Getting pre-approved for a loan can be one of the wisest steps to take when shopping for a car. Often, when you head to a dealership, even with a budget in mind, car sales associates may try to lead you to more expensive options. Also, they’ll probably offer their own financing solutions, and with some numerical manipulation, can make almost any car fit your budget. This sounds enticing, but it may land you a loan that you can’t afford, typically for over a longer time period. It’s a better idea to have your monthly and total budget worked out beforehand. That way, you don’t get talked into a car that’s not a good fit for your budget. Plus, having a pre-approved loan in hand can give you some bargaining power! Dealerships may try to offer you financing via their affiliated financial institutions or loan companies at a lower rate than you have found elsewhere. Just beware of additional fees, and make sure that if you take their offer, it really is better. Again, check out a loan calculator to compare.