What does pre-approved for car finance mean?

Being pre-approved for car finance means that a lender is likely to approve your application based on an initial assessment of your financial situation. This initial stage involves a soft solvency search, where you provide personal details like your identity, employment status, and income.

The lender will evaluate this information, along with your credit history and other factors, to determine if you are eligible for finance. If you pass these checks, you’ll receive a conditional approval, indicating that the lender is confident you can manage the repayments.

Pre-approval is useful because it helps you understand how much you can afford to spend on a car and gives you a clearer idea of your potential finance agreement, including the interest rate and repayment terms. However, final approval will require further checks, such as verifying your identity and fraud checks, before you can proceed with the finance agreement.

Does it include a down payment?

Not necessarily. You can choose to make a down payment, which reduces the total loan amount and boosts the lender’s confidence in your ability to repay. However, if you prefer not to or cannot make a down payment, you can still apply for car finance without one.

Is pre-approval guaranteed?

If the lender has conducted a pre-approval check and approved your request, then yes, you have a guarantee that financing will be provided for your car purchase. However, until you submit all required documents and your formal application, full approval cannot be assured.

Do pre-approvals for car finance affect your credit score?

Whether a pre-approval affects your credit score depends on the type of credit check the lender conducts. At Carplus, we use a soft check, which doesn’t impact your credit score. However, some lenders might go straight to a hard check, which can leave a mark and cause a slight dip in your score.

We only perform a hard check once you’re ready to finalise the deal and sign the contracts. This way, you can explore your options without worrying about unnecessary impacts on your credit.

Can I get pre-approved with a low credit score?

Having a low credit score can happen for various reasons, like missing a few payments or being tied to someone with debt issues. But that doesn’t mean you have to give up on getting pre-approved for car finance.

It might be a bit tougher to find a loan, but it’s definitely not impossible. In fact, some lenders specialise in helping people with less-than-perfect credit find the right car finance. So, even if your credit score isn’t where you’d like it to be, you still have options to get behind the wheel.

What happens when you get pre-approved?

Getting pre-approved for car finance means you can move forward with your application by submitting the necessary documents. It also gives you a clear idea of how much you can borrow and how to manage your repayments.

Pre-approval shows sellers that you're serious about buying, which can make negotiations easier and the whole process less stressful. With this confidence, you're better positioned to find the right deal and drive away in your new car without unnecessary delays.

What's the difference between a free finance check and getting pre-approved?

A free finance check is a quick way to see your chances of being approved for car finance, but it's not a guarantee. You can fill out a simple online form with basic details and get a response in about five minutes.

The result will usually tell you how likely you are to be approved, ranging from "Highly likely" to "Low likelihood." While this gives you an idea of your chances, it doesn’t mean you’re pre-approved, nor does it guarantee that a lender will offer you a final finance agreement. Pre-approval, on the other hand, comes with a stronger assurance that you can move forward with the purchase.

Why should I get pre-approved for car finance?

In general, being pre-approved for car finance has several critical advantages:

• Getting a realistic idea of the actual loan amount available;
• Obtaining information on the distribution of monthly payments;
• Getting more bargaining power when concluding a contract with an automobile dealer or next used car owner.

So, it’s great to go through a free car finance check and then contact Carplus specialists to get approval to be sure of getting a loan.

How to get pre-approved for car finance

Getting pre-approved for car finance is quick and easy, with most steps handled online. Start by choosing the car you want, then fill out a simple application, submit it, and wait for a response from the experts.

1. Pick your used car

Begin by browsing the available cars. Decide on the type of vehicle you want, set your budget for the initial deposit, and consider the mileage you're comfortable with. Once you've found the right car, you're ready to move forward.

2. Fill out an application on our website

Complete all the required fields in the form to ensure we have the most accurate information for evaluation. Do not worry about the privacy of your data because our site is completely secure.

3. Send your application

Once you've filled out the form, simply click "Submit Application." Our team will review your application as soon as possible, and you'll receive a response on whether you've been approved for car finance within a few hours.

4. Come and see us!

Once you’re approved, it’s time to visit us and take a closer look at the car you’ve chosen. You can check it out in person and ask any questions you have. And don’t worry—getting approval doesn’t lock you into buying that specific car. You’re free to change your mind and explore other options if something else catches your eye.

Why haven’t I received a decision?

If you’ve submitted an application but haven’t heard back within a few hours, it might be because your request was sent after business hours. Once our experts review your application, you’ll receive an SMS or an email with their decision.

In the meantime, double-check that you entered your contact details correctly. It’s always a good idea to verify your information before submitting the application to avoid any delays in communication.

Get in touch with our brokers for assistance

If you have any questions about getting pre-approved for car finance, our team is here to help. You can reach out to our experts for accurate information and personalised advice. Once you’ve found the right car, simply submit your pre-approval request on the Carplus website, and you’ll be one step closer to making your dream car a reality.