Financing & leasing
Pre-approval: What it means and why you should get it before shopping
Pre-approval tells you exactly what you can borrow at what rate — before you set foot in a dealership. It gives you real negotiating power.
What is pre-approval?
A pre-approval is a conditional commitment from a lender to loan you up to a specific amount at a specific interest rate, based on your credit profile and income. It's not a binding contract — you can choose not to use it.Why get pre-approved before you shop?
1. You know your real budget. A payment you can afford on paper may look different against a 60-month vs. 84-month loan. Pre-approval fixes the rate and term, so your ceiling is accurate.2. You have negotiating leverage. Walking in with a pre-approval from your bank or credit union shifts the dynamic — the dealer has to beat your rate or you walk. Dealership financing (especially from captive lenders like Nissan Canada Finance) is often competitive, but you need a benchmark.
3. It speeds up the process. Pre-approval on file means the finance conversation at the dealership takes 20 minutes, not two hours.
Where to get pre-approved
Soft pull vs. hard pull
Checking your own score or getting a pre-qualification estimate is a soft pull — invisible to other lenders, no score impact.A pre-approval (or final loan application) is a hard pull — visible to other lenders, knocks 3–5 points off your score temporarily. Multiple auto loan inquiries within a 14-day window are treated as a single inquiry by the credit bureaus, so shop rates aggressively in a concentrated window.
What lenders look at
- Credit score
- Debt-to-income ratio (total monthly debt ÷ gross monthly income — keep below 40%)
- Employment history (2+ years preferred)
- Down payment (10–20% reduces your rate)
- Vehicle age and mileage (older / higher-mileage vehicles get higher rates)
Ready to put this into action?
Browse our current inventory or talk to our team — no pressure, no forms to fill out just to see pricing.