Trailer Loan Pre-Approval Explained
Pre-approval tells you how much you can borrow before you've found the trailer. It makes shopping simpler and lets you move quickly when the right one comes up.
What pre-approval is
A lender assesses your income, expenses and credit history and agrees in principle to lend up to a certain amount, subject to conditions. The main condition is usually that the trailer you choose is acceptable to them.
Conditional vs formal approval
- Pre-approval (conditional): based on you, before a specific trailer is chosen.
- Formal approval: once you've chosen the trailer and the lender has checked it, including the price, age and, for private sales, the seller and PPSR.
Pre-approval isn't a guarantee. If your circumstances change, or the trailer doesn't suit the lender, the final approval can differ.
Want to talk it through? Send a free enquiry and we'll pass it to a broker who does trailer loans every day. Enquiring doesn't affect your credit score.
How long it lasts
Pre-approvals usually last a few months, depending on the lender. If yours lapses, it can often be refreshed with updated documents.
Why it helps
- You know your budget, so you only look at trailers you can afford.
- Sellers take you more seriously.
- You can move fast on popular used campers, floats and boats.
- Private sales go more smoothly when the finance side is already sorted.
Auctions
Buying at auction is usually unconditional, so you need finance sorted beforehand. Check with your broker whether the lender will accept the trailer type and an auction purchase before you bid.
Does it affect my credit?
Pre-approval normally involves a credit check, which is recorded on your file. That's one reason to get it once, through the right lender, rather than with several.