Hello,
I recently received a notice saying I was pre approved for an auto loan and it had a local dealer listed to contact. It looks like the loan is through Western Sierra Bank. I called the number on the notice to find out how much I was pre approved for and it was 22,000.

I called the dealer and told them that I have a current car loan with Ford Motor Credit but I'd like to use that car as a trade in and they said that would be fine. They told me to show up with a recent paystub and a utility bill to prove my current address.

I'm just curious if anyone has ever had any experience with this. My credit report currently shows 2 charge offs from about a year and a half to 2 years ago totaling 1100 dollars and my score is in the high 500's. Do you think I'll be denied once they run my credit report? Ford Motor Credit is reporting that I have been paying as agreed for the past year and a half.

Thanks,
Stacy

If you are actually PREAPPROVED how can you be denied credit?

Kinda got the feeling this might be advertising gimmick.

Did Western Sierra stipulate you trade your current open auto loan?

In the fine print it says "Information contained in a pre qualifying report from a credit reporting agency was used by us in connection with this offer. You received this offer because you satisfied the credit criteria for credit wortiness used to select consumers for this offer. You may not be extended this offer if after you respond to the offer, we determine that the pre qualifying report was incorrect or you no longer meet the criteria." It then goes on to say that I must provide proof of residence and employment over the past 3 years.

I've just never seen anything like this and I have been VERY good with the current car loan I have now so I figured that maybe I could very well possibly qualify because of that and the fact that I've lived in the same place for a few years and had the same employer.

I just don't want to get my hopes up, so I was hoping someone could tell me they've had a positive experience taking advantage of something similar.

I also just noticed that it looks like it's from a service called Autoproval. Has anyone heard of anything called Autoproval? I just happened to see Western Sierra noted in the fine print and I'm guessing that is the lender.

You are NOT approved!

But you very well MIGHT be approved with that bank.

The amount of money you owe on your current car versus the actual worth of that car and you downpayment or lack therof and the total situation will ultimely determine your APR etc.

The dealer probably paid a marketing firm to pre screen applicatants and mail you the letter. Just my guess.