When applying for finance, many people confuse preapproval with full approval, but the two serve very different purposes. A preapproval is an initial check from lenders that tells you how much you’re likely to borrow based on your income, credit score, and affordability. It doesn’t lock anything in but gives you confidence when shopping for a vehicle. Full approval, on the other hand, is the final confirmation after you’ve chosen a car and provided all required documents. This step includes deeper checks and final lender verification. Understanding the difference can save you time, reduce stress, and prevent surprises when you’re ready to purchase. In this guide, we break down both stages clearly so you know exactly what to expect when financing your next vehicle.