What is the difference between prequalification and pre-approval for a car loan?

Prequalification is an early estimate of what you might qualify for, usually based on self-reported information and often a soft credit check. Pre-approval is a firmer conditional offer, usually based on a review of your credit, with a specific amount and rate range. Neither is final approval: the lender still needs to verify your information and the exact vehicle. Terms vary by lender, so ask whether a hard or soft inquiry is involved.