I don´t know if a preprint version is considered as a good reference. What happens if that version will never be published? I don´t have clear the usefulness of a preprint version.
If the preprint would not be published that doesn't mean it might not be cited.
Currently, due to the continuous increase in the dynamics of science development, it makes no sense to wait until the final version of the cited article will be published. Instead, there are appropriate methods to manage the chaos associated with the creation of different versions of the same article. For example, using the DOI system you can give one ID to identify all versions as a common concept, and for each of the subsequent versions a separate one. Citing we can then rely on DOI common for all versions. More about this concept can be found, for example, here: