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Question about applying for auto loan before arriving to dealership
Posted on 12/21/16 at 10:30 am
Posted on 12/21/16 at 10:30 am
Dumb question I'm sure but what does this process look like? I'm on bankrate.com and see a few different places I could apply for a loan. How would I know what to apply for if I haven't negotiated the price? Let's say I think the vehicle will cost $28,000. Do I apply for like $32,000 now then turn over the paperwork from the dealership that shows the actual purchase price? Will I have a check for $32,000 from the bank? What will I give the dealership to pay?
Those questions are all over the place but want to make sure I get the best deal.
Those questions are all over the place but want to make sure I get the best deal.
5
Posted on 12/21/16 at 10:36 am to LETSGEAUX2
I know you didn't ask, but there are often incentives for financing through the dealership ($1000 off the price). After you make 3 payments, you can switch the loan over to another lender. Just something to keep in the back of your head.
Posted on 12/21/16 at 10:45 am to LETSGEAUX2
Most banks/CU's will give you a "blank check" up to a certain amount(thier max or whatever you request). When you hand it to the dealership, they call the finincial institution to verify it and complete the transaction.
Posted on 12/21/16 at 11:40 am to LETSGEAUX2
You usually are applying for an "up to" amount. So, up to 30K, etc. Some do a blank check, some just will get the paperwork from the dealership at the appropriate time.
Posted on 12/21/16 at 11:46 am to LETSGEAUX2
If you are buying new, incentives (like 0% apr or rebate with lender) are usually more worth it than financing with another lender. And it seems like you are not putting much of down payment on this vehicle, so the incentive apr would seem the way to go. If you are buying certified pre-owned, usually the manufacturer has special rates to still make it more sensible to go thru dealer. What are you looking to purchase?
Posted on 12/21/16 at 12:20 pm to CoachRobertson
Possibly a 2016 Chevy Colorado. I have a 2008 Tacoma to trade in, hoping to get about $12,000 for.
Posted on 12/21/16 at 12:28 pm to LETSGEAUX2
I just got 0.9% or 1k cash back. Other brands had 0% deals (think gmc did as I was looking briefly at the canyon) If shopping new, I find dealerships to be competitive with rates. I've never gone in with prior approvals, but I've also always had a very good credit score and was willing to go to my work credit union if needed.
Posted on 12/21/16 at 12:50 pm to KG6
quote:I think it's a good idea to get a pre-approval, and then allow the dealership to beat it if you believe that's the best deal.
If shopping new, I find dealerships to be competitive with rates. I've never gone in with prior approvals, but I've also always had a very good credit score and was willing to go to my work credit union if needed.
Last time I bought a car, I wanted $1500 off the price they were offering. They gave me an extra 1000$ off and I let them finance it for a bit lower than what I was pre-approved for, which saved roughly the extra $500.
It's always good to have options when looking to buy a new car.
Posted on 12/21/16 at 12:53 pm to LETSGEAUX2
quote:
hoping to get about $12,000 for
Take it to carmax and get an offer. Use that as leverage at the dealership when they lowball you. Offer should be good for 7 days and it only takes about 30 min.
Posted on 12/21/16 at 2:33 pm to gamatt53
Try a local credit union first .
Alot of the online places will preapprove you , but when you to to the dealership to negotiate and buy, it may take a day or two or more to get all the paperwork from a bank in idaho . Some dealerships may not release the vehicle until they have all documents in hand, not just a pre approval letter.
If you go through a local credit union .. it tends to be much more streamlined .
True Example. I went to a local credit union (houston) where I live and filled out the app for a loan , was approved up to the amount I asked for ( I added a few thousand just incase) - Took like 20 minutes . They give you the paperwork / letter of approval.
Went to dealership , negotiated the truck , sat down with finance and told him I was preapproved. He asked what I was preapproved for and I told him to take a hike because I knew he couldnt beat what I had in hand. . Handed him the finance papers from my credit union , and took the keys .
A dealership will add a few percentage points on a used vehicle vs what your good (hopefully) credit will get you through a credit union or local bank.
If you're buying new .. just finance through the dealership. They usually offer incentives.
Alot of the online places will preapprove you , but when you to to the dealership to negotiate and buy, it may take a day or two or more to get all the paperwork from a bank in idaho . Some dealerships may not release the vehicle until they have all documents in hand, not just a pre approval letter.
If you go through a local credit union .. it tends to be much more streamlined .
True Example. I went to a local credit union (houston) where I live and filled out the app for a loan , was approved up to the amount I asked for ( I added a few thousand just incase) - Took like 20 minutes . They give you the paperwork / letter of approval.
Went to dealership , negotiated the truck , sat down with finance and told him I was preapproved. He asked what I was preapproved for and I told him to take a hike because I knew he couldnt beat what I had in hand. . Handed him the finance papers from my credit union , and took the keys .
A dealership will add a few percentage points on a used vehicle vs what your good (hopefully) credit will get you through a credit union or local bank.
If you're buying new .. just finance through the dealership. They usually offer incentives.
This post was edited on 12/21/16 at 2:39 pm
Posted on 12/21/16 at 3:30 pm to LETSGEAUX2
Use the Will Cover car buying method.
Posted on 12/21/16 at 9:28 pm to Jcorye1
OP, you need to get another Tacoma
Posted on 12/22/16 at 8:27 am to LETSGEAUX2
Not a troll so don't take this the wrong way. If you're hoping to get $12k from your Tacoma why wouldn't you put that into a full size Chevrolet? Like a 1500 crew cab?
With rebates and that trade that goes a long way. I see you like smaller trucks but a Colorado isn't going to hold its value like your Tacoma.
With rebates and that trade that goes a long way. I see you like smaller trucks but a Colorado isn't going to hold its value like your Tacoma.
Posted on 12/22/16 at 9:11 pm to momentoftruth87
^^^^^agree! Tacoma #1 in resale value. 200k miles out it, no problem. Dont hear about colorado/canyom doing that on a consistant basis
Posted on 12/24/16 at 9:05 am to LETSGEAUX2
quote:
Possibly a 2016 Chevy Colorado. I have a 2008 Tacoma to trade in, hoping to get about $12,000 for.
That's funny. I looked up info on the Colorado this week. Great looking truck. I am going to drive my xterra,till the wheels fall off though. I am just enjoying not having a car payment too much currently.
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