Comments on: How Does A Preapproved Car Loan Work?

By: kayakdud

kayakdud — Sun, 05 Jul 2009 16:02:33 +0000

The bank won’t hand you money because they don’t have the security of their name on the title yet. The bank will authorize you up to a certain amount. The dealer will deal with them for the financing. The bank will want to know what you are thinking about – like used car, new car, brand, etc.
Warning. Don’t tell the dealer you have financing. They count on the kickback from the bank they like to use. They are willing to take less for a car if they think they are getting someting back you don’t know about. Sometimes it not a monetary kickback but they get a lower rate on the loans they use to buy the cars for the showroom and the lot if they give a certain amount of business to the bank.

By: Nicholas N

Nicholas N — Sun, 05 Jul 2009 14:34:29 +0000

for the capitalone pre-approved loan it works like this
1) you apply for the loan for a certain amount (which is for more money that you actually need), for example $25,000
2) once you get approved you will get a check in the mail that you can use at the dealer
3) you negotiate for the price of the car, and you write that amount on the check, say $21,000.
whatever you right on the check becomes your loan amount, and you pay it off based on the interest rate and loan length that you were pre-approved for.
Once you have negotiated the price, you might want to ask the dealer what kind of financing deals they have. When I bought my car I had a capitalone preapproved loan, but I ended up not using it, because the dealer was able to beat the interest rate by 1%, with the same terms

By: mastermind delinquent

mastermind delinquent — Sun, 05 Jul 2009 12:08:43 +0000

Some banks pre-approve you for a certain amout and the dealer works with that bank directly; not too many banks give you a blank check with a certain cap off amount. Stick to your bank, dealers always want you to sign up with their banks, i think you end up paying for more. When you walk up to a dealer pre-approved for a certain amount, its like walking in with cash so you can negotiate since they dont have to pre approve you. Go to a Credit Union they have better interest rates than banks do. Good luck.