Post # 1
FI and I have both bought cars before, but from people we know. We’ve never gotten financing or anything like that before. I’ve tried to Google my question, but everything is just so vague.
My question is – do you get the financing before you find the car? How does that work with the dealership? Do they call the bank you are approved with? Do you take a piece of paper that says, “Cubicalmouse is approved for this much money”? How does that work??
And then, what happens with the insurance? Is the new car covered for a few days under your old policy? Do you call your insurance company from the dealership to get covered? How does that work??
Post # 3
It depends. You can try to get the financing first, through your bank or credit union, but they’re going to ask for specs on the car you want. You can also wait until you get there to use their financing office, but then you can’t really shop around much for rates.
Insurance is after you buy the car, just call up your provider and they’ll add it.
Post # 4
You can get financing before you start looking. I would submit an application just to see what kind of rate/$ approval you get. Its good to have information on your side before you start shopping. Dealerships try to close the deal the day you find the car because they don’t want to risk you shopping around. Dealerships have their own relationships with lenders, they will call their own people not anyone you’re pre-approved with. You don’t need to show them ANYTHING about your pre-approval. In fact I would lie about the rate you can get to pressure them.
The car is not covered for a few days. You will have to call your insurance from the dealership (if you buy that day) and get the insurance to fax over proof of insurance before they will let you off the lot.
Also, if one of you has a smart phone get an amortization calculator app. They’re probably going to speak to you in terms of monthly payments not in total loan outstanding. This is how they mask some rando bs dealership charges.
Post # 5
You can go to your bank to get a loan or you can go to the dealer and get a loan with their bank. If you have a credit union as your bank, you might get a lower interest rate. Although, if you have amazing credit, sometimes dealers offer 0% APR or 3%APR for financing.
I would go with someone who can negotiate. I’m too nice of a person to negotiate so I would more than likely take the first offer they present to me which is probably a bad deal. Last time I went to buy a car, I went with my BIL, which I thought was someone who help me negotiate a good deal. Well, he wasn’t any help. He practically fed me to the wolves. Also, his friend was the dealer so… yeah, I certainly did not get a good deal like I thought I would. I should have said no and walked away. But I didn’t. It’s still a good car (Honda Accord) and it will last forever. It’s just that I paid too much for it.
Yeah, my husband did a great job with his car. I’m taking him when I get another car.
I’m not sure about the insurance part. My sister is a car insurance agent so I did call her to let her know that I was thinking of buying. So she went over somethings with me.
I think when I bought my car, they pretty much transfer the insurance from your old car to your new car. Your insurance company may call you to confirm.