getting pre-approved with dealership for loan - Page 2 - Camaro5 Chevy Camaro Forum / Camaro ZL1, SS and V6 Forums

Egon · 10-23-2013, 10:45 AM

The first thing you need to do is find out what your credit score is. If you don’t know that you won’t know if the numbers that the dealership is giving you are good or bad. 14% might be good for someone with bad credit but if you have a 750+ score that’s horrible. Know ahead of time so you won’t get taken. Second getting pre-approved through the dealership is a sign that you have committed to purchasing a car from them and strengthens their bargaining position. They know you aren’t going to walk and they can stand firm on price. (at least they think they can) In addition as you stated you are going to be driving 4 hours away for this that is a second strike in their favor, you might look a bit desperate to them, even if you are not. There is absolutely no way in hell I would commit to driving 4 hours to negotiate with someone. All of that needs to be taken care of by phone or email before I would even dream of driving that far. Believe me I am totally on your side on this but I think you are setting yourself up for getting screwed on this deal.

I would recommend you do this. Check with your bank or credit union for their rates first, then check some of the online lenders to see if they can beat that rate. Walk into the dealership with a preapproved loan. If the dealership wants to start discussing loan rates with you while you are negotiating on the car tell them “I haven’t even decided if I am going to buy this car yet why would I want to discuss loan terms already?” Focus on the price of the car ONLY! Do not look at monthly payments only at the price of the car and negotiate it as low as you can. Do not work from MSRP down start at invoice price, if it’s a new vehicle you can find that out ahead of time on any of a number of websites like Edmunds or Truecar. My opinion though is that you should never set foot into a dealership until you have already negotiated a price over the phone. There are exceptions of course if you are a terrific negotiator, but most of us will greatly weaken our bargaining power by going into a dealership to negotiate. (they have you on their turf and they know how to work the game)

Cast a wide net, it sounds like you have fixated on this one dealership because they have a vehicle that you like, and they probably already know this. Call other dealerships in your area, they might be able to trade for that vehicle or find another nearby that you overlooked that fits your specifications. (or place a factory order if you are looking for a 2014) If you are looking for a 2013 then be flexible since there are not as many available out there. Conduct everything by phone or email first, make them work for your business. If they fear that you might buy from someone else they will try harder, it is the end of the month and they might need your purchase to hit a sales goal.

With all this being said I think you need to slow your roll a bit here and take a deep breath and reassess this process. Taking some time to plan all of this out from scratch might be the best idea and we are all willing to help you out on it. I really want you to get an awesome deal you can brag about to everyone.

LStick · 10-23-2013, 11:00 AM

Called my credit union before I even contacted the dealership on the Camaro- in fact I walked in on the Camaro that I bought cold without calling on it first. I assumed since it was on their website- it was there.(they had two)

Credit union gave me a rate- and I already knew my credit score.

Figured if the dealer could beat it - great.

And they did. Which kind of kept the wolf at bey when I was in the F&I office rejecting all of the other "great plans" they were offering.

I also made a stipulation of no pre-payment penalty on the loan.

Thats another "gotcha" that will keep equity away from the car.

nyrfan · 10-23-2013, 11:42 AM

OP:
1st if you don’t below to a credit union, make sure you join one ASAP!

Now, I highly suggest getting a preapproval though a CU, it’s a fast and simple process. Once approved the CU will give you the maximum approval amount, interest rate and most CU's will hand you a blank check, YES A BLANK CHECK! With this check you go into a dealer (any dealer), pick out the car of your choice (up to the approval amount), hand the check over to the finance manager and he completes the rest, that’s it. It’s the easiest and safest way to secure your rate and loan amount. Here is the reason: The CU has already approved you on a manual review, they will NOT change the terms of the loan, and it’s 100% done and secured.

A deanship approval on the other hand is a bit different. Unless you have above average credit (auto enhanced score of 700+) your application will get farmed out to several lenders. What this means: You will have multiple credit pulls and the dealer will get a couple of different approvals and will likely go with their preference of the finance company which does not always mean the lowest rate for you. It also means that if you are approved and take a spot delivery (meaning everything is done on the day day) the loan rate is NOT guaranteed. Meaning although you received an approval, the rate and / or down payment requested can change, yes even if you sign a contract. This is what spot delivery is and it’s allowed as the approval the dealer received was based on info you provided and while it may be 100% accurate when it’s reviewed by the finance company they can change the terms. This will NOT happened when approve though a CU or the bank you currently do business with.

Here is a good read:

http://www.camaro5.com/forums/showthread.php?t=313012

Hope this helps, but should you have any other questions let me know.

On a side note, the person who mentioned a pre pay penalty. This only happens if you have terrible credit and receive a subprime loan. There will NEVER be a prime loan with this stipulation.

jshaf · 10-23-2013, 05:28 PM

Quote:

Originally Posted by Baba

You've been on this forum for almost 4 years with nearly 3000 posts. One would think you might've read some of the threads that had to do with or mentioned financing. Apparently not..

you would be wrong, I word search before I usually ask a question, I couldn't find a satisfactory answer so I posed the question! and I work 6 days a week and I help take care of two elderly parents and my family, my one true vise is my Camaro so yes time is at a premium! not always easy to find an hour let alone a day or afternoon. I might just say F-it and revisit the idea in the spring when I have more time and a lower Debt ratio.

jshaf · 10-23-2013, 07:00 PM

found out I have a 768 credit score, pretty happy :o)

nyrfan · 10-23-2013, 07:10 PM

Quote:

Originally Posted by jshaf

found out I have a 768 credit score, pretty happy :o)

Where did you get your score from? I ask because the is FICO and FAKO. Most pull a FAKO and then are quite surprised when a dealer / bank pulls a FICO and it's much different.

Sent from my 2SS/RS

jshaf · 10-23-2013, 07:29 PM

credit.com, supposed to be from experian I believe. I had no idea I just wanted a general idea where I was at. guess if is at least somewhat accurate. I know a year ago someone I was getting an account with mentioned it was a pretty good score but I never asked at the time. not sure if they would have disclosed it or not. have a couple things to pay off in january and febuary then will recheck it again in april to see where I am at.

Bulldog3071 · 10-23-2013, 07:43 PM

best bet get pre=approved from your bank or credit union. The dealership gets a taste if you finance through thier bank of GM. I got pre-approved from my CU at 1.75% and the dealership could not touch it and saved me a bunch of time. Do your homework and get pre-approved before going to the dealership.

baum · 10-24-2013, 06:36 AM

I had my dealership beat my CU. my Cu was 1.9 the dealer beat it at 1.5 with one of their Cu's. too bad the dealer never saw their cut since i paid it off before 6mo. i was told that a you had to have it open for 6 mo before the dealer got their chunk...

they asked me if i would go through them i said if they can beat my CU.

jshaf · 10-25-2013, 05:47 PM

ugh, they sold it before I could get there, was going to get up early and go down there and I was checking there web site and it is no longer available, plans destroyed. looking like I might have to wait til spring, hope I can get another private offer then!

nyrfan · 10-25-2013, 05:49 PM

Quote:

Originally Posted by jshaf

ugh, they sold it before I could get there, was going to get up early and go down there and I was checking there web site and it is no longer available, plans destroyed. looking like I might have to wait til spring, hope I can get another private offer then!

I am going to PM you now.

Sent from my 2SS/RS

10-23-2013, 11:42 AM	#17
nyrfan Let's go Rangers! Drives: 13' AGM 2SS/RS L99 Join Date: Jun 2011 Location: Orlando, FL Posts: 10,742 View My Garage	OP: 1st if you don’t below to a credit union, make sure you join one ASAP! Now, I highly suggest getting a preapproval though a CU, it’s a fast and simple process. Once approved the CU will give you the maximum approval amount, interest rate and most CU's will hand you a blank check, YES A BLANK CHECK! With this check you go into a dealer (any dealer), pick out the car of your choice (up to the approval amount), hand the check over to the finance manager and he completes the rest, that’s it. It’s the easiest and safest way to secure your rate and loan amount. Here is the reason: The CU has already approved you on a manual review, they will NOT change the terms of the loan, and it’s 100% done and secured. A deanship approval on the other hand is a bit different. Unless you have above average credit (auto enhanced score of 700+) your application will get farmed out to several lenders. What this means: You will have multiple credit pulls and the dealer will get a couple of different approvals and will likely go with their preference of the finance company which does not always mean the lowest rate for you. It also means that if you are approved and take a spot delivery (meaning everything is done on the day day) the loan rate is NOT guaranteed. Meaning although you received an approval, the rate and / or down payment requested can change, yes even if you sign a contract. This is what spot delivery is and it’s allowed as the approval the dealer received was based on info you provided and while it may be 100% accurate when it’s reviewed by the finance company they can change the terms. This will NOT happened when approve though a CU or the bank you currently do business with. Here is a good read: http://www.camaro5.com/forums/showthread.php?t=313012 Hope this helps, but should you have any other questions let me know. On a side note, the person who mentioned a pre pay penalty. This only happens if you have terrible credit and receive a subprime loan. There will NEVER be a prime loan with this stipulation. __________________ Soprano 4/1/00-6/14/11, Gone but NEVER forgotten! FSP tuned: 377/389

10-23-2013, 07:00 PM	#19
jshaf Montani Semper Liberi Drives: 2011 Black 2SS/RS w/ IOM stripes Join Date: Feb 2010 Location: Masontown, WV Posts: 4,841	found out I have a 768 credit score, pretty happy :o) __________________ Stainless Works 1 7/8 Long Tude Headers, Stainless Works High Flow Cats, Stainless Works Retro Chambered Catback, Z/28 Air Intake, RDP Tuned, FR41 Chrome Rims, 1100W stereo, 35% Tint

10-23-2013, 07:29 PM	#21
jshaf Montani Semper Liberi Drives: 2011 Black 2SS/RS w/ IOM stripes Join Date: Feb 2010 Location: Masontown, WV Posts: 4,841	credit.com, supposed to be from experian I believe. I had no idea I just wanted a general idea where I was at. guess if is at least somewhat accurate. I know a year ago someone I was getting an account with mentioned it was a pretty good score but I never asked at the time. not sure if they would have disclosed it or not. have a couple things to pay off in january and febuary then will recheck it again in april to see where I am at. __________________ Stainless Works 1 7/8 Long Tude Headers, Stainless Works High Flow Cats, Stainless Works Retro Chambered Catback, Z/28 Air Intake, RDP Tuned, FR41 Chrome Rims, 1100W stereo, 35% Tint

10-25-2013, 05:47 PM	#24
jshaf Montani Semper Liberi Drives: 2011 Black 2SS/RS w/ IOM stripes Join Date: Feb 2010 Location: Masontown, WV Posts: 4,841	ugh, they sold it before I could get there, was going to get up early and go down there and I was checking there web site and it is no longer available, plans destroyed. looking like I might have to wait til spring, hope I can get another private offer then! __________________ Stainless Works 1 7/8 Long Tude Headers, Stainless Works High Flow Cats, Stainless Works Retro Chambered Catback, Z/28 Air Intake, RDP Tuned, FR41 Chrome Rims, 1100W stereo, 35% Tint

10-23-2013, 10:45 AM	#15
Egon Drives: 2014 2SS/RS 1LE Join Date: May 2013 Location: Charlotte NC Posts: 977	The first thing you need to do is find out what your credit score is. If you don’t know that you won’t know if the numbers that the dealership is giving you are good or bad. 14% might be good for someone with bad credit but if you have a 750+ score that’s horrible. Know ahead of time so you won’t get taken. Second getting pre-approved through the dealership is a sign that you have committed to purchasing a car from them and strengthens their bargaining position. They know you aren’t going to walk and they can stand firm on price. (at least they think they can) In addition as you stated you are going to be driving 4 hours away for this that is a second strike in their favor, you might look a bit desperate to them, even if you are not. There is absolutely no way in hell I would commit to driving 4 hours to negotiate with someone. All of that needs to be taken care of by phone or email before I would even dream of driving that far. Believe me I am totally on your side on this but I think you are setting yourself up for getting screwed on this deal. I would recommend you do this. Check with your bank or credit union for their rates first, then check some of the online lenders to see if they can beat that rate. Walk into the dealership with a preapproved loan. If the dealership wants to start discussing loan rates with you while you are negotiating on the car tell them “I haven’t even decided if I am going to buy this car yet why would I want to discuss loan terms already?” Focus on the price of the car ONLY! Do not look at monthly payments only at the price of the car and negotiate it as low as you can. Do not work from MSRP down start at invoice price, if it’s a new vehicle you can find that out ahead of time on any of a number of websites like Edmunds or Truecar. My opinion though is that you should never set foot into a dealership until you have already negotiated a price over the phone. There are exceptions of course if you are a terrific negotiator, but most of us will greatly weaken our bargaining power by going into a dealership to negotiate. (they have you on their turf and they know how to work the game) Cast a wide net, it sounds like you have fixated on this one dealership because they have a vehicle that you like, and they probably already know this. Call other dealerships in your area, they might be able to trade for that vehicle or find another nearby that you overlooked that fits your specifications. (or place a factory order if you are looking for a 2014) If you are looking for a 2013 then be flexible since there are not as many available out there. Conduct everything by phone or email first, make them work for your business. If they fear that you might buy from someone else they will try harder, it is the end of the month and they might need your purchase to hit a sales goal. With all this being said I think you need to slow your roll a bit here and take a deep breath and reassess this process. Taking some time to plan all of this out from scratch might be the best idea and we are all willing to help you out on it. I really want you to get an awesome deal you can brag about to everyone.

10-23-2013, 11:00 AM	#16
LStick Drives: 2021 Shadow Gray 1LS Join Date: Oct 2011 Location: Streetsboro Ohio Posts: 1,371	Called my credit union before I even contacted the dealership on the Camaro- in fact I walked in on the Camaro that I bought cold without calling on it first. I assumed since it was on their website- it was there.(they had two) Credit union gave me a rate- and I already knew my credit score. Figured if the dealer could beat it - great. And they did. Which kind of kept the wolf at bey when I was in the F&I office rejecting all of the other "great plans" they were offering. I also made a stipulation of no pre-payment penalty on the loan. Thats another "gotcha" that will keep equity away from the car.

10-23-2013, 07:43 PM	#22
Bulldog3071 Drives: 2010 Camaro 2SS/RS LS3 Join Date: Oct 2013 Location: Kernersville, NC Posts: 931 View My Garage	best bet get pre=approved from your bank or credit union. The dealership gets a taste if you finance through thier bank of GM. I got pre-approved from my CU at 1.75% and the dealership could not touch it and saved me a bunch of time. Do your homework and get pre-approved before going to the dealership.

10-24-2013, 06:36 AM	#23
baum Drives: 2013 1LS, 2013 Ram 1500 Join Date: Mar 2013 Location: Minneapolis, mn Posts: 645	I had my dealership beat my CU. my Cu was 1.9 the dealer beat it at 1.5 with one of their Cu's. too bad the dealer never saw their cut since i paid it off before 6mo. i was told that a you had to have it open for 6 mo before the dealer got their chunk... they asked me if i would go through them i said if they can beat my CU.