Quote:
Originally Posted by ffrcobra_65
I have never purchased a car this way before but here is the situation...
I applied and got approved for an auto loan by my local credit union. They sent me a letter that says I have been pre-approved for $xx amount and once I found the car I want to purchase, to call the CU to complete the transaction.
A person at the CU explained to me that dealers will usually accept the letter of loan approval and based on that, will sell me the car and let me take it home, then I would have to take the Purchase Contract and Window Sticker to the CU, and the CU will send the check to the dealer. Does it work that way? Or the dealer won't let you take the car until they get the check?
I know some CU or other finance instutions will issue the check and you go car shopping. So I wonder if what my CU told me is something dealers also usually accepts.
Like I said, I have never bought a car this way before. I have always just had the dealer shop around for financing for me or bought car outright with cash.
I asked my dealer to shop around for me as well in case there are better rates than 4.99% out there.
No offense to some of you but please, let's try to stick to the topic  |
The way it's worked for us in the past is;
- You go and get preapproval from the bank/credit union
- Go to the dealer and find the car you want and do the paperwork
- Take the paperwork, invoice and window sticker back to the bank/credit union. Sign some more paperwork and they cut a check
- Take the check back to the dealer
- Now you can take delivery of the car
You can also call the bank and have the dealer fax the paperwork to them instead of driving there yourself but if you do this the bank will mail the check to the dealer so it will delay the time when you can take delivery of the car. No dealer will allow you to take delivery of a car until they have the check from your bank.