Is it better to be approved for a loan, before going to the dealership? Know of any lending companies ?

Answer 1

Sure, saves time and lets you go in with a better interest rate.

Answer 2

It's always better to have your own loan approved before you go car shopping. I am in the auto finance business and there are a couple of things you need to keep in mind.

First, do not tell the dealer that you have your own money until you have agreed on the best price for the vehicle you want. The reason for this is that dealers make whats called reserve money on the loans that they provide by marking up the interest rate anywhere from 1-3 points depending on the lender they get you approved with. So as long as they think you are going to finance with them they will give you a better price thinking that they are going to make additional money on the loan.

Second, do not be afraid to walk out if you think you are not getting a good deal. When a customer starts to walk out, a manager will get involved and make you a better offer because they know that once you leave there is a very slim chance they will ever get you back into the dealership.

Try your own local bank or credit union, they will always give you a bettor rate than a dealer. The only exception would be if you qualify for 0% financing through one of the manufacturers. You can also try Capital-One, H.S.B.C. and Wells Fargo on line. These are my three largest banks.

Hope this helps and good shopping.

Answer 3

I agree witht the first poster.

You should check with your bank or credit union first before looking at other lending companies.

If you don't belong to a credit union you might think of joining one, they have much better rates than most other lenders.

Answer 4

There are several on-line Lenders that can approve you for a loan. They will send you a blank check after you send normal documentation in. Proof of insurance, Proof of income, Drivers license and References. I hope this helps.