My thinking is to buy a used car from private individual instead of going to a dealership. Is it best to first find the car your looking for, then apply for the loan? Or is it better to apply for a car loan with a set amount in mind, and then have the money ready to go once I come across the car Im looking for?
Thank you to all who answer
2007-05-16 09:54:53 · 12 answers · asked by Frank 2 in Cars & Transportation ➔ Buying & Selling
Go to your bank or preferrably credit union, and get the financing approved first. It saves a lot of hassle. They should be able to do this for you over the phone in about 15 minutes. At least they did that for me.
It's really bad to buy a car and find out you can't pay for it.
2007-05-16 10:34:53 · answer #1 · answered by Uncle Pennybags 7 · 1⤊ 0⤋
Hi,
Anytime you can work out a pre-qual for a loan of any type you are much better off. The saying goes like this "Money Talks, B.S. Walks" very simple. There are a couple of ways to find the car you want if you're willing to do the research. I think you're correct in avoiding a dealer, all the cars on their lots a really marked up. First, go on line to Kelly blue book with the types of cars you would like, find their asking price they have two prices privet party sale and trade-in price. There you get an idea of the Blue Book Value. Next you can go on line and find the cars for sale in your area, by state, county, maybe even city. They will all come with pictures. You can also look in the News Papers or in most areas there is a cars for sale pamphlet. Once you find the car you want work the price based on all you find out using the value format from Kelly Blue Book. Be careful with the Kelly Blue Book in my research this document is tied into the finance remaining on most cars, in other words it's whats left to pay on this Make and Model. With Money in hand you can make a deal right on the spot. Good Luck.
2007-05-16 10:13:31 · answer #2 · answered by Big Kat 3 · 1⤊ 0⤋
Most of the answers here are worthy, I'll add this. Knowledge is power, do your research and determine the actual cash value of the car, and make your offer based on that. Another thing, having cash in your hand means nothing insofar as negotiations are concerned, a dealer actually can make more money with a financed deal as opposed to cash. What do you people think anyway, if you pay cash the dealers cost somehow is magically reduced? They don't want the responsibility for the money either, I once had a guy pay cash for a brand new Nitro, 25k and change, we had to have four different people count it, and get the office manager out of bed to come and put the money in the safe. Writing a check for the full amount doesn't make any difference either, the dealers costs remain the same, it makes no difference to them how you pay for the car. Edit, uh N, I actually was in the car business and KNOW what I'm talking about. You assume the sale with every customer, cash or otherwise, or you starve.
2016-05-20 00:13:22 · answer #3 · answered by ? 3 · 0⤊ 0⤋
Some banks will preapprove you but you still have to be approved for the specific car once you find it, other banks will give you the money out right,,,most likly at a huge APR...Also remember buying a car from an individual also has a higher APR than buying a car from a dealership.
In my personal opinion, wait till you found the car, then apply for the loan, then talk them down once you have cash in hand.
2007-05-16 10:01:12 · answer #4 · answered by importdayz 2 · 1⤊ 0⤋
I personally think it's best to set out your loan before, so you can have a set limit and not get talked into trying for something more expensive by the car dealers, or talk them down in price by using your loan as an excuse :)
2007-05-16 09:57:46 · answer #5 · answered by Kimberly B 3 · 1⤊ 0⤋
it really depends on the lender and your credit. Capitol one auto finance will do just what your asking. They look at you and not the car. Most lending places will want to know the year make and model of the car your buying first. They do not want to be in a bad position if you default on the loan so they will only lend you a percentage of the retail book value of the car. With out car information they have nothing to look up.
2007-05-16 09:59:16 · answer #6 · answered by asccaracer 5 · 1⤊ 0⤋
If you have a bank account,go and talk to the loan officer,sometimes they have alot of repossed cars that you can buy at a bargain,but take someone that knows about cars to check it out so you wont get stuck with a lemon.
2007-05-16 10:02:32 · answer #7 · answered by SKUNK 2 · 1⤊ 0⤋
It sometimes is good. That way you can see how much you really can afford with what APR. You can use that as leverage against other financiars to get the best deal. Besides, when you see the car you want, you won't have to wait to get financing and such..you can go shopping and have the "money" ready at your fingertips.
2007-05-16 09:59:02 · answer #8 · answered by Marketingbabe 2 · 1⤊ 0⤋
get preapproved for a loan first. That way you know what price range you can afford and you save yourself time and potential disappointment looking at cars that are out of your payment range.
2007-05-16 10:04:03 · answer #9 · answered by malemute1 4 · 1⤊ 0⤋
We had our loan all set before we looked. I think it's personal choice.
2007-05-16 10:03:54 · answer #10 · answered by luckford2004 7 · 1⤊ 0⤋