Benefits of Getting Preapproval for a Vehicle Loan at the Credit Union.
One of the most expensive purchases you may make is buying a vehicle. This is why many people need to take out an auto loan. So, you head out to the dealer to find a car and usually a loan as well. But what you don’t know, could be quite costly.
Before you go shopping and are mesmerized by all of the cool bells and whistles on that shiny new vehicle that you must have and definitely “deserve”, you need to step back and do your research ahead of time.
Ask yourself these questions BEFORE you head out the door:
- What type of car do I want? Car? Van? Truck?
- What do I really need?
- How do I plan to use this car? Leisure and/or work?
- What is the bottom line that I am willing to pay (a/k/a what can I truly afford)?
- How much do I intend to finance? Monthly payments?
Once you have “honestly” answered all of these questions, your next step may be to contact the Credit Union to be preapproved for a vehicle loan.
WHY?
LESS STRESS. Before you even step foot into a dealership, you already know what most people stress out about: your down payment and our maximum monthly payment. Because your auto loan preapproval is set, you know how much you will pay and when, as long as you stick at or below your preapproval amount.
FEWER ADD-ONS. Dealers like to convince you to buy add-ons: extended warranty, GAP insurance, etc. If the salesperson tries to sell you things other than the vehicle, you can feel more confident declining or accepting the offer because you know how much you can comfortably spend.
A LOWER RATE. Getting preapproved is often the best option when you are trying to finance a vehicle because it can help you get a lower interest rate on your loan. You know what interest rate you qualify for without the dealership trying to raise your annual percentage rate. Dealerships often raise their customers’ APRs, but they are not likely to convince you to take a higher rate if you can get a lower rate elsewhere. In fact, if the dealership wants to finance your vehicle, they will need to provide a better rate than your preapproval.
LESS TIME AT THE DEALER. You can cut to the chase when you know which vehicle you are looking for and at what price, and you are not relying on the dealer to find a loan for you. You spend less time negotiating and less time overall when you have a preapproved vehicle loan at Evergreen Park Schools Federal Credit Union. Just fill out the Loan Application COMPLETELY from our website and you could be approved within 24 hours! When you decide on the vehicle you want, just send us a copy of the Bill of Sale (most dealers will fax it to us) and we will take it from there. It’s a breeze!
Do not pay the high interest rates at the dealer. Check out the Credit Union’s great rates first!
THE FINE PRINT…
- AS SOON AS YOU WALK INTO THE DEALERSHIP TO MEET WITH A SALESMAN, BE SURE TO TELL THEM NOT (!) TO PULL YOUR CREDIT!
- You MUST verbally state this so they do not pull your credit!
- Dealers may “shop” you around to various financial institutions to try to get you the lowest rate available based upon your credit score.
- What you do not realize: Each institution pulls your credit and thereby your score is lowered with each pull!
- If you are not preapproved and then come to the Credit Union afterwards, we must pull your credit as well. All of those previous credit pulls will show up when the Credit Union pulls your credit report, thereby lowering your credit score. This will possibly change the interest rate you would have qualified for before you entered the dealership costing you money.
