Pre Approval for an Auto Loan?

[Rhett&SarahsMom]

Ya know kinda like getting a pre approved amount for a mortgage before shopping for a house? Is this something that is done? and if so how does one do this?

I just figure it would give the buyer(me) more leverage when it comes to shopping for the best price on a particular car.

 

[Lanissa86]

I got one from USAA.

 

[Rhett&SarahsMom]

Quote:
So this is something that is done. Cool.
I have to start looking into this.

Thanks for the reply

 

[pips&peeps]

Yep, can be done.

I think your best bet nowadays is through a credit union though.

 

[debilorrah]

I get them in the mail all the time - pre-approved for $25K at this or that dealership.

 

[preppy*hippie*chick]

I sold cars for years. You have to watch, keep running your credit and it drops your score. Those preapproval notices do too. I finally got my name off their list. It's in the delerships best interest to get a good rate. If they run your credit, they get on the phone with different banks. Your credit is only run once as opposed to shopping around. If you have bad credit it might be a good idea, other than that I don't see the point.

 

[The Poultry Peanut]

Rhett&SarahsMom :

Ya know kinda like getting a pre approved amount for a mortgage before shopping for a house? Is this something that is done? and if so how does one do this?

I just figure it would give the buyer(me) more leverage when it comes to shopping for the best price on a particular car.

no loan no loan see sig below go to web site no loan no loan....

 

[NancyDz]

My credit union does pre-approved loans for vehicles. The point of it is that you have more leverage with the money in hand (so to speak) than you do if the dealership shops around for you.

Those pre-approval letters or "checks" they send in the mail are just a scam to get you in the door. They still have to shop you around, those are just sent using your mailing address , nothing more. Sure anyone is pre-approved... read the fine print on the offer. They'll sell anyone a car.... it's just that if your credit sux you'll pay a much higher interest rate on that "pre-approved loan" than you will if it doesnt.


The best thing you can do is do your homework on car values, know what you are shopping for.

 

[Tala]

We got "pre approved" for a mortgage at one bank and they offered us this TERRIBLE deal.

We walked in another bank and got an AWESOME deal.

I don't think the pre-approvals mean anything.

 

[English Chick]

Agree pre approvals mean nothing...............