5 Reasons to Secure a Loan Before Visiting a Car Dealer

You’ve decided it’s time for a new car. You’ve even started to scan the websites and can’t wait until that new set of wheels is safely in your driveway!

Then you think about going through the financing process with an auto dealer … and, suddenly, panic sets in.

Shopping for a new car doesn’t have to be stress-inducing. Arrange financing through a credit union before you head out to the dealerships to save money. Here’s how:
 

1. A better interest rate. Higher credit scores mean lower interest rates, right? So, check your credit score—either through your own financial institution or by ordering a free credit report. If it’s not where you want it to be, maybe it’s worth putting off your car purchase until you can improve your credit score and qualify for a better rate.

2. Loan terms that fit your budget. Find out how much you can afford and compare loan offers by using a car loan calculator. Adjust the terms to see how they affect your monthly payment. Choose something that works with your budget.

3. Better selection. Because you come with your own financing, you’re not dependent on purchasing from one dealer. You gain the freedom to choose a vehicle from any dealership.

4. Simplified negotiations. With a preapproved loan amount, you’re in a better position to negotiate on the overall cost of the vehicle, as opposed to shopping to fit your monthly payment needs. The latter may give you the desired monthly payment but may result in a deal that costs you more over the life of the loan.

5. Less paperwork. Complete the financing before you head to the dealerships. It will mean less time and paperwork to fill out once you’re ready because you’ll have already done most of the work!

Keep in mind that most preapprovals are good for a limited time—usually 30 days.

Mountain America Credit Union is ready to help you roll around town in the car of your dreams. Contact us today!