Apply for loan first online or talk to dealership first?

[Stiga9]

I'm definitely new to this. I see some rates online (DCU, SunTrust, etc) I can get a 1.99% rate assuming I have excellent credit.  I am looking to buy a new car. 

Do I apply first online/phone for the bank(s) and see if they will approve me for what I want? Or do I go to the dealership (Jeep) first and see what they give me first, THEN I go online and apply to see what they give me? Thanks.

[09Lexie]

Do you have a relationship with a CU? Is the make/model you are looking at currently offering special financing ie 0 % APR?

imo, it's always best to have your financing before going into a dealership.  I do not like the idea of having my credit ran multiple times when all I need is one hp. 

[Bluedog23]

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@Stiga9 wrote:

I'm definitely new to this. I see some rates online (DCU, SunTrust, etc) I can get a 1.99% rate assuming I have excellent credit.  I am looking to buy a new car. 

Do I apply first online/phone for the bank(s) and see if they will approve me for what I want? Or do I go to the dealership (Jeep) first and see what they give me first, THEN I go online and apply to see what they give me? Thanks.

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Applying online can be a bit tricky depending on who you apply with. As stated above, you could end up with several inquiries . Even though inquiries within a short time period SHOULD count as one, sometimes it doesn't work out that way because of coding. Online application might work best with a credit union such as DCU. I applied with them (two hard pulls--one for membership and one for the loan--that's just how they do it.) and was approved for their best rate-1.74. I believe their min score for best rate is 685, but if you search this forum you can find out for sure. So, if your score is there or above and income and DTI are good, you would at least have the bird in the hand so to speak. I didn't bother having dealer try to match because I couldn't take advantage of the cash back for my vehicle if I took dealer low rate financing. With an interest rate that low, it was simpler for my transaction to keep dealer financing out of the equation. That's just me though.

There's are really good sticky above about negotiating and financing that might be helpful. Good luck in whatever you decide.

[Stiga9]

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@09Lexie wrote:

Do you have a relationship with a CU? Is the make/model you are looking at currently offering special financing ie 0 % APR?

imo, it's always best to have your financing before going into a dealership.  I do not like the idea of having my credit ran multiple times when all I need is one hp. 

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I don't have a relationship with a CU. The Jeep dealerships are not having special financing. Their lowest rate is 4% right now. Thanks for your advice.

[Stiga9]

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@Bluedog23 wrote:

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@Stiga9 wrote:

I'm definitely new to this. I see some rates online (DCU, SunTrust, etc) I can get a 1.99% rate assuming I have excellent credit.  I am looking to buy a new car. 

Do I apply first online/phone for the bank(s) and see if they will approve me for what I want? Or do I go to the dealership (Jeep) first and see what they give me first, THEN I go online and apply to see what they give me? Thanks.

---

Applying online can be a bit tricky depending on who you apply with. As stated above, you could end up with several inquiries . Even though inquiries within a short time period SHOULD count as one, sometimes it doesn't work out that way because of coding. Online application might work best with a credit union such as DCU. I applied with them (two hard pulls--one for membership and one for the loan--that's just how they do it.) and was approved for their best rate-1.74. I believe their min score for best rate is 685, but if you search this forum you can find out for sure. So, if your score is there or above and income and DTI are good, you would at least have the bird in the hand so to speak. I didn't bother having dealer try to match because I couldn't take advantage of the cash back for my vehicle if I took dealer low rate financing. With an interest rate that low, it was simpler for my transaction to keep dealer financing out of the equation. That's just me though.

There's are really good sticky above about negotiating and financing that might be helpful. Good luck in whatever you decide.

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Thanks. My TU FICO (from Discover) is at 707. Do you think that will give me the best rate at DCU? I've read elsewhere on here that 685-ish (as you said) is the lowest you need for the best rate for DCU. what is the 685? Is that 685 EQ FICO they want?

[Remember0]

Yeah, DCU pulls EQ so they're looking for EQ FICO to be above 685 for best rates. Honestly, if you don't have any extra baddies on EQ, I think you'll be fine.

[Stiga9]

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@Remember0 wrote:

Yeah, DCU pulls EQ so they're looking for EQ FICO to be above 685 for best rates. Honestly, if you don't have any extra baddies on EQ, I think you'll be fine.

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I have zero baddies across the board. My AAoA for credit is 7 years. Hopefully i'll get the best rate. I am asking for a $42,000 auto loan. Never had a car loan before. Would the FICO requirement be higher? thanks.

[Bluedog23]

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@Stiga9 wrote:

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@Remember0 wrote:

Yeah, DCU pulls EQ so they're looking for EQ FICO to be above 685 for best rates. Honestly, if you don't have any extra baddies on EQ, I think you'll be fine.

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I have zero baddies across the board. My AAoA for credit is 7 years. Hopefully i'll get the best rate. I am asking for a $42,000 auto loan. Never had a car loan before. Would the FICO requirement be higher? thanks.

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I'm pretty sure the amt you can be  approved for will depend heavily on your DTI and your income. Even with high FICO scores, how much you bring in and owe out could limit your loan amt. So, if you have the income to support that much car--go for it! Highly recommend DCU.Just used them based on recommendations on this board. Very simple process. Applied for membership FIRST, was approved, and then the PreApproval for auto loan popped--actually for way more than I needed. YMMV. 

[Stiga9]

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@Bluedog23 wrote:

I'm pretty sure the amt you can be  approved for will depend heavily on your DTI and your income. Even with high FICO scores, how much you bring in and owe out could limit your loan amt. So, if you have the income to support that much car--go for it! Highly recommend DCU.Just used them based on recommendations on this board. Very simple process. Applied for membership FIRST, was approved, and then the PreApproval for auto loan popped--actually for way more than I needed. YMMV. 

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 Great advice, everyone. Can't wait! thanks. Also and just to be sure, DCU is Digital Federal Credit Union?

[Bluedog23]

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@Stiga9 wrote:

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@Bluedog23 wrote:

I'm pretty sure the amt you can be  approved for will depend heavily on your DTI and your income. Even with high FICO scores, how much you bring in and owe out could limit your loan amt. So, if you have the income to support that much car--go for it! Highly recommend DCU.Just used them based on recommendations on this board. Very simple process. Applied for membership FIRST, was approved, and then the PreApproval for auto loan popped--actually for way more than I needed. YMMV. 

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 Great advice, everyone. Can't wait! thanks. Also and just to be sure, DCU is Digital Federal Credit Union?

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Yes.