Auto Loan Preapproval/Loan Shopping Questions

[betterdays2011]

We are planning on purchasing a new (or possibly) newish used car this spring. It has been years since our last car purchase and I don't remember much about the process. We belong to a credit union though our last auto was financed through the dealer financing at a pretty good rate. Based on the info I have now, it looks like the rates are currently lower at our credit union. So my questions are: Do you recommend getting preapproved for a loan before you actually go car shopping? Will that preapproval hurt our credit score enough that we should hold off? Current scores are approximately 715-720 (always pay on time but high credit utilization). Income is about $160K. We are looking at replacing an aging minivan (paid off years ago). A second auto loan is still active but we will pay off before we buy the car. Should we do that before we go through the preapproval process? Thanks!

[Anonymous]

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@betterdays2011 wrote:
We are planning on purchasing a new (or possibly) newish used car this spring. It has been years since our last car purchase and I don't remember much about the process. We belong to a credit union though our last auto was financed through the dealer financing at a pretty good rate. Based on the info I have now, it looks like the rates are currently lower at our credit union. So my questions are: Do you recommend getting preapproved for a loan before you actually go car shopping? Will that preapproval hurt our credit score enough that we should hold off? Current scores are approximately 715-720 (always pay on time but high credit utilization). Income is about $160K. We are looking at replacing an aging minivan (paid off years ago). A second auto loan is still active but we will pay off before we buy the car. Should we do that before we go through the preapproval process? Thanks!

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Define car shopping?

Most cu pre approvals last 30 days.

Do all your homework, find which car you want then secure financing/pre approval

[Marcin1287]

Depending on a car you want. I am in a market right now as well. Most of the dealers these days have .9/ 1.9/2.9 financing. With your scores assuming you have no negative marks you will be able to get those rates. I went to Toyota last week and put a deposit down on my car which will come first week of April. I was approved for 1.9 for 60 months. My scores were 770 but as long as you are in range 700-720 you should be able to get it.

[Anonymous]

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@Marcin1287 wrote:

Depending on a car you want. I am in a market right now as well. Most of the dealers these days have .9/ 1.9/2.9 financing (on specific makes and models). With your scores assuming you have no negative marks you will be able to get those rates. I went to Toyota last week and put a deposit down on my car which will come first week of April. I was approved for 1.9 for 60 months.(they are going to hold a promo rate on a vehicle order? many places do not- youget the rates and promotions that exist at the time of the deal) My scores were 770 but as long as you are in range 700-720 you should be able to get it.

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It is always i a good idea to see what rate you can get from outside financing. In some cases you maybe loose some rebates if you take the promo rate, getting a 2.9% from a CU instead of 1.9% but gaining $1,500 in rebates may make more sense.

[striders]

Keep in mind that in order to get the ADVERTISED MFR RATE (0.9%, no money down, etc.), you MUST FINANCE through the MFR financial institutions, such as American Honda Finance Corp, US Bank (Volvo), etc.

Read the fine print on these promo rate / lease from their website.