Reply
Contributor
BlueHusky
Posts: 193
Registered: ‎04-01-2012
0

How does Auto Finanacing Work??

I'm buying my first car, and this probably seems like a dumb question..but here goes:

 

How does auto financing work? I understand the finanacial part, I'm actually talking about the physical part: do I need to have picked out the exact car I want and have the purchase agreement before I go to get finanacing at my bank? If I'm using my trade in as the down payment, do I need to have my trade in offer as I go to the bank, or do I just estimate?

 

I really don't get it...I'm buying from a place an hour from my bank. Do I have to drive there, get trade-in/purchase price agreement, drive back to the bank, apply for the loan, then drive back to the dealership?? Can I get the loan BEFORE I go car shopping?




Starting Score: 583 (CreditKarma, 2009)
Current Score: 783 (Walmart Free FICO, March 20, 2012), 774 (Equifax, BoA Pull, 2/20/13)
Goal Score: 800+


Take the FICO Fitness Challenge
Regular Contributor
remarc
Posts: 170
Registered: ‎03-05-2012
0

Re: How does Auto Finanacing Work??

I'm not expect. However go to your local credit union & get pre approved for auto loan. Then u have 30 days to get the car u like and / or go the dealership & haggle with them to get your APR lower & with better terms than your CU loan. I find doing this gives u A: idea of how much u can spend & what your monthly repayments & APR looks like & B: u have more power going into the Dealership & can tell them to go do one if they try to rip u off!

Always do LOTS of research. Have idea of the value of the car your buying - privately & trade value.

KNOW your Fico scores before u go. Some company's use enhanced Fico scores & others use FICO. So know what your scores are so the dealer or banker doesn't try to convince u that your scores are not good enough to get a better rate.


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}