Preapprovals vs Auto Loans - Need Help!

[Anonymous]

Hi all, 

Long story short I've wanted a Jeep Rubicon Unlimited forever and my local dealership has the exact model I've been drooling over for years.

I recently cleaned my credit and my score jumped 80 points from 640 to 720 - but not all of my Fico scores have updated, specifically my Fico Score 8 for auto loans. They were last reported on 2/25/17, which is over a month ago and I have done significant work to improve my numbers. Everything else is well over 700.

Naturally, I want to buy the Jeep so I was preapproved by Nationwide for a $50,000 loan and the payments were in the $650 a month range, which for me is affordable. My question is more about preapprovals and the loan process. How much can/will my monthly payments differ from the amount Nationwide provided? If they wind up any more than the $650, it's a no go. Truthfully I don't want another hard pull on my credit unless this is "the one."

Does anyone have any experience with this type of process? Any help would be greatly appreciated.

[Anonymous]

It just really depends on if you have a specific lender you want to finance with but for the most part you could search specific banks and see if they have pre-approval options that don't pull your credit

[Anonymous]

@Anonymous wrote:

It just really depends on if you have a specific lender you want to finance with but for the most part you could search specific banks and see if they have pre-approval options that don't pull your credit

---

I've already been preapproved by Nationwide with no credit pull. The question is whether or not the estimated payments will be similar to what they offered.

[Anonymous]

---

@Anonymous wrote:

@Anonymous wrote:

It just really depends on if you have a specific lender you want to finance with but for the most part you could search specific banks and see if they have pre-approval options that don't pull your credit

---

I've already been preapproved by Nationwide with no credit pull. The question is whether or not the estimated payments will be similar to what they offered.

---

it should but you could call and talk to a csr to get a better answer

[Anonymous]

If you want the best rate the reality is your going to have to take an HP or two.  Do you know the rate for Nationwide?  Lenders are not going to give you a solid APR off a SP normally.  Personally I always suggest the credit unions because they are rarely beat on APR unless its a factory sponsored incentive rate.   A couple of extra HPs all with the catagory of auto loan are not going to hurt you in the short or long term.  I was happy to take the HP that cut my APR in half and saved me thousands over the life of the loan.

[Appleman]

$50,000 for 6 years (72 months) at 0% will run $694.44

$50,000 for 7 years (84 months) at 3% will run $660.65

By looking at the above calculations they are looking at 72 month loan minimum.

Like others have stated, find out the actual terms the pre-approval is offering. Also, will there be a HP for final approval?

Have you tried the Cap1 Auto Navigator to see what type of rate you pre-quailfy for? It is a SP.

Currently gas is as cheap as it has been in some time. Reflect on your budget and make sure you can afford gas. IF you are currently in a car, your gad budget could increase 3X to 4X if gas prices rise. Also, have you gotten an insurance quote for full coverage. Often when people switch from liability to full coverage they have sticker shock all over again.

Finally, Rubicon is a great vehicle. Reach out to multiple dealers in you area.

Good luck, let us know what you do.