@EaglesFan2006 wrote:I have a Cap One pre-qual offer. Of course I'd like to see if I can get a better rate, and i know inquiries only count as 1 hit within the window to rate shop. However, could a credit inquiry derail my Cap One pre-qual?
For example: I'd like to see what rate my CU offers. They do a pre-approval that's good for 30 days, but they do the credit check right then. I know Cap One will do the hard inquiry when the application is submitted at the dealer. So if I apply from my CU ahead of time, my score may take a hit before I get to the dealer. When they then run Cap One, my offer might change. With that in mind what's the best strategy to get the best rate? Do the pre-approvals ahead of time, or go through financing at the dealer?
I honestly don't think that Capital One will rescind their offer or raise their rates because you are loan shopping. After all, it's expected. I suggest to wait until you definitely know what car you want and have narrowed it down to a few dealers that offer it. Then when you are ready to wheel and deal, apply for the loan at your credit union and anywhere else you feel comfortable before going to the dealer. Once you know what rates you are approved for, you can decide if you want to let the dealer run your credit. This is exactly what I did, and the dealer actually ended up getting me a better rate than DCU (at the time), so I took it. But it really helps to let them know that you are ready to buy and that they have to make it worth your while to go with them. The only thing I'd add is that if you don't think you'll go through dealer financing, and tell them you already have a loan lined up, they might not give you as many discounts since they won't be making money off of you through financing. I was careful about what I told them to try to negotiate the best deal. Also, I negotiated by email before stepping foot in the door, and held them to their offer when I finally showed up.
