How does this work?? I honestly dont know. Ive never not gone thru a dealership.
My current car loan is with Navy fed, but its a refi loan. I want them to have my next car loan from the start, how does that work? YOu get preappoval first from them, and they issue a blank check, and you go buy the car?? Im totally new to buying a car this way...
I DO NOT want to go thru a dealship for them to find my finacing, and have umpteen HP's on my credit. Id rather have Navy HP me once on EQ, and be done with it.
Can anyone shed a little light for me on how the process works? I know dealerships hate it when you have preapproval already, and dont know what im supposed to do or say to them.. Im in no huury to do this, like 2 yrs from now, but its something that ive been curious about, Im just waning to get information and advice so I can be knowledgable on this.
Thanks for any input!
@Anonymous wrote:
I just bought my first car using a NFCU blank check and it was so easy and the best decision I ever made!! I was nervous regardless but I'm happy that I decided to do it with NFCU.
First (of course) you apply (i did online) and put in the amount you want. After you get your approval (I was instantly approved and they sometimes approve you for more then you ask and it gives you a option to get more if you want or the amount you asked for) you don't have to use the full amount of the check at all! When you apply Navy's system will you give your monthly payments based on if you use the full amount of the check but you don't have to and after you use the check and Navy gets the check back you will get the promissory note in the mail that will show the real amount you used and your monthly payment amount. You can finance the car, TTL, warranties etc as long as the total is less then the amount on the pre approval and the LTV is 125% I believe with Navy. you will be Fed Ex'ed the draft check and paperwork and that normally comes in 2 business days (or you can pick it up at a branch) You then take it to any dealer and buy your car! You just want to make sure the dealer fills out the check EXACTLY as NFCU indicated. It was very easy and simple for me. The dealer had no problems taking the NFCU draft check, never pulled my credit or even asked for my social. When you apply for Navy, it's going to ask you what term you want (and if you want new/used car) so you will pick all of that during the application process. Say when you applied you selected that you were going to buy a new car at 60 months. They give you the rate based off of that but then say once you got to the dealership you found a late model used car that you like and now you want to finance it for 48 months, you would have to call Navy to change it and find out your new rate. The rate changes based on whether the car is new or used and Navy only gives you the rate of what you pick and the paperwork they mail to you only gives you that one rate as well. The pre approval check doesn't list a rate or term on it only the amount the check can be written up to. So you would just have to call them to change the rate or the status on the car (new or used) and get the new rate (if that makes sense) I didn't change anything on mine so I don't have any experience but I asked what I would do if I changed my mind on the type of car or term I wanted and they told me to call.
The first thing I learned was never tell them (the dealer) that you have a pre approval check (or the amount) until you are done haggling over price. If they do give you any trouble over the pre approval check or tell you they have to pull your credit, walk out and find another dealer (with a pre approval you have that power) Navy also works with a few dealers that are in their car buying program. I had no clue till I got there but my dealer was apart of their program......they are more knowledgable about how Navy's program works. The dealer doe NOT have to pull your credit of you have a pre approval at all!! (Unless you want them to try to beat Navys rate) I was happy with Navys approval and didn't not wnat them pulling my credit and I told them that. They never tried and never asked for my social! The Finance guy even agreed with me that it's a good idea to stay with Navy and build a relationship with them! If you are sure you are not going to want the dealership pulling your credit then freeze your reports before going in.
So if you do go to any dealers who give you any problems walk away! And find another. You will get a dealer willing to work with you because no matter what they want a sale. Navy makes the process very very easy. Apply, get approved, receive check and paperwork in the mail 2 business days later, pick out a car, buy a car, drive it home! What I did was look all over the Internet till I find the car I liked. Went there and test drove those cars and haggled a little till I got my favorite car with the best price. After you buy a car with Navy the preapproval check gets cashed pretty quickly! I bough my car in the middle of March and 2-3 days later the pre approval was cashed through Navy's System after that happens you will see the new auto account online and you will receive your promissory note/security agreement that you have to sign and Mail back but the process is so simple!! Like I said this is my first car that I ever bought so I have never done dealer financing to compare it to but this process was so simple and not stressful that I am always going to buy a Car like this. I had such a great experience with Navy that I will always use them to finance my card! Great experience! Just know when you have the pre approval you have the upper hand when it comes to the dealer!!
OMG....first, let me say thank you so much for taking the time to type all that out, and your experience!!! I know it took you a few minutes to do that, and i really appreciate hearing your input and experience. Thank you so much!!