I am planning to buy a first used car, i applied for a loan with my CU. They took all my details and provide the APR at which they can lend me.
They asked me to provide copy of latest Pay stub, DL & purchase and sale agreement from Dealer.
Now if i dont the have the check from CU why will a dealer provide me a purchase and sale agreement. I believe they will provide purchase and sale agreement only if i am paying the dealer and making a purchase.
Please provide your thoughts. Thank You
Once you find the car you want the dealer will start asking questions on how you intend to pay for it. You can then inform them that you have a pre-approved loan through your CU. The dealer will probably offer to run your credit themselves to see if they can beat the financing offer you have in hand. Depending on your credit profile and the CU's offer that may or may not be possible.
If the CU is local then the dealer will probably be able to complete the paperwork back and forth with them and the sale is done (assuming you keep and use the CU loan). If the dealer does not work directly with the credit union then they will provide you with the contract info that you will need to forward to the CU for the completion of the loan. If this is your first time ever car buying experience, or if you are not confident in the process, you may want to bring along a friend with more experience to help you and keep an eye on the process. There are a number of options and add on's that most dealers will offer as part of a sales contract. Some may be worthwhile and others not so much. It depends on the specific deal and auto.
I have bought a number of cars in my lifetime. But I also know I am not the best negotiator and I am subject to falling for a good sales pitch. So I always bring a friend to keep me and the deal in line.
When I was looking to use my local CU for the loan they would require an "Option to Contract" that had all of the pertinent information. Once they had that it would take them about 2 hours to have the check ready.
I ended up using the dealer financing because they beat my CU rate