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Credit Union auto pre approval confusion

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Anonymous
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Credit Union auto pre approval confusion

Hi all,

So I am new to credit unions. I found a car and contacted my union for pre approval. The loan officer called me, filled in an application, pulled my credit (EX auto 751). I asked him what terms and rates, he said he can't tell until I have a specific car in mind. Even then, he wants a bill of sale prior to telling me my proposed rate. 

 

The dealership has a 2.9% subvented on CPO vehicles which they say I should qualify for and want to run my credit just for the manufacturer capital service. 

 

When I go to the dealership, what do I say? I'm pre approved by my CU but for what and how much? or is it going to be I finalize everything, then send the bill of sale to the CU who gives me the terms then and there, which I then ask the dealership to beat? I'm so lost right now!!

 

Please help, thank you!

 

Edit: 

My CU offers 2.99 on used vehicles, and 0.25 less if I auto pay so really looking at 2.75 best case scenario.

2 REPLIES 2
Loquat
Moderator Emeritus

Re: Credit Union auto pre approval confusion

Most credit unions or lenders as a whole will base rate on vehicle year, make, model, and mileage. This is normal.

If you want to get a price for a potential vehicle without having to go to the dealership and the pressure to purchase, try reaching out to the internet sales manager of the dealership. Most dealership has such a person or at least a BDC (business development center) that can get you a price.

Don’t mention that you’re rate shopping. Just express interest in the vehicle and ask them if they can provide you with an out the door price and any associated fees that accompany the purchase (i.e. doc fees).

Most will give you an answer. If the price seems like something you can live with, feel free to ask for a purchase order and let them know you’re seeking financing elsewhere.
Message 2 of 3
4sallypat
Valued Contributor

Re: Credit Union auto pre approval confusion

You have a choice - do you want the dealer to run your credit to see if they can beat your CU ?

Or did you just want to go with the CU financing only which will save you a second HP.

 

Either case you will need a purchase agreement which you can take to your CU for final rate determination.

 

You mentioned CPO - cars usually are marked up significantly on these so you should negotiate with the Internet sales manager before stepping foot into the dealer.

 

Also, have you checked Capital One Auto Navigator ?  They do a SP and will tell you how much you qualify for and at what rate using the VIN.

Message 3 of 3
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