Dumb auto loan question. Do I need a down payment for an auto loan?

[ori68]

Do I need a down payment for an auto loan? I plan to get my own financing before I get to the car dealership thru my credit union. They are offering 1.6% apr for 60 months as their top tier, and 2.2 as there second. I’m sure I can get the top, but the second is not too bad. While at the dealership I will see if FORD has any offer that can beat my rate credit union. My questions is would I need to have a down payment in order to qualify for my credit union? Generally when we get financing before we get to dealerships, is down payment a factor? 

[DevotionToU]

Your phrasing of the question makes it seem like you will not be making a down payment.  Typically with Pre approved loans they finance the total amount of the car, but you can still make a down payment at the dealership so the total amount of the loan would be lower.  I imagine you could discuss this when you try to obtain the loan from your CU.  If you have a general amount that you think you would spend, you can try to get pre approved for that amount, even if the car is higher (If you are putting a down payment).  

[Remember0]

Down payment is a factor esp. for subprime scores. But it looks like you're at 700+ generally. You won't be harmed because you don't have a down payment. Be sure to get quotes from outside like your local CU (or a place like BofA/DCU) before going to the dealer!

[CAnNY]

i was gonna say it depends on the credit union since I was offered a loan a yr ago with a down payment required, but I was at like a 535 FICO, so it could be due to my score being sub prime at the time. 

[ori68]

thanks all. I was not really planning on putting a big down paymant, i know there is a recomanded 10% down. I will see if i can get around this. I was actually just planning to send bigger paymants then needed.

[Remember0]

You'll have no issues.

Apply first to a place like BofA or DCU or a local credit union/bank! and when inputting car purchase price, remember to add enough to cover taxes and dmv fees (6% sales tax and ~300 dmv fees in my state).

[Anonymous]

Hi, 

I have a similar scenario:

I was just approved with DCU for 25k (what i asked for). The car I really want now is at 30k (+taxes etc).... I do have enough down to cover the difference + taxes. Would it be ok if I ask the CU for an additional 5k, then if approved, go to dealer and say: “I have my own financing that covers 30k and I can pay $3,200 in cash(estimating taxes).”   

Is this the correct way of doing it? Would it be better to offer CU the 3,200 down payment?

[Remember0]

I think you have the right way of doing it as laid out in the first paragraph. When you speak with them (DCU) just say the car I'm looking at buying is 33.2k, I have a 3.2k dp, was looking to see if you could up approval to 30k? Then go to the dealer and say I have 30k w/ DCU and here's 3.2k cash.