How to get approved for a vehicle before going to dealership

[Society1]

Im currently interested in a vehicle that's out of my home state. And don't want to fly there before knowing I can get the car. Is there any way to apply and get approval and then take it to the dealership. I've heard capital one auto navigator is it good or any other alternatives?

[coldfusion]

Yes, it's a common practice.   tl;dr you get an approval that locks in your terms including the loan length and rate along with a cap on the amount of the loan, to give an example say a new car 48 month loan at 6.49% for up to $35,000.     

Shop around at banks and credit unions for whomever has the best rates that you want to do businss with and decide who you want to apply with.   When you have your approval you contact the dealer and once you negotiate price you advise you've already arranged for financing with that bank/CU and their loan officer will contact them to iron out all the details including what everyone needs to finalize the loan and title the vehicle correctly.  

[Society1]

So you are saying use the capital one auto navigator?

[noonway]

Yes, my wife and I just purchased a used vehicle in Michigan and live in Kentucky. We used Capital One Auto Navigator, got a preapproved rate and price, called the dealer to let them know we were coming, flew up, signed the paperwork, stayed overnight in a hotel, and drove the vehicle home the next day.

All in all, it was a great experience with Capital One.  The dealer, not so much, and it was quite a hassle dealing with out-of-state paperwork but YMMV.

[dunn2500]

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@Society1 wrote:

Im currently interested in a vehicle that's out of my home state. And don't want to fly there before knowing I can get the car. Is there any way to apply and get approval and then take it to the dealership. I've heard capital one auto navigator is it good or any other alternatives?

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have done this may times, it works same as any car deal.....TTL might be a bit different but purchasing the car is the same

just get something in writing either texted or emailed so you have documentation of the price, financing can be done thru them or you bring it with.....I have brought a check from a credit union and used their in house cap lender and done both at same time when they beat my CU rate......

was in the dealership maybe 30-1hr tops..the whole deal is pretty much done you just need to sign...smooth as silk except for driving back home 400 miles, lol

its very common and happens every day

[4sallypat]

Easy & common these days.

Just note that taxes may have to be paid 2x if the selling state requires it and your state when you register it.

I have used my CU pre-approval letter to see if the dealer can beat it.

[FicoMike0]

I've done it in the past. Don't let them pull some double tax thing on you. Check with home state first, that's where you'll have to pay tax.

[dunn2500]

have done out of state tax...

my tax rate was higher than where i purchased, so i paid the difference at my local DMV

some out of state dealers will do your out of state reg (i.e. AZ was 5.9 and CA was 10.25 so I paid the balance between them)

if your state has a lower tax rate than where purchasing I am not sure how you will be credited.....

also some states do tax credit on trades, mine didnt so I had to factor that in as well

just about any way you can buy a car has been done so the info is out there.....figure out the math and proceed accordingly