@Boldilocks wrote:
DH and I are getting a used car from a very reputable dealership in the area (A+ BBB rating) and my husband's boss is good friends with the owner and has promised us a deal.
It's not a huge dealership, not millions of minivans to choose from - but from what they have we've settled on a 2006 town and country, listed at $8,995.
Last week we got pre-approval from our CU for $9000, good for 60 days.
So, we went to look on Saturday, the owner wasn't there but we did get to look at the town and country. DH called the owner today, we can't see him until *this* Saturday - at which time we want to buy the car and hopefully negotiate it down a bit.
How does it work with the pre-approval? If we agree to buy the car on Saturday, the bank is closed until Monday. And then it would be the following Saturday before we could actually go and pick the car up. I really don't want this to drag on 2 more weeks! I have the VIN number of the car - would they ever give us a check to go and purchase the car even though we don't know if we're going to need the full $9000?
Your pre-approval status depends on several things. Pre-approved means this is what you can buy up to. However it isn't an actual approval. With auto loans, you have documents to sign before its official, an agreement on terms and such. I would suggest signing them and turning it into a full approval before you go to the dealership, as a pre-approval can be rejected by your bank, but an approval is already approved..Thus making you a strong buyer.
About the check process. It depends on your bank, or CU. Some will give you a check to go to the dealer, some will do an electronic draft. But if this is a small dealership, will probably be a check option.
How this works with most dealerships, not sure about how small the one you are working with is, or if it is Manufacture branded like say ... Benson Chevy, or Williams, Toyota of California.You go to the dealer pick a car negotiate an OUT OF DOOR PRICE. You want to see the bottom line to be able to not come out of your pocket the bottom line price must be 9000 and below. Do not negotiate without seeing the bottom line price first (this is the price with everything such as title, tax, doc prep EVERYTHING), as this will save you more money then if you negotiate off of sticker price. Because there are all kinds of fees, title, doc prep, tax, dealer fee, etc.
The way the check works is you get your price, if it is less then 9000 you write the check for the price exactly and then sign a purchase contract and you walk with your new car. Several things will happen when you leave. Within a few days the dealer will get the check approved and the 'deal will be funded'. OR, the check will be rejected, and you have to obtain alternate ways to pay for the loan, or bring back the car..
That is why I suggest turning your preapproval into an actual approval before you go shopping as you want to make sure you do not have to bring back the car, that is always painful!
Sorry for the dumb question - it's just that we have family coming next week and I would like to get this process more streamlined if I can.
No question is dumb we are all learning, heck I need help with Mortgage advice and credit card ratios! haha! Today is Sunday.. did you get your new car? If not yet, good luck!
