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Should I Pre-Qualify or let the dealer??

firemartinez1980
Regular Contributor

Should I Pre-Qualify or let the dealer??

I am looking at a new GMC Truck....

 

Should I Pre-Qualify online with GM Financial or just go to the Dealer and let them "Shop" for a loan/rate?

 

 

Message 1 of 15
14 REPLIES 14
Sandman771
Valued Contributor

Re: Should I Pre-Qualify or let the dealer??

pre-qualifying is better for you especially if you have a CU or bank relationship. Now sometimes GMF has a great incentivized interest rate that could be attractive such as 0%. 

Also with GM make sure you don't qualify for suppliers special pricing. This is several thousands off MSRP and many empoyers get you qualified. Teachers firemen LEOs, large corporations (think fedex, Lowes, etc). Google GM Supplier. 

Starting Score: EQ497/TU496/EX 499
Currently: EQ611 TU637 EX 599


in the garden since 6/16/2021
Message 2 of 15
dunn2500
Frequent Contributor

Re: Should I Pre-Qualify or let the dealer??

unless your 760 or above usually good to go in with pre approved rate.....just gives you more leverage when negotiating term rate (and or confidence ) they will have to beat it  to get your financing and you dont have to say what that rate is necessarily up front.....

Message 3 of 15
Shooting-For-800
Senior Contributor

Re: Should I Pre-Qualify or let the dealer??

I would check with Cap One Nav prequal (SP) so you have at least an idea of where you stand.

Rebuild started in 2014  -  $100k unsecured credit in 2017  -  $400k unsecured credit in 2021.

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Message 4 of 15
Loquat
Moderator

Re: Should I Pre-Qualify or let the dealer??

It’s always best to get a prequal so you at least have an idea of where you’re rates should be unless you know that you qualify for tier 1 with a captive lender.

As for scores, you certainly don’t need a 760 or higher to qualify for 0% financing, such can be obtained with much lower scores.

As for incentives by way of suppliers or affiliation just know that inventory is SUPER tight right now and dealers have no motive to drop price. Lots in my area are holding MSRP and even above if it’s something that’s not and in short supply.

Before anyone says that a dealer has to give affiliate pricing let me be the first to tell you that they can. Read the conditions associated with such pricing and you’ll see that dealers can opt out if they like. There are also terms that govern situation of limited supply from manufacturers which also gives them grounds to not honor such pricing. The short of the long is dealers, when the manufacturer is the cause for limited supply, does not have to give any discount ACCEPT those that are covered directly by the manufacturer such as rebates, military, college grad, and as of late, emergency workers, or any of manufacturer discount (supplier/affiliate doesn’t count as such).
Message 5 of 15
Jmbamman
New Contributor

Re: Should I Pre-Qualify or let the dealer??

My wife and I are also in the market for a new truck. We actually pulled the trigger and ordered a new build. I tried a prequal with GMF expecting to see an APR, instead all it showed was a maximum monthly payment preapproval. I opened a savings account with PenFed for $5. Penfed members can prequalify for an auto loan after 90 days of membership. So I'm planning on doing that. Since our new truck build is expected to be at least 3 months out. Waiting for Penfed for a preapproval won't be too bad. At least I can see what APR we will qualify for before haggling with the dealership. We will see . Good luck !






Message 6 of 15
firemartinez1980
Regular Contributor

Re: Should I Pre-Qualify or let the dealer??

Didn't the Pre-Qual hurt your score overall or was it a softpull?

Message 7 of 15
Jmbamman
New Contributor

Re: Should I Pre-Qualify or let the dealer??

The GMF prequal was a sp. Came back with a 1200 some odd dollar per month max payment. Good grief I don't want that much of a payment!!


@firemartinez1980 wrote:

Didn't the Pre-Qual hurt your score overall or was it a softpull?


 






Message 8 of 15
dunn2500
Frequent Contributor

Re: Should I Pre-Qualify or let the dealer??


@Jmbamman wrote:

My wife and I are also in the market for a new truck. We actually pulled the trigger and ordered a new build. I tried a prequal with GMF expecting to see an APR, instead all it showed was a maximum monthly payment preapproval. I opened a savings account with PenFed for $5. Penfed members can prequalify for an auto loan after 90 days of membership. So I'm planning on doing that. Since our new truck build is expected to be at least 3 months out. Waiting for Penfed for a preapproval won't be too bad. At least I can see what APR we will qualify for before haggling with the dealership. We will see . Good luck !


I was approved for auto loan same day i opened a $5 or $10 pen fed acct...was a hard pull though

Message 9 of 15
Jmbamman
New Contributor

Re: Should I Pre-Qualify or let the dealer??


@dunn2500 wrote:

@Jmbamman wrote:

My wife and I are also in the market for a new truck. We actually pulled the trigger and ordered a new build. I tried a prequal with GMF expecting to see an APR, instead all it showed was a maximum monthly payment preapproval. I opened a savings account with PenFed for $5. Penfed members can prequalify for an auto loan after 90 days of membership. So I'm planning on doing that. Since our new truck build is expected to be at least 3 months out. Waiting for Penfed for a preapproval won't be too bad. At least I can see what APR we will qualify for before haggling with the dealership. We will see . Good luck !


I was approved for auto loan same day i opened a $5 or $10 pen fed acct...was a hard pull though


Yeah I read you can apply immediately after joining but I didn't want to apply since we're a few months out. I'm trying to stock pile some cash to pay off my other auto loan.

 

If you don't mind me asking, what rate did you get with Penfed? Looks like their lowest for new auto is 2.38% for 72 month loan






Message 10 of 15
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