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When should I start applying for a car loan to get a pre-approval?

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Anonymous
Not applicable

When should I start applying for a car loan to get a pre-approval?

I cusom ordered a vehicle that is scheduled for delivery on June 21. I would like to secure financing before walking into the dealership (since I've heard that's a good idea because it makes it harder for the dealership to try and screw you over with financing). Anyone have any idea when I should start applying?

Message 1 of 8
7 REPLIES 7
sccredit
Valued Contributor

Re: When should I start applying for a car loan to get a pre-approval?

Most approvals are good for 30+ days so you should be ok now.

Message 2 of 8
Loquat
Moderator Emeritus

Re: When should I start applying for a car loan to get a pre-approval?

Like the previous poster mentioned, most approvals are good for at least 30 days with some stretching out to 45.  I don't know what kind of vehicle you ordered but also check to see if their captive is offering any kind of financing that would be beneficial to your credit profile and income.  

 

As for getting screwed by the dealer...it can never happen unless you allow it to.  An educated consumer is the best.  You know limits and as my wife would say "know when you pick up your purse".  Don't be pushed or bullied into something you don't want...regardless of what it is...car, house, food, you name it.   You are the President, CEO, COO and any other credentials that fit, of your life...don't do anything you don't want to!

Message 3 of 8
Anonymous
Not applicable

Re: When should I start applying for a car loan to get a pre-approval?

Since you know that June 21st is when the car will be ready for delivery you have plenty of time.  What I did and would reccomend is to wait until about a week before the delivery, apply with a good credit union to have financing secured.  That way if there is a delay in delivery of the car you don't end up having to reapply etc for the 30 day limit that just about every lender has. I would also check and see if there are any finance or rebate incentives before you go to the dealership and then you can let them (if you want) try and beat the credit union financing.  FYI dealers no longer make much money on the actual car sale, they get their money from incentives from the factory for moving metal and on average they make just under 2k in the finance office marking up interest and selling protection plans.  The best way to not get ripped off is to say no to all of those protection plans.  

 

 BTW what are you getting??

Message 4 of 8
Anonymous
Not applicable

Re: When should I start applying for a car loan to get a pre-approval?

Thanks for the tips. It's a Range Rover Sport. Unfortunately there are no factory incentives for custom ordered Range Rover Sports. :-/

Message 5 of 8
Loquat
Moderator Emeritus

Re: When should I start applying for a car loan to get a pre-approval?

I wouldn't necessarily decline all of the backend products just because.  Sure, if you find no value in them then I would say to decline but just a blanket decline just because you think that the dealership is going to make money...well sure they're going to make money...that's how they keep the lights on.  However you don't have to lay down for them either.

 

I take a different approach to this very subject because I was a Finance Manager for many years before switching careers.  I can' tell you how many folks were instructed by their trusty side kick to decline everything only to find themselves in a world of hurt come 36k miles and something in their high-tech vehicle decided to die. 

 

Sure there are many finance managers who are going to upsell and make as much profit as possible...as a consumer, if you find value in the product then negotiate rather than just turning a blind eye.

 

As a former Finance Manager at a PBG dealership I can honestly say that I have NEVER driven a care without an extended service agreement.  Have one in-op seat heater and you'll be thankful that you spent that $2k for the service agreement.   

Message 6 of 8
Anonymous
Not applicable

Re: When should I start applying for a car loan to get a pre-approval?


@Loquat wrote:

I wouldn't necessarily decline all of the backend products just because.  Sure, if you find no value in them then I would say to decline but just a blanket decline just because you think that the dealership is going to make money...well sure they're going to make money...that's how they keep the lights on.  However you don't have to lay down for them either.

 

I take a different approach to this very subject because I was a Finance Manager for many years before switching careers.  I can' tell you how many folks were instructed by their trusty side kick to decline everything only to find themselves in a world of hurt come 36k miles and something in their high-tech vehicle decided to die. 

 

Sure there are many finance managers who are going to upsell and make as much profit as possible...as a consumer, if you find value in the product then negotiate rather than just turning a blind eye.

 

As a former Finance Manager at a PBG dealership I can honestly say that I have NEVER driven a care without an extended service agreement.  Have one in-op seat heater and you'll be thankful that you spent that $2k for the service agreement.   


No intention to argue with you, certainly we all have the right to our opinions but I can line up a much longer line of folks who spent 2-3 or even 3k on extended warranties they never used, often times these are folks that stretched their payments to do so.  We can all find examples of somoene who "won" on an extended warranty but those are the exceptions not the rule and you can buy an extended warranty any time.  To me it makes no sense to buy a warranty on a car with a warranty.  Having said that you are correct, we all have our own risk tolerance and should make decisions based on what we are comfortable with.  

Message 7 of 8
Kforce
Valued Contributor

Re: When should I start applying for a car loan to get a pre-approval?


@Anonymous wrote:


We all have our own risk tolerance and should make decisions based on what we are comfortable with.  

+ 100

Message 8 of 8
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