Buying a car can be a very expensive, but necessary, purchase, which is why many people choose to take out an auto loan. When you head to the dealer with the intention of finding a car and a car loan, you may have a harder time negotiating and little
idea as to whether the final loan terms the dealership offers you are the best you can get. Given that a car is a very important purchase, you should take the time to research before you head to the dealer. Look at the type of car you want and
the average price. Getting preapproved for a car loan is a much better choice than waiting until you get to the dealership for financing.
The AutoLink -- Car Buying Service, on our website, wkfcu.org/Loans/AutoLink, is great place to start doing your research from the comfort of your home. Get the information you
need about the vehicle you are interested in before you head to the dealership.
With a preapproved car loan, from your credit union to borrow up to a certain amount before you even go to a car lot and start shopping for your new car, rather than the other way around. This gives you tons of flexibility when shopping.
For an auto loan preapproval, we will do a hard pull on your credit. Don’t worry though — this has to happen if you need a car loan. Plus, you have a window of 14 days in which to shop around for an auto loan without multiple hard pulls impacting
your credit. Some credit-scoring methods may even allow up to a 45-day window
LESS STRESSBefore you even step foot in a dealership, you already know what most people stress out about: your down payment and your maximum monthly payment. Because your auto loan
preapproval is set, you know pretty well how much you’ll pay and when, as long as you stick at or below your preapproval amount.
FEWER ADD-ONSDealers like to convince you to buy add-ons, such as extended warranty, GAP insurance, appearance packages and the like. If the salesperson tries to sell you things other than a car — or upgrade you to a more expensive
car — you can feel more confident declining the offer because you know how much you can comfortably spend.
A LOWER RATEGetting preapproved is often the best option when you’re trying to finance a car because it can help you get a lower interest rate on your loan. You know the auto loan rate you deserve without the dealership acting
as a middleman and upping your APR. Dealerships can and often do raise customers’ APRs, but they’re not likely to convince you to take a higher rate if you have a lower rate elsewhere. In fact, if the dealership wants to finance your car,
they’ll need to provide a better rate than your preapproval.
High-interest car loans are like a double-edged sword because while your car is depreciating in value as you use it, you also have to spend several years paying back your loan, which is why it’s so important to secure the lowest rate possible.
LESS TIME AT THE DEALERYou can cut to the chase when you know what car you’re looking for and at what price, and you aren’t relying on the dealer to find a loan for you. You spend less time negotiating and less time
overall when you have a car preapproval.
MORE FREEDOMWhen you have a preapproval from WKFCU directly, you can go to any dealer. This helps you negotiate the price of the car more effectively because you easily can take your business elsewhere if your requirements are not
Here are a few basic requirements you need to consider.
Once you get preapproved for a car loan, you’ll be able to start shopping for a car that meets your needs and preferences. We will give you a total amount that you can spend along with the interest rate and repayment terms for your loan. Know
that the total amount you can spend includes taxes, titles and fees, so look for a vehicle that costs less than the total amount and ask the dealer for the “out-the-door price.”
Overall, having a car loan preapproval will simplify the car-buying process and shorten the amount of time you have to spend in the finance office.
To Get Pre-Approved for a Vehicle Loan at WKFCU:
WKFCU is working for you and will check your buyers order for any add-ons and charges to be sure you are getting the best deal and nothing has been added without your knowledge. We also register your vehicle and provide the Temporary Tags.
WKFCU will work with all dealerships, including out-of-state dealerships. We are also happy to work with private sellers. We finance new and used vehicles. We look at the over-all value of the vehicle including age and mileage to determine how much we
If you’re looking to buy a car in the near future, it’s highly recommended that you choose to get preapproved for a car loan at your credit union.
WKFCU is with you all the way through the whole car-buying process.
Let’s Get It Done in 2021!
(Partially reprinted from lendingtree.com)
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*APR = Annual Percentage Rate
*APY = Annual Percentage Yield
Rates are subject to change without notice
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