What comes first, the dealership or the financing?

[empowered]

I'm a few weeks from discharge and have been thinking of getting a used vehicle with AWD to get me through the winter. I am hoping to pay no more than $6,000 to $8,000 to do so, hopefully with a down-payment that does not exceed $1000. Obviously, to get what I want, used, at the right price, I'll have to consider different dealerships that have taken in the vehicle that I want.

So what happens then? Do I have to try through each dealership for financing with their lending partners? Is that how it works? Or do I contact some subprime vehicle lender beforehand so that my credit isn't pulled again and again? Can any lender I independently contact deliver the funds to the dealer who has the right car?

I do need this vehicle if I can get it. I have read posts on the forum advising people to wait for months or years before going for any kind of auto loan but I don't have a lot of choice. If I don't get it I suppose I'll have to buy some beater off of Craig's List and hope it does not immediately break down.

Thanks.

[empowered]

Actually, the handy-dandy "Similar Threads" section brought up a couple of threads that advised that the best way to do it is to go through the dealership and to avoid applying online. So I can do this.

I guess if you go this route you have to hope that you can in fact get financed through the dealer. I was nervous about what happens if you find that that dealer has nothing for you. Then you go to another dealer and have your credit pulled again? Or do you figure that you can't get financed if one dealer can't find a lender for you?

Thanks.

[backtoschool]

I am not sure which threads are advising you to go through the dealer and not online. Obtaining online financing beforehand can be an effective negotiating tool when you do go to the dealer. For instance, Cap One approves a lot of people post discharge. If you obtain financing through them online, you will have an idea of what rate you are qualified to get right now, and you will have a negotiating tool if the dealer tries to give you an interest rate that is too high. If you can wait a couple of months post discharge to apply for an auto loan, you will get a better rate. Your rate will also depend on whether you have paid in full car loans on your credit report pre bk, and whether there are any repos on your report. As with anything ymmv.

[BubbaJoeBob]

Your best route of action would be to let the dealership obtain financing as they have a daily relationship with their lenders. They also know how to structure the financing to best meet your needs and budget, unlike "online" financing......

[LSUTiger32]

I think you are being extremely smart about this and I am the last person that anyone would expect to hear that from. You are looking for a good used car and have a down payment that will only cause you to finance $5-7,000. I'd love it if you grabbed a $1,0000 beater off of Craigslist or EBay because that would allow you to save even more towards a nicer car later......but I understand that everyone isn't going to do that. All of that said, I would leave all of these doors open. Try Capital One for sure, they seem to be the most reasonable with the auto loans. God, I hate them.....but it is what it is. Secondly, if you find a car that really want and you aren't happy with the online rate you got let the dealership give it a shot. They want to sell the car, so maybe they can do better. Ask the finance manager how many times he will pull your credit and tell him that you want to limit that. If you need the car though, do what you have to do. Hopefully, you won't be needing credit for anything else anytime soon so why worry too much about the inquiries.....they will fall off with time.

[backtoschool]

Going to the dealer without applying online first gives the dealer all the control. Typically dealers add a couple of points of profit to whatever rate you are approved for, so if you do not know the general range you will be approved for, you could end up paying thousands of extra dollars over the life of the loan if you do not get a pre-approved rate before you go to the dealer. The dealer is always free to try to match the rate if they really want the business.

[LSUTiger32]

Going to the dealer without applying online first gives the dealer all the control. Typically dealers add a couple of points of profit to whatever rate you are approved for, so if you do not know the general range you will be approved for, you could end up paying thousands of extra dollars over the life of the loan if you do not get a pre-approved rate before you go to the dealer. The dealer is always free to try to match the rate if they really want the business.

Yes, no doubt do the online thing first. Also, DO NOT tell the scum bag dealer what rate you already have. Trust me if you do, they won't beat it by anymore than it would take to get the loan. Remember, they make more on selling the loan than they do on selling the car so be careful. Get a solid offer online if you can and ten see if they can beat it without telling them the target. If they can't, use the financing you got online. This is all a game, be a player but stay smart! Don't let them talk you into more than you want. Good luck!

[BubbaJoeBob]

Poor advice given in regards to applying online..... Sigh..... What makes more sense, finding a vehicle you like and having a dealer help with the financing, since they do that everyday and know the ins and outs of post bk financing and can "sell" the lender on you, or just applying and letting a computer program decide for you ???

And yes the dealer is going to make money on the financing and the sale of the vehicle. They are entitled to..... I wish I too was a self proclaimed expert on this subject..... I guess those 10 years as an F&I manager before I finished law school and became corporate counsel don't count... Oh well what do I know.....

[backtoschool]

Poor advice given in regards to applying online..... Sigh..... What makes more sense, finding a vehicle you like and having a dealer help with the financing, since they do that everyday and know the ins and outs of post bk financing and can "sell" the lender on you, or just applying and letting a computer program decide for you ???

And yes the dealer is going to make money on the financing and the sale of the vehicle. They are entitled to..... I wish I too was a self proclaimed expert on this subject..... I guess those 10 years as an F&I manager before I finished law school and became corporate counsel don't count... Oh well what do I know.....

Just about every post you make BubbaJoeBob has an insult to another poster, and you only have 16 posts on this board, so it is not clear what your credibility is yet. Time will tell....

As to the F and I guy "helping" you, well the F and I guy is out to make a profit for the dealership, at the expense of the buyer. Why pay several extra points in interest just to make the dealership a profit? No reason. There is no down side to going into a dealership with a pre-approval in hand. The dealer is still free to meet or beat the rate. My pre-approval yielded me a 4.42% rate. Ymmv of course.

I am putting you on ignore after this post, since all of your posts seem to be insults.

[BubbaJoeBob]

just about every post you make bubbajoebob has an insult to another poster, and you only have 16 posts on this board, so it is not clear what your credibility is yet. Time will tell....

as to the f and i guy "helping" you, well the f and i guy is out to make a profit for the dealership, at the expense of the buyer. Why pay several extra points in interest just to make the dealership a profit? No reason. There is no down side to going into a dealership with a pre-approval in hand. The dealer is still free to meet or beat the rate. My pre-approval yielded me a 4.42% rate. Ymmv of course.

I am putting you on ignore after this post, since all of your posts seem to be insults.

lol !!!

[LSUTiger32]

BubbaBobJoeBobWilly whatever......what's your deal? Are you the salesman that empowered is working with! HEHEHEHEHEHE, I crack myself up. Seriously though, why would you tell someone to not explore all options. I told the OP to defintely check into the financing offered at the dealership, but in no way should the OP leave it up to the dealership. I was going to ask you if you were in the business, you smelled of it. You know as well as I do that they are not going to be doing the OP any favors. If they can get 4% for the OP and sell him on 6% they will in a second.

[backtoschool]

BubbaBobJoeBobWilly whatever......what's your deal? Are you the salesman that empowered is working with! HEHEHEHEHEHE, I crack myself up. Seriously though, why would you tell someone to not explore all options. I told the OP to defintely check into the financing offered at the dealership, but in no way should the OP leave it up to the dealership. I was going to ask you if you were in the business, you smelled of it. You know as well as I do that they are not going to be doing the OP any favors. If they can get 4% for the OP and sell him on 6% they will in a second.

I have to agree with you LSU that BubbaJoe is probably in the business. Nobody who is neutral would say "the dealer is your friend". The last time I checked, the F and I office of my local car dealer was not registered as a non-profit organization.

The more options someone has when financing a car, the more in control of the negotiations they will be and that is a good thing.

[BubbaJoeBob]

BubbaBobJoeBobWilly whatever......what's your deal? Are you the salesman that empowered is working with! HEHEHEHEHEHE, I crack myself up. Seriously though, why would you tell someone to not explore all options. I told the OP to defintely check into the financing offered at the dealership, but in no way should the OP leave it up to the dealership. I was going to ask you if you were in the business, you smelled of it. You know as well as I do that they are not going to be doing the OP any favors. If they can get 4% for the OP and sell him on 6% they will in a second.

Used to be in the business, it paid for law school.... How come none of the self annoited experts suggested a credit union, which is a very good option also ????

[Pandora]

Used to be in the business, it paid for law school.... How come none of the self annoited experts suggested a credit union, which is a very good option also ????

What in gods creation is your issue? You're so rude....

Talk about "self appointed experts..." You take the blue ribbon on it.


Pot meet kettle.

[backtoschool]

What in gods creation is your issue? You're so rude....

Talk about "self appointed experts..." You take the blue ribbon on it.


Pot meet kettle.

I have to agree with you Pandora that the only "self appointed expert" on this board seems to be BubbaJoe. With 17 posts to his name, all of them containing questionable advice, misinformation and insults to other members of the forum, BubbaJoe is not an expert, self appointed or otherwise in my opinion.

I think we should chip in for charm school for him with the money we all save from financing our cars with pre-approved online offers.