How to obtain an auto loan from a bank/credit union?

I am planning on buying a new car from a dealer in the near future. I would rather take a loan from my credit union. What are the steps in obtaining the loan? Do I just go to the CU and get a approved for a certain ammount, find a car in that range, then have the a dealer draft the bank or do you need to have a fixed price and car when you go to the CU? Any help on the correct process is appreciated!

How to obtain an auto loan from a bank/credit union?
Financing through your credit union can be a blessing, or a curse. A lot will vary depending on the size of your credit union. Interest rates at smaller credit unions can vary dramatically depending on the amount of money they have available to lend. One day they can be considerably cheaper than the marketplace, and next week be 1-2% higher. Check your rates in advance.





Larger credit union's rates tend to be more stable with the marketplace, but frequently are less that market. It is good to be prequalified for that reason and use that information to go shopping. Find out what rate the dealer can get for you. If it is more than the credit union, then (and only then) tell them what rate you can get from your credit union and ask them to beat it. If you tell them the rate before they show their hand, they will only drop it enough to beat the rate (if they can), but if their rate can be even lower the dealer will not drop it any more than they have too.





Know under what terms your credit union will finance. If it is new them may finance MSRP (sticker price), plus taxes, license, title, fees, etc. However, if it used, they may only cover what a certain book says it is worth plus some extra and that may not be enough. That is when running back and forth to the credit union to find what they will loan on the car can take place and the vehicle can get sold.





However, some larger credit unions have indirect lending already set up at the dealership and the dealer can handle the loan processing right there saving you time and money.





But always, always check terms and conditions, and maybe preapproval, with your credit union first.
Reply:There are a couple ways to go about this. You can go in ahead of time and get pre-approved for a certain amount. That way you will know what range of vehicle to look at. However, the approval will still be contingent on the value of the vehicle (the collateral) that you purchase.





You can also find the car and then go and get your funding. This way is a little more dangerous, because I have seen cars sold out from under people when they go to get funding. So I recommend the first way. Then just ask your financial institution what they prefer you do when you get the car.
Reply:The easiest way is to go into your Credit Union and tell them approximately how much you want to spend, and they will give you a preapproval, tell you what the rate will be, etc. Then go buy the car. After you have negotiated a price, they will want to try to finance the car for you at the dealership. I'd tell them you have a great rate at your credit union, but let them check for you anyway- you never know, they might come back with something cheaper, knowing that you've done your homework. But the preapproval route is the way to go at the CU.
Reply:i just the same thing 5minutes ago


haha


go into your CU, apply for a loanm, or do it over the internet.


Put all your info in, and within 24hrs, they give you a call to verify the info.


Then you give them the make, options and etc from the car you want.


they run the KBB price on it, and they process it again, and give you a call back to come in and finsh the paperwork.


then they need the title etc..


and BADA BING.. your on you way


hope that helps


yea, CU are better than banks
Reply:It might really save you a lot of running around to just get a car loan price online to see what the going rates are. You might be pleasantly suprised. Also if your credit is not so great, a lot of them are more able to work with people.



What I always tell folks is that an internet quote at http://auto.lowratetoday.com is worthwhile.
Reply:Finding a bad credit auto lender take a little bit of work to find the right one. When looking to buy a new or used car, the dealer may offer bad credit financing, or refer you to a lender. Car buyers should consider arranging their own financing. Bad credit auto loans are simple yet complicated and some lenders will try to take%26lt;!--advantage of you. It helps to know your available options.Before applying for a car loan, try to get a copy of your personal credit report. Lenders base approval on your credit score and credit history. Some lenders classify sub prime borrowers as persons with scores below say 700. On the other hand, another lender may qualify a borrower with the same score for prime rates.





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Unless you have a 700 or higher credit score, it might be a good idea to look at your credit report and see what you can do to improve your credit score. A 700 score will get you the best rates at the best loan terms. Any credit score higher will not change what a lender can offer you, since you will already qualify for the best loan deal. Where you will start having trouble is if you fall below a credit score of 700. When you fall below--%26gt;lenders see you as a risk and will start charging higher interest rates in order to offset the risk.At this point your only options are to seek a bad credit lender or get to work on fixing your credit score. There are a number of quick things to do to improve your credit rating and get the loan you need at the rate you want.