auto loan question

[DHonks]

so I'm 30 and been driving my dad's old car. I've decided to buy a new car. I bank at two banks. Is it in my best interests to request pre-approval from both banks? I know they'll open my credit file twice, but I was figuring it wouldn't hurt. Any thoughts as to whether it is a good idea to have both banks give me a rate quote?

[theavrock]

I don't think it would hurt. Recent inquiries do count against you, but I believe I have read somewhere it was only around 10% of what makes up your credit score.

Additionally only two recent inquiries as opposed to 10-15 should hurt you very little.

[datrain711]

I work at a bank and process loans.

 

You can get a real good idea of what your loan rate would be without getting your credit run if you talk to your banker. Usually there is a listed rate, and it can be adjusted a quarter point or half point depending on credit score and the percentage put down, etc. Also, these days a lot of times the dealers have really low rates if you qualify through them. Let me know if you have any other questions

[temke]

I work at a bank and process loans.

 

You can get a real good idea of what your loan rate would be without getting your credit run if you talk to your banker. Usually there is a listed rate, and it can be adjusted a quarter point or half point depending on credit score and the percentage put down, etc. Also, these days a lot of times the dealers have really low rates if you qualify through them. Let me know if you have any other questions

agree with this. the credit check only dings your credit for a short time.

 

if anything, know what the quoted rates are at a local bank or two and use that as leverage against the dealer.

 

unrelated...don't get caught up in the loan rate/monthly payment when figuring out cost/payments. negotiate the price, then negotiate the terms. dealer's can make any monthly payment fit into any payment/rate schedule. i may have learned this the hard way...

[Hofbraunhaus]

It's always best to check a few different places. I bought a car last fall and was given a decent rate by the dealership. Out of curiosity I went to a bank and got an even better rate. Turns out it was the same bank that the dealership went through, they just jacked it up a bit. The dealership matched the banks rate which made things easier for me. Getting the loan is easy, trying to get it through the dealership's head that you don't want any of their extra service plans is the tough part.

[mothershipconnection]

Would a hard inquiry even be required if you just want to look into rates? I know that with my recent mortgage they didn't actually pull the report, but did a soft inquiry until I formally applied.

[AZBrewCrew]

pre approval is pretty much the only way to go. Im not sure about WI but in AZ the "spot delivery" is a very common practice by alot of dealers, ie you sign the paperwork while the financing is pending, then you may get a call a week or two later saying it wasnt approved and then it becomes a huge mess. I just bought another truck a year ago, I went to my credit union out here and they gave me a pretty decent rate,but when I went to do the financing at the dealer, they wouldnt honor that rate so I ended up going through the dealers FI dept and went with Wells Fargo, ended up being better terms and rate in the end anyhow.

[DHonks]

I didn't feel motivated after the Brewers game, so I just went online and filled out the forms. It turns out that the bank has a relationship with the dealer, so instead of financing at 2.99% I got a rate of 2.69%.