# How does it work? Bank car loan



## Arkayne (Jan 17, 2008)

How does the process work? Do they give me a check that I present to the dealer?


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## Ken_McE (Jan 17, 2008)

Arkayne said:


> How does the process work? Do they give me a check that I present to the dealer?



They can do that. They'll want to know things about you and may want to contact the dealer themselves.


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## Radio (Jan 17, 2008)

You bring the signed purchase and sales agreement to the bank and they cut you a check made out to the dealer for the correct amount, this usually involves you placing them as the 1st lien holder on the title.


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## powernoodle (Jan 17, 2008)

Ark - be a wild man and consider buying something you can pay for with cash.


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## Arkayne (Jan 17, 2008)

Radio said:


> You bring the signed purchase and sales agreement to the bank and they cut you a check made out to the dealer for the correct amount, this usually involves you placing them as the 1st lien holder on the title.



So I should first strike a deal with the dealer and complete some paperwork before going to my credit union?

noods: gimme the cash-sh-sh-sh


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## geepondy (Jan 17, 2008)

I believe you can get pre-approved first with the bank/credit union, can't you?


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## gadget_lover (Jan 17, 2008)

Yes, you can be pre-approved. The bank will still want the papers in the end, and they will still be the official owners of the car if the car is the collateral. The advantage is that you will know how much car you can afford before you go shopping. You also don't have to hassle with the finance manager at the end of the buying process.


Daniel


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## Radio (Jan 17, 2008)

Just a couple of hints, Get pre-approved at a bank or Credit Union for a "New Car Loan" usually a lower rate. When negotiating at the dealer do NOT negotiate based on payment, If they ask if you are financng tell them NO, You are paying CASH, gives you more leverage, If they ask about a trade say NO, bring that up after you get the best price. Go to the dealer during the last three days of the month, much more incentive for them to sell and make quota, they also can get additional rebate incentives from the manufacturer at the very end of the month to move inventory. Do your homework, The dealer will know ALL the rebates and incentives available and if you don't they will still apply for them and keep them as commission. Don't bring anyone else with you, no wife or kids. Go at the end of the day so you are there when they close and be prepared to walk out, they won't let you  After you negotiate your best deal tell them you have to sleep on it, do not leave a deposit. If you have a trade show up with it the next morning and tell them you changed your mind and you do want to trade in the old car and you know exactly what you need to get for it, this may take a while because they will be upset, they REALLY hate this tactic but it works GREAT!! Make sure you know the book value of your trade and if you can have the check from the bank in hand made out for the price you negotiated MINUS what you want for the trade and then pull the walkout routine you will usually get what you want. If you need a lienholder and the P&S ahead of time this may not be an option. The most important thing is to know what you want and what the dealer paid and what the true value of your trade is worth. You should be able to get almost any car at or below dealer cost. I always have. It's a little work but it's fun and you can save thousands of dollars but you won't make any friends!


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## Arkayne (Jan 18, 2008)

Radio: That is awesome, thank you for that info! However, I don't plan on buying new. What is the tactic for a used car?


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## paulr (Jan 18, 2008)

Arkayne said:


> Radio: That is awesome, thank you for that info! However, I don't plan on buying new. What is the tactic for a used car?



I don't think it's worth buying a used car that you have to finance, especially in a good-weather area like where you are. Why inherit someone else's problems AND owe money on it? Buy an older car in decent shape that you can pay cash for. If you're going to finance, then buy a new car. Dealer financing (at least when I bought my car) can be better than the best bank financing because the car companies are often desperate to move cars.


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