When is the best time to apply for a new car loan? Should I do it before I shop for a car, or will I get just as good a deal at the dealership?
Start by doing some research on the internet. Go to the websites of the manufacturers in which you are interested. Look for special financing or rebate incentive offers, so that you can be armed with that information when you visit the vehicle dealership. Note that most of the time, you get a choice of the financing option (if you qualify) or the rebates, not both.
If you don't (or can't) use the reduced-rate financing option, the dealer will be more than happy to "shop" your loan with any of the lenders that the dealer may have financing arrangements with. The rates on these financing deals are often higher than the rate you might be able to get on your own from your bank or credit union, so it's always a good idea to get a pre-approval from the bank or credit union before you go shopping for the vehicle. Don't discuss the pre-approval with the dealer until after you've agreed on the best price for the vehicle. Then compare your financing options, combined with any rebates available, to see where the best deal lies. Combining a manufacturer's rebate with pre-approved financing is often the best way to maximize your savings
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Start by doing some research on the internet. Go to the websites of the manufacturers in which you are interested. Look for special financing or rebate incentive offers, so that you can be armed with that information when you visit the vehicle dealership. Note that most of the time, you get a choice of the financing option (if you qualify) or the rebates, not both.
