Car Buying Tips: Secure Financing Before Going to the Dealership

The internet has made it possible for consumers to know everything they need to know about a car from reviews to used car history before the customer every goes to see the dealer. The finance department is one of the last areas where a car dealership can make good, consistent money from their customers. Some dealerships even sell vehicles at cost without fuss or haggling in hopes that their efforts will be rewarded in the finance department.

Consumers can secure their financing online through various 3rd party lending services. They can go to the manufacturer websites and get pre-approved. Some car dealer websites even offer 30-second pre-approvals through their own finance department. Vendors such as DealerCentric, TK Carsites and AutoJockey have these applications available for their dealers.

Whether a customer has great credit or poor credit, they should all go through the process of securing their financing before going to see the dealership. It isn't that customers can get better rates at their bank or 3rd party lender than they can at the dealership. On the contrary, car dealers can normally offer a lower rate 9 out of 10 times, regardless of credit.

The issue is, if a customer doesn't know the rate they qualify for, a dealership is not obligated to offer the lowest possible rate. Knowing the available rates at a consumer's particular credit condition is an important first step to getting the best rate available.

Some dealerships go a step further with their 30-second credit application. Once a consumer knows their rate from outside their dealer, they should apply at their dealership, just to put their information on file and have it ready. It is much easier to fill out credit online than it is having a salesperson asking questions and writing freehand.

From their, the time at the dealership is easy. Find the car, go to finance (who should already have your credit information), let them offer you a rate, and then tell them the rate you can get elsewhere if their rate isn't lower. Almost 90% of the time, they have a lender who can beat any rate that a consumer brings them.