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Getting pre-approved for an auto loan from a credit union or bank (like ) before visiting a dealership gives you more leverage. It allows you to compare the dealer's interest rate against your pre-approved rate to ensure you get the best deal. 4. Shop and Test Drive
: Paying this upfront helps you avoid being "underwater" on your loan (owing more than the car is worth). car buying process usa
based on a specific price and interest rate Getting pre-approved for an auto loan from a
: Shortening the loan period reduces the total interest you pay. Shop and Test Drive : Paying this upfront
Before looking at cars, determine how much you can actually afford. Financial experts often suggest the as a guideline:
The Car Buying Process in Seven Steps - Harvard Federal Credit Union
: Negotiate the total price of the vehicle rather than the monthly payment, which can be manipulated with longer loan terms.