Reasons to arrange auto financing before visiting a dealership Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our aim is to assist you make better financial choices by providing you with interactive tools and financial calculators, publishing original and objective content. We also allow users to conduct research and compare data for free to help you make informed financial decisions. Bankrate has agreements with issuers including, but not restricted to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The offers that appear on this site are from companies that pay us. This compensation may impact how and when products are featured on this site, including such things as the sequence in which they be listed within the categories of listing, except where prohibited by law. This applies to our mortgage and home equity products, as well as other home lending products. However, this compensation will not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial deals that might be open to you. SHARE Tim Robberts/Getty Images

3 min read Published August 18, 2022

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Written by Bankrate The article was created by using automated technology. It was then thoroughly edited and fact-checked by an editor on our editorial team. Written by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate since the beginning of 2021. They are passionate about helping readers gain the confidence to control their finances by providing precise, well-studied information that breaks down otherwise complex topics into manageable bites. Reviewed by Mark Kantrowtiz Reviewed by Nationally recognized student financial aid expert Mark Kantrowitz is an expert on student financial aid as well as the FAFSA and scholarships, 529 plans, tax benefits for education as well as student loans. The Bankrate promise

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There are money-related questions. Bankrate has the answers. Our experts have been helping you manage your money for over four decades. We strive to continuously give our customers the right advice and tools required to succeed throughout life’s financial journey. Bankrate follows a strict standard of conduct, which means that you can trust that our information is trustworthy and reliable. Our award-winning editors and journalists create honest and accurate content that will help you make the best financial decisions. Our content produced by our editorial staff is factual, accurate and uninfluenced by our advertisers. We’re transparent about how we are in a position to provide quality content, competitive rates, and useful tools to you , by describing how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for the placement of sponsored products andservices or when you click on certain hyperlinks on our site. Therefore, this compensation may affect the way, location and in what order products appear in listing categories, with the exception of those the law prohibits it for our mortgage, home equity and other products for home loans. Other factors, like our own proprietary website rules and whether a product is available within your area or at your personal credit score could also affect how and where products appear on this site. While we strive to provide an array of offers, Bankrate does not include specific information on every credit or financial product or service. In the present, it is smart to do your research prior to going to a dealership. Working out financing ahead of going to the dealership gives you time to research your options and determine the rates you are eligible for before you talk to an agent. This also means that you don’t commit to an automobile you’re not able to afford or take credit from a dealer when you can find a better deal elsewhere. Benefits of arranging financing prior to your visit If you can arrange financing prior to visiting the dealership , you stand the best chance of getting the best deal. Affordable terms Prior to walking into a store, you will get an idea of the rates of interest, loan terms and monthly payment options you can qualify for according to your credit score. If you know the rates you can qualify to get, you are able to go into the store with confidence knowing that you’re getting the best deal. Lower stress levels Sitting in a meeting with an lender — or in person prior to visiting a dealer can lessen the anxiety you experience when the dealer offers you with financing deals. If you’re able to conduct some research and determine the most appropriate loan conditions for your particular situation You’ll be better equipped to make an informed decision, rather than being pressured into buying something right away. You’re well prepared Arranging financing prior to visiting a dealer will make it easier to buy a vehicle that you’re happy with. With the financing in place, you’ll be better informed about which vehicle makes the most financially sound and will be shopping on your monthly payments. How do you organize auto financing ahead of time To make sure you are getting the best terms and conditions, you should take these steps. 1. Explore the market Start by shopping around. It is possible to do this either way. Either go online to check rates without having to input a lot of personal details, or you can contact several lenders for rates. The more quotes you request, the more likely you are to receive a fair rate. Try to get quotes from a minimum of three lenders. 2. Find out about the dealerships Dealerships should be open about their rates their pricing, so when you have a quote on hand, you can check on the websites of the dealerships that you’re thinking of to determine what rates are on offer. If the dealership offers an unbeatable rate, you can take it back to the lender you are working with to see if they can beat that rate. 3. Pre-approval is the next step in arranging financing is to get fully with the lender with the best rate and time frame to meet your requirements. This will let you walk into the dealership with an offer in hand — giving you even more power in negotiating. 4. Find the best deal After you have been granted financing, it is time to research and negotiate for the best deal. It is easy by going to multiple dealerships with your preapproval forms in hand. Be sure to inform the salesperson that you’re planning to consider dealership financing. Keep your preapproval close to the drawer until it’s time to actually buy. You could then make use of the existing financing to work around common high-pressure . What do you do if you cannot get financing in advance If you are unable to be approved for an loan prior to going to a dealership but that doesn’t mean you shouldn’t try. You can ask to speak with a salesperson for assistance in obtaining financing. If you’re still unable to get financed at an auto dealer, it might be time to step back. Instead of applying for an auto loan designed for customers with or visiting an “buy here, pay here” lot, it may be better to work on improving your credit score and reduce your amount of debt. There are many ways to go about , but they will take time. Begin by taking a look at your credit report, and then examining it for . Then, you’ll need to work on paying the debts you have and lowering your debt-to-income ratio overall. If you need an automobile sooner that later on, then you may require looking into the possibility of a low-credit option or a cheaper vehicle. Shopping may be one way to get a good price on a well-maintained vehicle. There is also the possibility to find a car for affordable by examining cars being sold by students at college but make sure it’ll actually get you where you need to go. The bottom line There are many benefits to arranging financing ahead, such as favorable terms, a lower stress level and the chance to get a great deal that you wouldn’t be able to get visiting the dealership directly. To make sure you are receiving the most favorable rates and terms possible, you should shop around, get preapproved and research the dealership. Find out more

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Written by This article was produced using automated technology, that was then thoroughly edited and checked by an editor on our editorial team. The article was edited by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate since the end of 2021. They are dedicated to helping their readers gain the confidence to manage their finances through providing concise, well-studied and well-researched content that break down complex topics into digestible chunks.

Auto loans editor

Reviewed by Mark Kantrowtiz Reviewed by Nationally known expert on student financial aid Mark Kantrowitz is an expert on student financial aid, the FAFSA, scholarships, 529 plans, education tax benefits and student loans.

Nationally recognized student financial aid expert

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