How hard is it to finance a car?

[Vic]

Originally posted by: kt
Someone correct me if I am wrong, but I think after you get approved for a car loan. You get a blank check from your lender valid up to a certain amount as agreed upon. And you go shopping for a car with that blank check.

Not that I have ever seen. Generally, the bank/CU will provide you (upon request) with a credit approval letter that you can show to prospective sellers. If you buy the car from a private party, you will take the car to the bank/CU from them to inspect it and to close the deal. If you buy from a dealer that has been approved by the bank/CU, then the dealer will handle all the paperwork with the bank/CU.
Remember, car loans are secured loans, with the car itself being the secured collateral and an important part of the approval.

 

[Vic]

Originally posted by: ElFenix
the APR has to be printed but the APR printed on there doesn't have anything to do with what you're actually charged. the only thing on there that matters is the payment and term you agree on.

By "charged" do you mean the cost of the car or the cost of the credit (i.e. rate, fees)?
True, APR has nothing to do with the cost of the car itself, but it has everything to do with loan rate and fees.
Anyway, my original post was in regards to people saying that the loan rate and APR (which are not always the same) being hidden in the fine print. When they advertise the car, it could be hidden there, but it is in clear bold print on the documents always. If the terms on the final purchase and financing documents are different that what you were told prior, then you should always get up and walk away. Always.

 

[Thegonagle]

Originally posted by: kt

Originally posted by: Angrymarshmello
What's the difference between getting a rate at the bank and a credit union? I've heard CU's offer a lot lower interest rates. I'm shopping for a new car too and have been advised by different people and sites to not go through the dealer. (BTW, thanks RossMAN, I bow down to your ferengi-ness)

Is applying/getting preapproved for a car loan at a bank/CU as simple as going in and filling out paperwork and waiting for the "results"? And when you get an auto loan, you basically pay the bank who in turn pays the dealer, or how does that worK?

Someone correct me if I am wrong, but I think after you get approved for a car loan. You get a blank check from your lender valid up to a certain amount as agreed upon. And you go shopping for a car with that blank check.

Not exactly a check, but they will approve you for a certain amount of money(or less) on a certain year car (or newer) with a certain amount of miles (or fewer). Then when you find the the right car at the right price, one of two thing will happen: You go to the bank with a copy of the contract (or a written bill of sale from a private party), and the car if they need to evaluate it, they write the final loan, then you go back and pick up your car; or, very likely if you're buying at a dealership, the the dealership finance person will write the final loan and get you rolling, because most dealerships already work with dozens of banks and credit unions.

 

[Budmantom]

I saw the car I wanted on thursday and it was about an hours drive away, on friday at 1100am I decided that I would buy the car. I called bank one filled out most of the paperwork over the phone, I left work at 2:30 went to the bank and after about 15min I had a check in my hand. I drove up that same day and bought the car.

The interest rate was too high 8.5% (because the car is 7years old). I called my cc from the same bank and they gave 5.9 fixed for the life of the loan.

I know some people laugh when they hear that I have a car on my cc but it works for me, and it's not easy trying to find a low apr on a 7yr old car.

Tom

 

[RossMAN]

Originally posted by: Budmantom
I saw the car I wanted on thursday and it was about an hours drive away, on friday at 1100am I decided that I would buy the car. I called bank one filled out most of the paperwork over the phone, I left work at 2:30 went to the bank and after about 15min I had a check in my hand. I drove up that same day and bought the car.

The interest rate was too high 8.5% (because the car is 7years old). I called my cc from the same bank and they gave 5.9 fixed for the life of the loan.

I know some people laugh when they hear that I have a car on my cc but it works for me, and it's not easy trying to find a low apr on a 7yr old car.

Tom

CU's rock!

 

[Budmantom]

Originally posted by: RossMAN

Originally posted by: Budmantom
I saw the car I wanted on thursday and it was about an hours drive away, on friday at 1100am I decided that I would buy the car. I called bank one filled out most of the paperwork over the phone, I left work at 2:30 went to the bank and after about 15min I had a check in my hand. I drove up that same day and bought the car.

The interest rate was too high 8.5% (because the car is 7years old). I called my cc from the same bank and they gave 5.9 fixed for the life of the loan.

I know some people laugh when they hear that I have a car on my cc but it works for me, and it's not easy trying to find a low apr on a 7yr old car.

Tom

CU's rock!

Ummm, what is cu?