Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Auto Loans
Profile Image

Question By
BumtasticBonVoyage

2 Contributions
0 People Helped
Can someone explain being pre-qualified going into a car dealer?
So I'm sitting here and I've decided to buy a car from a dealer. My credit score is 700+. Whats my next move? What do i say to a car salesman? How do i get pre-qualified for an auto loan? Is it an auto loan? Where can I get pre-qualified? How do I use this as leverage? Can someone please explain this to me step by step please?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
93 Contributions
65 People Helped

First of all, do you have a down payment? Have you selected a vehicle yet?

2 Contributions
0 People Helped

I haven't just yet but I've seen people saying things like "i went in pre-qualified and forced them to give me a better deal" "i had a copy of my credit score so they didnt have to run it." This will be my first time buying a car in my name and i want to do it right. 

Top Contributor
784 Contributions
298 People Helped

The interest rate with an auto loan from a credit union or your banking institution will most likely be less than a loan at a dealership. The percentage can drop a bit depending if you have an automatic draft or payment from your account. There are differences between pre-qualified, pre-approved, and approved.

I'm not a fan of auto loans because the interest is not deductible. Any interest you pay is wasted money whether it's a credit card or loan. Only mortgage interest is deductible on your federal tax returns.  

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.