When financing a car, do I need to buy the car first or get the loan first?

I've never gotten a car loan before, so I'm not sure how the application process works. Which comes first: Getting the car or the loan?

Answer

Most dealerships offer financing either in-house or through a third party, so you can get a car and a loan at the same time. However, it is always a good idea to go into any situation with a plan, and getting pre-approved for a loan can not only make the process of purchasing a car go smoother, it can also give you some leverage for negotiations and save you money in the long run.

Answered on Mar 12, 2021

Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.

Did this answer help you?

Ask us a question by email and we will respond within a few days.

Have a different question?

You can meet us at our office and discuss the details of your question.

"Do you need to know what car you are going to buy before getting approved for a car loan? "

"I need to buy a car but it has been years since I last bought a car and I really can’t remember the process. I think I had picked out the car first and let the dealer arrange for financing, but I do remember being shocked at the interest rate. This time around I would like to get my own financing to get a better deal. Do I still need to pick out the car before getting approved for a car loan?"

Do I have to fill out a credit application to buy a car if I already have financing?

Can a dealership force me to fill out an application if I already have financing through my credit union? I went to the dealership to buy a car after getting approval from my credit union. The salesman said that I still have to fill out a credit application to buy the car even though I am not financing through the dealership.

How soon can I refinance a car loan after buying a car?

Can I just refinance the car a week after buying it and get both the incentives and the lower rate? The dealership is offering some incentives to finance through them that are too good to pass up. However, I am approved for a much lower rate with my credit union.

Vehicle Trim Level, Options, and Packages Explained

When you buy a car, your first decision is what trim level to get. But what is a car’s trim level and how does it affect what you pay?

How to Determine Car Trade-In Value

When buying a new car, you need to determine your old car’s trade-in value to figure out how much you will get off the new car purchase price.

Rochelle Miller-Hernandez

The Destination Fee Keeps Car Prices High

Here is what you need to know about the destination fee when buying a car.

Lisa Steuer McArdle

Read advice from car experts at Jerry

What others are asking

When I switch to a different car insurance company, do I need to change my registration in California?

I switched insurance companies, but I still have the same car. Do I need to re-register it?

How much does it cost to winterize a car?

I want to winterize my car this year, as last year I ran into some issues by not doing so. How much can I expect to pay to winterize my car?

Do insurers replace the full value of your vehicle if it's damaged within the first year?

My cousin says that his insurance policy will replace the full value of his car if it's totaled within the first year of ownership. Do insurance companies normally do this?

Browse All Questions

Easiest way to compare and buy car insurance

No long forms

No spam or unwanted phone calls

Quotes from top insurance companies

Find insurance savings — it's 100% free

Compare Car Insurance for Your State

Car insurance quotes in North Dakota

Car insurance quotes in Mississippi

Car insurance quotes in Texas

Car insurance quotes in Massachusetts

Car insurance quotes in Idaho

Resources

Car Insurance by Make

Car Insurance by State

AL AK AZ AR CA CO CT DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY

Never overpay for car insurance

Jerry automatically shops for your insurance before every renewal. Members save $872/year.

Close Signup Banner