Do I have more negotiating power if I get my own financing?
I have a great relationship with my credit union and I want to use them for financing a car. However, I also want to get the best deal. Is it true that I'll get more negotiating power if I bring my own financing preapproval?
“With a preapproval from a lender, you’ll certainly have some negotiating power for financing or a discount on the price with a dealership.
If you’re seeking a better deal on a car loan, having a preapproval may work as a bargaining chip for an even lower rate. It’s not always guaranteed, so don’t discount going through your credit union yet. Shopping around at multiple places is how you will find the best rate.
Another bonus to having a preapproval is that you’ll know how much you can spend on the vehicle and what your monthly payments will be. It can help you budget a bit better, provided you add in the cost of car insurance as well.
Just like how you’re shopping around for the best deal on a car loan, you should also shop around for the best deal on car insurance. Using the free Jerry app makes comparison shopping easy. Jerry does the hard work of finding the best deals and even helps with the signup paperwork.”
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