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?

Answer
“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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Eric Schad
Answered on Aug 12, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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