Should I use my preapproval rate of 2.79% to negotiate a price with the dealer?

I went to a dealer and they offered me a financing rate of 9.49%, which I found unacceptable. I then went to my bank and they gave me a rate of 2.79%. Should I use the bank interest rate as a bargaining tool to get a lower price on the car, or should I just accept the rate as a discount on the car?

Answer
“If you get a rate that much lower than what the dealer is offering you, you should probably accept that as a discount.
It’s unlikely that the dealer will negotiate on the price, especially if you’re going with outside financing.
However, it never hurts to try. Even if they won’t negotiate, you have a great interest rate with your bank.
Don’t forget that when you buy a new vehicle, you will need proper coverage. If you haven’t already found insurance, use the free Jerry app to help you find the best deal. Jerry compares rates from the top 50 companies in under a minute, delivering the best deals to your phone.”
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Eric Schad
Answered on Aug 02, 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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