Question: Should You Get A Loan Before Buying A Car?

Reed recommends consumers check their own credit by obtaining preapproved financing.

They should go to a bank or credit union and apply for an auto loan before visiting the dealership.

If you want to take advantage of a manufacturer’s offer of a cash rebate or a low interest car loan, do your homework before deciding.

Should I get financing before I buy a car?

Because higher credit scores typically mean lower auto loan interest rates, it might be worth delaying your car-buying until you repair your credit and can qualify for a better rate. If you’re ready to buy, getting preapproved for an auto loan will show you roughly what interest rate you qualify for.

Is it better to get a car loan from bank or dealer?

The good news is that you have options: You can get your car loan from a bank or credit union, or you could go through the dealer. While both have their benefits and considerations, you’re always better off being informed about your financing options before you ask for the keys.

Can you get preapproved for a car loan?

A better way is to get preapproved for your car loan. Getting preapproved is the closest you can come to the perks of paying with cash while not having to save up for months or years in advance. You can get preapproved for a car loan at a bank, credit union or online lender.