5 Comments July 16th, 2009

Can I use my approved car loan from my bank as a barging chip to get a better loan at the dealership?

T C asked:


I have been rebuilding my credit for some time and my bank of about 8 years has finally be able to provide me a car loan. Can I use this car loan as a bargining chip to get a better loan at the car dealership?

This entry was posted on Thursday, July 16th, 2009 at 2:10 am and is filed under Car Loans. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

5 Responses to “Can I use my approved car loan from my bank as a barging chip to get a better loan at the dealership?”

  1. Huba Says:
    July 16th, 2009 at 3:24 am

    Yes, you can ask if they can beat the financing you already have pre-approved. Also, see if they have an indirect lending program through a credit union. By joining you may find a better rate there, too.

  2. Chad g Says:
    July 17th, 2009 at 1:27 pm

    if you mean the price is 10000, and you say you are only aprroved for 9,000…then yes, it might help. what ever you do do not walk in and say, I can get a car up to 9,000…because I guarentee that is how much you will spend.

  3. whowhat? Says:
    July 18th, 2009 at 11:37 pm

    You certainly can. If they finance you even at the same rate, they would get the income from that loan (either interest or selling it to another loan company).

    Dealerships are pretty desperate for sales right now so go to Edmunds.com and look up what they paid for the car and pay only a few hundred above invoice (not MSRP).

    If it is an American car, you can probably pay invoice or below that.

  4. bigdaddy Says:
    July 22nd, 2009 at 12:29 am

    yes ! wait to the dealership gives you the lowest rate they will finance the car at and if your bank loan is at a lower rate give them the paperwork from the bank. Watch how they will make their rate lower.

  5. robodude1 Says:
    July 23rd, 2009 at 6:18 am

    Your bank loan commitment should always be better than what a dealer will do. They make money on top of the bank financing.

    The only time that the dealer will beat the bank is when they have a sale. You can get unbelievable financing then.

    My son-in-law is a sales manager and explained this all. Instead of reducing the price of the car for sale, they give you financing or lease deals that our fantastic.

    Fred