: With a pre-approved rate in your pocket, you can challenge the dealer to beat it. If they can’t, you already have the best deal secured.
: Dealerships often mark up the interest rates provided by their lenders (a legal practice sometimes called dealer reserve) to make a profit. A credit union loan bypasses this "gotcha". 3. Use Car-Buying Services buying a car with a loan from a credit union
Before you even step onto a dealership lot, apply for pre-approval. This gives you a "blank check" and a firm budget, making you a "cash buyer" in the eyes of the dealer. : With a pre-approved rate in your pocket,