Get Pre-Approved for a Loan Before Going to the Dealership

The Problem

You finance through the dealer at whatever rate they offer — usually 2-3% higher than you'd get independently.

The Hack

Before car shopping, get pre-approved at your bank or credit union. Walk into the dealer knowing your maximum budget and interest rate. Make the dealer beat your rate — or use your own financing.

Why It Works

Dealers mark up interest rates 1-3% as profit. If your credit union approves you at 5%, the dealer might offer 7% for the same credit score. Knowing your rate gives you negotiating leverage.

Pro Tips

• Credit unions typically offer the best auto loan rates
• Pre-approval takes 15 minutes online
• Walking in with pre-approval immediately changes the negotiation dynamic
• Tell the dealer: 'I'm pre-approved at X%. Can you beat that?'