Why You Should Get Preapproved for a Car Loan

 

When shopping for a new car, many people overlook one important step: getting preapproved for an auto loan. It's a simple process that can make car-buying go more smoothly and save you money.

 

Preapproval is a quick assessment of your ability to pay off a loan based on your credit history and current financial state. This is how it works: You visit NCCU, in person or online, and provide proof of your identity — such as your driver's license or Social Security number — your household income, and perhaps your housing costs. The lender will likely run a credit check. Then you'll find out how much it would be willing to lend you and at what rate — sometimes on the spot.

 

Here's why you should get preapproved.

 

You can get a better interest rate

 

If you haven't done your homework, your dealership might try to talk you into a loan at a not-so-great rate. But getting preapproved at NCCU means you can assess the dealership's offer, and you don't have to accept it. Bringing your interest rate down just one or two percentage points can save you hundreds, maybe thousands, of dollars over the life of your loan.

 

You can set a true budget

 

Once you're preapproved for a loan, you can plan your purchase. Use an auto loan calculator to factor in a down payment, the value of your trade-in — which you can find online — and your desired monthly payment. Add about 10% for sales tax and other fees. And don't forget about insurance and the other costs that come with owning a car.

 

Adjust your dreams — and budget — accordingly. Then go shopping.

 

You can better negotiate with the dealer

 

Letting your dealer know that you're preapproved shows that you're a ready-to-buy customer who can walk away at any time. That curtails a lot of the early verbal dancing. Just announce you have your preapproval and will only talk price. Try something like this: “I'm looking for this model, in a deep blue with black leather interior and rear parking sensors. I just stopped in quickly to find out the price I would pay after you take my car as a trade-in.” If the salesman doesn't listen, say, "I just want to hear that one number." It's not rude to be assertive in this situation.

 

And as you're signing all the papers in the finance office, if a salesperson tries tempting you with an extended warranty or other last-minute add-ons, you can use your preapproval to stick to your price.

 

When you're preapproved for a loan, you have the competitive edge in car-buying. You can say no until they say yes.

 

© Copyright 2016 NerdWallet, Inc. All Rights Reserved

 

 

Your Insured Shares:

Your shares are insured up to $250,000 by the National Credit Union Share Insurance Fund (NCUSIF), an arm of the National Credit Union Association. Not one penny of insured savings has ever been lost by a member of a federally insured credit union. The NCUSIF is backed by the full faith and credit of the United States government. Your money is safe with us.

 

Equal Housing Opportunity Member NCUA

Rates subject to change without notice

Certain Restrictions Apply

 © 2008 Northeast Community Credit Union

 

Lost VISA Check Card

Call 1-800-472-3272

Then call us at 423-547-1200

 

Lost VISA Credit Card

Call 1-800-558-3424

Then call us at 423-547-1200

 

Main Office

980 Jason Witten Way

Elizabethton, TN  37643

423-547-1200

Member Services Fax: 423-547-3825

Accounting/Admin Fax:

423-547-1225

 

Johnson City Branch

313 W. Oakland Avenue

Johnson City, TN  37604

423-722-6228

Fax: 423-722-6230

 

Elizabethton Branch

1321 Highway 19E

Elizabethton, TN  37643

423-543-7777

Fax: 423-543-7783

 

Roan Mountain Branch

8301 Highway 19E

Roan Mountain, TN 37687

423-772-3115

Fax: 423-772-0004

 

ABA / Routing #  264278827

NMLS #520867

 

 

Hours of Operation

Monday through Thursday

8:30a.m. to 4:30 p.m.

Drive-thru opens at 8 a.m.

 

Friday

8:30 a.m. to 5:00 p.m.

Drive-thru opens at 8 a.m.

 

Saturday

(Drive-thru only)

9:00 a.m. to Noon

VISA Check Card Activation

1-866-333-9337

External Link Disclaimer: *Every time you click on an external link, you may be leaving  the NCCU web site and linking to an alternate web site that is not operated by NCCU. The appearance of a link on this or any other Northeast Community Credit Union page constitutes neither an endorsement nor recommendation by NCCU. The presence of a link in any way should not be construed as a suggestion that the site has any relationship with NCCU. When viewing these pages please remember that: (1) NCCU is not responsible for the content, product or services advertised on those sites; (2) NCCU does not guarantee the products, information, or recommendations provided by linked sites; (3) NCCU is not liable for any failure of products or services advertised on those sites; (4)“NCCU does not represent either the third party or the member if the two enter into a transaction (5)The linked website may have a privacy policy different than that of NCCU; (6) The linked website may provide less security than that of NCCU's website.