Arrange financing in advance

Arrange financing in advanceBuying a new or used car can be intimidating, but there are a couple of tactics that can help drivers, even those with bad credit, negotiate a great deal.

Once a buyer has targeted a specific price range for their vehicle, they might want to think about securing their car loan beforehand. It seems counterintuitive to apply for a loan before negotiating a deal, but having a loan secured can actually take a lot of the pressure off of the negotiation.

It's easy to fill out an online car loan application and instantly get several offers, regardless of credit. Once an offer is accepted, the lender will typically mail the buyer a check that can only be used at car dealers and is good for a short period of time. The buyer can then head to the dealership and negotiate a deal, but should negotiations break down, it's no problem, the check just expires.

Those who secure their car loan ahead of time may find that the negotiation at the dealer is a bit easier. That's because they'll already have a set budget that they need to stick to, so there's no way to be talked into unnecessary extras. It also means that the conversation can stick solely to the price of the vehicle and not get muddled with leasing or financing considerations.