Posts Tagged 'pre-approval'

Tips when using SimpleLoan checks

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Let’s say you get pre-approved for an auto loan with American 1. You’ve got your amount all set, we’ve cut you a SimpleLoan check, and you have an idea of what kind of vehicle you want.

Now what?

Since we don’t want to send you out without the proper preperation, here are some tips to keep in mind when shopping for a vehicle with your SimpleLoan check.

First, do some research on what you want to buy. If you have a vehicle in mind, see what it’s available for in the area. Do you want used? New? Hit the auto classified section of your newspaper to see what’s selling for how much. This kind of information is extremely powerful later in the process.

If you have a trade-in vehicle, do some research to see how much you can get for it. Sites like NADA and Kelly Blue Book aren’t always 100% accurate, so ask around. And check out sites like eBay Motors and Auto Trader to see how much you vehicle is going for in your area.

Negotiate for your vehicle without letting the dealership know you have a SimpleLoan check. You should first negotiate the price of your vehicle with all the options. Once you have a price you’re willing to pay, then you can work on payments and whatever else with us at the credit union.

Pretty soon, the conversation will turn to financing. Tell the dealership you have your financing taken care of. Let them know that you are writing a check, and that you don’t need any help finding financing. The secret is that you’ve already been pre-approved with American 1, and you’re armed with your SimpleLoan check.

Don’t let them know your pre-approval amount. If the dealerships knows that amount, they’re more likely to add extras to drive up the price to your limit. This also gives you walk-away power. Remember – with that SimpleLoan check and a pre-approval amount, you’ve got the negotiating power. Don’t be afraid to walk away if you don’t get the deal you want.

When you know the price, and you’re set to finance, then you can start talking about your trade-in vehicle. By now you’ll know what your trade-in vehicle is worth. Don’t be afraid to negotiate on your trade-in vehicle’s worth to get the maximum value.

Since you’ve settled on the vehicle you want, the price you can afford, the financing is set to go, and you’re getting a decent deal on your trade-in vehicle, you can write your SimpleLoan check right then and there.

For more auto buying tips, visit our Auto Loan Experts page, or browse through other articles here on our blog.


American 1 Federal Credit Union