How will this exactly work for buying my used car?

Question

So I went to the bank and they approved me for a loan towards my car. The loan officer said that when I find a car, that I had the dealership write up the papers for me to bring into the bank. Now I forgot what the exact name was of the papers the dealerships needs to fill out. How long does this process take anyways? How do I explain the situation without looking like an idiot? Mostly, what happens when I am ready to buy the used car?

Answer 1

One question the dealer or seller will probably ask you is, "Will you be financing the car?"....and they mean "there". You can just say, "yes, i will be financing" , but if you can, don't tell them it's through a bank until you have negociated the final price. If they think you are financing with them, then they can make some money through financing; otherwise, they will not want to come off the price of the car very much cause you financing with another lender to them is the same as paying cash.

Answer 2

I'm not sure how it works exactly i just bought a used car yesterday and they got me my financing so i just signed and took the car home right then. i would just go in and ask the dealer tell them you have a loan and need to take the papers to the bank to get the money. i wouldn't feel dumb if i was you asking question and alot of questions is the best way to insure you don't get taken advantaged of. plus the sales people i dealt with were really cool and explained every step of the way. i felt stupid at first cause when they asked me what i was looking for i told them straight off that i had no money down and need very low payments. i got a toyota sequoia with all the features for 215 a month. just under 10,000.i looked the the car up when i got home and found out that they start at 45,000. so am very happy. but being approved already makes it easier for you cause its like buying with cash and they want your money.and make sure you get a car fax from the dealer before you buy. this tells you everything the car as gone thur like accidents and more that way you know its not a lemon.  good luck.

Answer 3

As a dealer, we do this all the time.  Just tell the salesperson that you have your financing arranged through your bank.  They will draft all the documents you need to take to the bank.  Usually, we just call the bank and get the loan officer, then fax him the papers.  No big deal.

The dealer will always offer to meet or beat your current finance offer.  If they can, then let them and everyone wins.  If they cannot get you better financing than you already have, then you go with plan A.  

Also, it is not uncommon for us to ask you to sing a "backup contract".  That is a full finance contract, complete with the APR and terms on it.  We do this because people will tell us they have financing, then not go to their bank, forget documents, etc.  This way, if you take the car, we know we have a contract one way or the other.  We cant have people running around in cars that are not paid for.  So, if they ask you to sign this contract, don't be nervous or insulted - its SOP.  Get things squared away at your bank and its not an issue.