I've never bought a car on financing before and am looking at buying a 2017 Nissan Rogue SL. My understanding was that I could apply for pre-approved financing through Nissan Canada Financing (NCF); I thought the way it worked was that I would apply for financing, and if approved (I have excellent credit) I could then simply go to a dealer and negotiate on price, knowing my Nissan-approved interest rate and term.
However, when I went to the dealership today, they said I would have to apply for financing *by specifying a price for the car*--i.e. it would be no different than a normal application for financing when going to the dealership to buy a car, except the price would be determined up front.
Is that how this normally works? If so, what's the point of going through this pre-approval for financing, if I'm negotiating the price during the pre-approval?
"pre-approval" financing?
-
Rogue One
- Administrator
- Posts: 7941
- Joined: Tue Jun 14, 2011 10:15 pm
- Car: 2011 Nissan Rogue SL
2012 Nissan Rogue SL
2022 Honda Pilot SE
2025 Honda CR-V Sport L - Location: Florida, USA
Re: "pre-approval" financing?
Yes, it's a marketing gimmick to get you in the door. Pre-approved means about as much as "We won't be undersold" and "Lowest price guaranteed" and "Limited time offer."
-
RicerX
- Moderator
- Posts: 2703
- Joined: Thu Jan 29, 2009 9:36 am
- Car: '20 Titan Pro4X
- Location: Southeastern US
Re: "pre-approval" financing?
The only thing the pre-approval is really good for is for telling you a flat no (as in, you have abysmal credit or insufficient credit history). Beyond that, it is extremely vague as to what it really means.