Getting Pre-Qualified Before Getting a Loan

When shopping for a car, consider getting "pre-qualified" by a lender for a specific loan amount. "This doesn't mean you have been approved for a loan," said Joni Creamean, an FDIC Senior Consumer Affairs Specialist, "but it will help you know approximately how much you can afford to spend on a car and how much it will cost you in finance charges before you get to the dealership."
Consumer advocates also suggest that you not tell the dealer if you've been pre-approved elsewhere for a loan until after you've negotiated the best price on a car. They say that some dealers may be less flexible on the price of the vehicle if it's clear that the dealership won't be earning money on a loan.