How To Use a Credit Union or Outside Bank to Finance Your Car in 2021

all right guys we are back we are going to be doing a video today talking about the steps you need to go through to do outside financing so instead of financing your car purchase through the dealership you can actually get financing from third parties outside of the dealership and it sounds kind of easy in theory like i recommend to a lot of people back on the ya community forum i say yeah you know get a quote from your credit union and you know get the dealer to try and beat it and then i just like say it and i don't actually know what happens next i was hoping today kimberly and pops you could walk us through like what are you actually supposed to do when you get that pre-approval from the credit union how do you actually go about using that at the dealership our step-by-step guide to using outside financing uh kimberly like how do you do it yeah that's well said zach because um we don't we don't often think about the logistics of it you know you're at the dealership then you finally agree that yes i want to buy this car but wait a second i know i'm pre-approved or i know you know you're you're set on getting your money somewhere else at your credit union or an outside bank so here are some things to do and to not do do you have any to go first ray uh well one of the things one of the things that you don't want to do is you you don't want to you don't want to put yourself in a position where the dealership won't hold the car because you're not prepared to give them a deposit to hold the car while you go through the process of actually getting the draft or the check from if it's a credit union or the outside bank yeah exactly so let's let's take a look at a scenario so ray is the sales manager and your sales person has just closed the deal the customers agreed and now what happens sometimes is that they leave the dealership they might leave a deposit but then they leave the dealership and then what happens is they come back with a check already made out they've never gone through the finance office so what you really need to do is go through that finance office first get that out of the way and here's why the finance manager wants to go over the menu with you first the presentation and the disclosures to show you what's available in additional products second reason is you want to get a purchase order or bill of sale signed and you want to have that with the firmed up fees the registration fees the state fees you want to make sure that that's all square and on the purchase order before you leave the dealership to go get your money from the bank you can ask the finance manager to please fax or email that purchase order over to your contact at the bank so please be prepared with your contact that you have somebody that you were working with at the credit union or at your bank and have their information so that they can get that expedited for you yeah because for sure credit unions and and outside banks are going to require uh a signed buyer's order and the and by sign it has to be signed by a sales manager and it has to be signed by the customer and the reason the bank wants that is it spells everything out it spells out the vin number of the vehicle they're buying the color the trim everything they need to know about the vehicle that they're buying it it spells out all the costs and listed on that buyer's order could be the customer's down payment and so that they know what the balance is that the bank or credit union is going to finance and they need that information so they can actually cut the check and so that they can provide the finance person with the lien information that's going to need to go on to the loan onto the title showing that there is a loan against the vehicle so i've got a question for you guys i've heard of and i think like navy federal credit union for example does this they send people like your check like here it is like like here's the check it's already signed ready to go and it's got like a time it's it's time sensitive you've got 30 days to use it or something like that help me understand those types of promotions or offers or how do they work with the other example that you just walked through which is like okay i know i'm pre-approved but let me go through the dealership first then send this over to the bank to my contact at the bank you know what i'm talking about with like there's there's those letters or there's checks yeah they're they're blank checks and they're really nice too for consumers so uh you've got to check with you sometimes you can even print them out off of the computer i've seen that happen too um and you're in the finance office there will be instructions for the consumer for the buyer and for the finance manager on what to do so after the menu has been presented maybe i want this product that product maybe no products you get that final number on the bill of sale and then you write out the check according to the instructions by the lender maybe it's like you said navy fed usaa does it um i think pen pen fit is that right pen fed does it yeah and so yeah those are really nice now after that happens um and the transaction is complete then the finance manager has their instructions which is typically pick up the phone dial this number somebody answers and they give you a code that you fill out on the back of the check and then it goes to accounting where they deposit the check so yeah zach that they're very nice too and the wonderful thing about that is that it's the people aren't necessarily approved on a certain car they're approved up to a certain amount of money so uh they might be approved up to fifty thousand dollars and and they come into the finance office and they might only have to write a check for 40 000 or 42 000 but they have the ability if they wanted to to look at something that would be even more expensive they just have a cap that they can't go beyond now if they if they do go beyond the cap then it would require either cash down from the customer or a phone call to the credit union to ask for the additional amount and get get an approval for that i got a question for both of you guys banks that you liked working with banks that you didn't like working with obviously your captive lender at the dealership you probably i hope liked working with like it was pretty easy to do were there certain financial institutions outside financial institutions that like okay great we've got a customer from you know pen fed love working with them easy versus like mnt bank i'm thinking back to like our maryland days but like yeah where there are different financial institutions you liked and didn't like didn't like i i i can't speak for kimberly but i can tell you from my experience some banks were slower to actually uh pay the dealership than other banks so there were certain banks that we didn't necessarily like to place a loan through and then there's other banks that are just a pleasure to place a loan through they they pay the loan quickly they don't make you jump through as many hoops but kimberly has greater experience in that area than i would i certainly had banks that i loved and banks that i went oh no not them there were certain banks that were hard to get funded as ray said um and that rotated too zack quite honestly it depends you know whenever the bank would tighten up uh their guidelines and their structures they would tighten it up and you couldn't you couldn't get as much done well all of a sudden i don't like them anymore so it depends on the structure but i did have a lot of really good relationships with buyers from the banks um and there were some banks that would what i call buy deep um so if you had an over advance like i think we've talked about before 150 percent advance on a vehicle i love them i love them to death because i had no problems getting them funded so i will tell you subprime banks i didn't like any of them they're difficult subprime banks want their stipulations um and it's tough getting them funded quickly oftentimes i felt the frustration from our finance people with subprime banks because it was almost as if the subprime bank never really wanted to fund a loan in the first place and the yeah and they just kept making you jump through more and more and more hoops in order to finally get funded so that uh you know it sometimes it could take up to two to three weeks while your customers out riding around in this car and you haven't been funded yet because you're still waiting to get this stipulation or that stipulation um yes some banks can be an absolute pain in the butt yeah i think we should save that for nightmares or halloween nightmares oh i like that yeah i might even put on a mask i want to put a mask over that pretty face oh stop it [Laughter] this whole three of us remote thing you're gonna you're not gonna need me anymore you guys are great um pops kimberly thanks for walking us through that if you're gonna finance outside a dealership there you go now you understand some of the actual logistics that go into it the process that's gonna happen and uh yeah sounds like if you have one of those blank checks that's probably the easiest thing for everyone involved so get one of those yes absolutely yeah and i do want to say one last thing a lot of people do finance through credit unions contact the finance manager get the bill of sale faxed or emailed over to your contact at the bank that will expedite things for you there you have it thanks guys thank you thank you see you bye

Channel: CarEdge

Views: 352,141

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Id: 1XjuvJdLHPw

Length: 10min 28sec (628 seconds)

Published: Thu Sep 02 2021