Asking for some loan advice

[way2long]

We were very recently discharged from our 5+ years of 13 hell. During that time we added a child and a car died. We have been driving a borrowed (long story) car for the past few months of our 13. We easily have the money in our new budget for a car payment and we desperately need to acquire a car now that our 13 has ended. We applied for a credit card to help repair our credit and we were approved for an unsecured Capital One card with a $2000 limit, so it seems that our credit score might be a little better than we expected.

My father was a car salesman and schooled me on how to buy a car so I do know a thing or two about dealing with salesman, but I'm a little confused on how to handle the loan at this point after BK and I'm looking for some advice. I've read so many threads that discuss the pre-approval or blank check loans, but I'm curious as to whether it's better to secure the financing via a program like Capital One's before going to the dealership, or to have the dealership use their many financing resources to find the best deal?

Thoughts?

Thanks

[AngelinaCat]

If you have a good relationship with a bank or credit union, I would go there and apply for a loan and have that in place before you go car shopping. You know how easy it is to be snookered into getting extras that you don't need or want. That way, you know you have your budget firmly in place.

We are four years post discharge of a CH7. When 'Hub went shopping for a car for me last year, the dealer financial department turned him down. 'Hub's brother eventually financed the loan. A couple of months after that, wee went and visited our CU who informed us that our credit scores are around 670. The loan manager told us: "next time you need a loan, come and see me, and you will get your loan." 'Hub has been with that CU since 1964.

Good luck to you! Congratulations on completing your Ch13.

[SMinGA2]

Do your research so you know what you want/what you don't want. Something about being at a car lot makes us forget logic and confuse 'want' and 'need' for some odd reason. Go in with goals and make the salesman sell you with what you want - not what he wants to unload.

As for financing, you'll probably do fine either way. If you don't have a relationship with a local credit union, I would just go the dealership on a weekday morning. If they can't offer you something decent, leave.