Getting preapprovals from multiple banks, credit unions or other lenders – before you walk into a dealership – allows you to shop around and compare interest rates and loan terms to find one that best fits your budget.
Since dealers and lenders are not generally required to offer you the best rates available, negotiating can also help save you hundreds or thousands of dollars over the life of the loan. Negotiating can be as simple as asking the dealer if those are the best loan terms they can offer you or by pointing out lower rates available at a competing lender.