Deciding to buy a car is a difficult time. One of the most difficult parts of the process is getting approval for a car loan. In an ideal world, it would not be that bad, but for many people the process is mind-blowingly difficult. One thing to be aware of when you are applying for a loan at a dealership itself is watching out for the bait and switch technique.
This issue in car loans occurs when the lender offers you a certain type of car loan, usually with a good rate and with enough financing to get you the car of your dreams. Usually the dealership will let you drive the car off the lot that day, telling you that you can come finish up the paperwork tomorrow. The idea in this is that you truly become committed to this car.
The next day, or a couple of days later, you will get a call from the dealership telling you that they could not get you qualified for this financing. At this point, you are normally offered a car loan that has terms that are not as favorable. You will then have to decide what to do—keep the car and pay more, or keep looking.
This is why securing your auto financing ahead of time from an independent financer is normally a good idea. Check around for other options before you commit to getting your funding directly from the dealership.