Before you visit the showrooms, call your credit union or go in and meet with a loan officer. You'll find out what payments you can afford based on your income/expense ratio. Use the example below with your numbers to see how you prequalify.

With a preapproved loan you'll know how much you can afford and be in a better position to negotiate the purchase price of the car and trade-in.

Upon approval of your loan, ask your loan officer for a preapproval certificate which shows that your credit union is prepared to advance funds to you.

After you agree on a price, let the seller know that your financing has been arranged through your credit union. Sign a purchase agreement, ask the seller to fax us a copy. (Also ask your insurance company to fax us a copy of an insurance binder showing your credit union as the "loss payee.") Then call the loan department of your credit union and arrange a time to sign your loan papers...that's it!