Right up until its time to talk financing.

Suddenly, youre at the mercy of a dealership and its finance manager.

But what if you had your own number before you even stepped in the dealership?

A person drives car.

An auto loan preapproval is a financing offer from a lender that includes the maximum loan amount, APR and terms of the loan. It can give you negotiating power when shopping for a car.

An auto loan preapproval can put you in the drivers seat figuratively and literally.

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Did you know?

Understanding your limits prior to beginning looking can help you stick to a budget.

you’re free to shop for the best rate.

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Apply to multiple lenders, then ask the dealer to beat your best preapproved loan offer.

you’re free to hold out for the best car price.

How much can a preapproved auto loan save you?

Lets say you need a $20,000 loan to buy a car.

The dealership offers you a five-year loan at 9% interest.

Ready to start saving?

Buckle up for The Penny Hoarders guide to preapproved auto loans.

You dont need to know the exact car, but you should know new or used, Jones said.

Look online about a week before you think about buying one.

Jones cautions that youre shopping for preapproved loans, not not prequalified ones.

A preapproval letter will include the following information:

The name of the lender.

The maximum amount the lender is willing to finance.

The annual rate, or APR, as either a range or an exact number.

And dont forget that those new wheels could change what you pay for yourauto insurance.

How to Shop for a Car with a Preapproved Auto Loan

Ready to shop?

Then its time to practice your poker face.

Instead, work on getting the best price for the vehicle first.

If their offer is not good, pull out your letter and say, Can you beat this?

Talk with a lender rep, but dont be confrontational, Jones said.

But remember, financing is just one component of buying a car.

Take every part of the car buying process as separate instead of one whole piece, she said.

Trust us, your patience will pay off down the road.

Tiffany Wendeln Connors is a staff writer at The Penny Hoarder.

Readher bio and other work here, then catch her on Twitter @TiffanyWendeln.

(Can you sense my millennial sarcasm there?)

You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…