New car financing question for newbie

a471133

First time buying a new car and utilizing financing. For reference I am pre approved by NFCU and they have already sent me the check and instructions to take to the dealer. Their loan department told me that after the deal is done and we agree on a price, then i obviously write the check out for the amount. The dealer then calls NFCU to obtain an approval code and then can deposit the check. The part that is curious to me is that NFCU will send "final" documents including a promissory note to be signed by mail a few days after i get the car from the dealer.

Is this common practice? I would think that I would need to sign final loan documents at the dealership. Is this anything like the dealer spot delivery scams? Just worried that the "final" documents they mail me might change from what I was originally approved for.

Thanks in advance for helping this newbie in car financing.

kyfdx

@a471133 said:
First time buying a new car and utilizing financing. For reference I am pre approved by NFCU and they have already sent me the check and instructions to take to the dealer. Their loan department told me that after the deal is done and we agree on a price, then i obviously write the check out for the amount. The dealer then calls NFCU to obtain an approval code and then can deposit the check. The part that is curious to me is that NFCU will send "final" documents including a promissory note to be signed by mail a few days after i get the car from the dealer.

Is this common practice? I would think that I would need to sign final loan documents at the dealership. Is this anything like the dealer spot delivery scams? Just worried that the "final" documents they mail me might change from what I was originally approved for.

Thanks in advance for helping this newbie in car financing.

You are good to be wary.. but, if you want to bring outside financing, there isn't really another way to do it. When the dealer arranges financing, he is an agent of the financing source and can complete the loan documents. Even then, the bank can reject the financing, once they receive the documents.

The procedure you've outlined is how it works with almost any outside financing.

stever

You can also tell the dealer what terms the credit union gave you. The dealer may meet or beat your preapproved loan and you can decide at that point which lender to go with.