Should I get a loan before or after I choose a used car?

thepeted

I'm looking for a used ford focus and can't decide how to go about buying one. I've done my research and I know how much I'm prepared for the age and spec I'm looking for - about £5000-£6000.

I can't decide whether to take out a loan before I go properly looking around the dealers or wait until I've found the car I'm after. Do I stand to get a better deal if I have the funds in the bank and can pay on the spot? Or could I miss out on haggling a good finance deal and better price on the car from the dealership?

Hope that makes sense - can anyone help?

Pew_Pew_Pew_Lasers!

Sort out your financing privately. Don't pay for dealership finance, its more expensive.

Walking in with a pocket full of cash (not literally) is a great way to buy a car, and always haggle on the price. If they don't want to haggle, go elsewhere.

cyclonebri1

Be aware though that many of the larger places now operate a fixed price/one price for all system. You can barter till your red in the face, they won't budge. As said if you have set the amount you are going to spend get the cleared funds in your bank account as things will be able to move much more swiftly then.
Or you can do what I do which is to always ensure I have saved enough money to buy the next car before I even think about changing. I know not everyone can do this but it should be the target as its a much more sensible approach IMHO:beer:

thepeted

Thanks to you both for the advice. cyclonebri1 - I presume you are referring to the car supermarket type places... I have heard this also. Likely to be buying from an approved dealership and I understand there is plenty of room for maneuver!

As for the saving option - maybe for the next car.....!

Thanks again.