Blank Check Auto Loans

Blank check auto loans are loans that prospective car buyers take out from banks or other third party lenders before visiting a dealership. A bank car loan that is pre-approved for a certain amount is called a "blank check auto loan" because the buyer can use it just like a check at a dealership.

Essentially, a bank car loan means that a buyer will not have to seek financing help from the dealer. Although it may mean that the loan value exceeds the value of the car, the blank check auto loan is popular in car shopping because so many dealers like to mark up interest rates. This is sometimes called "dealer reserve" and is worked into the purchase price. Other times, dealers will take advantage of customers with poor credit.

All of this can be avoided by getting a blank check auto loan from a third party before shopping. For more information and advice on getting blank check auto loans, take a few minutes to read through our collection of expert articles and advice.