How to Use a Blank Check Auto Loan

  • by Johns Hopkins FCU
  • 11/30/21
an excited couple smiling at the dealership and showing the keys to their new car

Blank Check Auto Loans from Johns Hopkins Federal Credit Union are a fantastic way to finance your next vehicle. 

It is much easier and more convenient than you might think to use a Blank Check Auto Loan to buy your next car. Keep reading to learn more about this unique financial product and how to apply!

What is a Blank Check Auto Loan? 

Blank Check Auto Loans are similar to getting preapproved for a home mortgage. These convenient loans give you approval for vehicle financing up to a certain amount, so you can then go shopping.

Many people prefer obtaining third-party financing such as a Blank Check Auto Loan over the in-house financing services of dealerships. Generally, rates and loan terms are better with credit unions and small local banks than with large automotive dealer’s financing departments. 

Blank Check Auto Loans help keep consumers from being taken advantage of at the dealership or attempting to finance a vehicle they can’t actually afford.

With our Blank Check Auto Loans, you will save time by having your financing complete before going shopping. Best of all, at the time of pre-approval with us, you will lock in your interest rate for up to 60 days. At Johns Hopkins Federal Credit Union, you will also earn 1% cash back and you can defer your payment up to 90 days*

Another advantage of our Blank Check Auto Loan is that your final loan amount includes all taxes, fees, and other costs like credit insurance and warranties. There are no hidden fees and no surprises at closing.

How Do I Use a Blank Check Auto Loan? 

Blank Check Auto Loans are considered as good as cash, which allows you to negotiate the best price at the dealership. They are accepted by any franchised dealership and save you time in the car buying process. 

With this convenient loan product, all that is left for you to do is visit the dealership, pick out your vehicle, agree on a final out-the-door price, and sign your check. Having a Blank Check Auto Loan is a great bargaining tool when you visit the dealership and shows exactly how much you can afford to pay.

It is important, however, to be sure you do not let a dealership "upsell" you in an attempt to match the amount of your Blank Check loan or treat it as a fixed-price loan. In fact, you may want to hold back from sharing the exact amount of financing you have obtained until your pricing negotiation is complete.

You can also utilize the addition of a down payment to purchase a vehicle that has a purchase price higher than that of your approved amount. This combination of a down payment with financing can help you afford the car of your dreams and allows your car shopping process to be a bit more flexible.

It is important to note that our Blank Check Auto Loans are not available for some vehicles including:

  • Vehicles more than seven years old

  • Vehicles with more than 125,000 miles

  • Blank Check Auto Loans can’t be used for motorcycles, RVs, and commercial vehicles.

How Do I Apply For a Blank Check Auto Loan? 

It is in your best interest to know your credit score and financial health before you apply for any car loan. Your credit score will greatly affect what interest rate you receive. Generally, lenders will want to see that you have a credit score of 650 or higher. If your credit score is lower than this, you may want to take some steps to improve it and wait to apply until your score has improved. You can also consider using a co-signer with a better credit rating.

It can be helpful to have a general idea of what type of car you would like to buy and how much you will need to finance. Once you’ve taken these steps and gathered the necessary documentation such as proof of income and employment information, you are ready to apply for your Blank Check Auto Loan.

The best part about getting a Blank Check Auto Loan from Johns Hopkins Federal Credit Union is that you can apply online, in person, or over the phone!

Get Started with a Blank Check Auto Loan

Ready to get your blank check and go car shopping? With a Johns Hopkins Federal Credit Union Blank Check Auto Loan, you can head to the dealership with confidence and financing in hand. With us, you can rest assured that you are receiving the best possible interest rates and friendly service.

If you’re in the market for a new car (or will be soon), click below!