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Before you walk onto the car lot to shop for a car, you should already have financing secured from another lender for the purchase. Arriving at a dealership with a loan already in place makes the process of buying a car much easier and quicker because you can skip the whole process of applying for financing through the dealership. You also have the same buying power that someone paying with cash has. For example, if you have a pre-approved loan for the amount of $17,000 but the car you want costs $18,500, the dealer may simply slash the extra $1,500 from the price since you have the check ready to go. The real beauty of this scenario is that even if you have a good interest rate from a lender, the dealership may be able to beat the rate and get you an even better loan. Although it is true that you will have to sit through the whole process of applying for the loan at the dealership, if they can get you a much better interest rate then it is worth it. You will simply need to cancel the other loan and go with the loan offered by the dealership.