I went to a bank in order to get preapproved. The banker told me everything was fine and that they need a car purchase agreement and letter of origin and proof of insurance. I don’t get it. How do I get these things without actually buying the car? And how do I buy a car without having some kind of financing already in hand when I am ready to buy? Can somebody explain the process?
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The process is very simple. Shop around until you find a car that you like. Negotiate your best price with the dealer. When you are comfortable with the deal you are getting, you will sign a purchase agreement. You then have to obtain a certificate of origin for the particular car you are purchasing to prove that the vehicle exists. You will also need to arrange insurance to be effective the day you are to pick up the car. Bring all of this to the bank and they will arrange to pay the dealer for the vehicle.
Those are the items you’ll need for final loan approval and processing. The bank doesn’t "write the check" until you have an actual purchase contract. Usually, the dealership will hold the car until you return with the check from the bank.