How do I negotiate a car deal when I already have a preapproved car loan?

So I got preapproved for 12,000 at Navy Fed Credit Union (I only plan on spending at most 7500 of it though). Now, I know not to disclose that I'm preapproved with them to begin with, but how would I go about negotiating the price without saying that I will be paying with a loan? When exactly do I disclose to them that I have a loan to pay for the car? Basically, all in all what can I do to maximize my benefit when dealing the car I want? I also have about 2500 cash saved up that I can spend so am I also able to use that and then cover the rest with the loan? For example, I'm looking at a Honda Accord listed for 6995, can I use 2500 and pay the 4500 hundred and taxes and such with my loan?

Lol

Don't disclose anything until you are about to fill out paperwork

You need to ask your lender how it works. They may not be interested in a tiny loan.

Lots of places will not lend less than $7500 on a car.

You need to find a car to buy

No way on God's green earth will any lender let you have $12,000 on a $6995 car. (That's the maximum they'll lend you, period, but they expect their collateral to be worth the size of the check they're writing.)

Didn't you ask this before?

You don't TELL them anything about how you intend to pay for the car and you don't mention financing at all until you're ready to sign the paperwork. The dealership doesn't care how you pay for the car - if you pay cash or if you arrange with a lender to finance it - it's still a "cash" sale for the dealership. The only type of auto dealerships that finance vehicles themselves are those small used-car lots that sell mostly junkers.

I used to sell used cars, so let me tell you a couple few things:

1. Don't disclose anything about finances, how much you have, or how much you're willing to spend. And for God's sake, if you have a trade-in, DON'T tell anyone until after the deal is made. After you make your final deal, THEN tell them about your trade-in. They will only ever give you "fair condition" for your trade-in, but even that can take an extra $500 to $1000 off your final sale price.

All dealers assume that it's going to be a credit/loan type deal because people don't just walk around with $8,000 in their pockets. And the more you have to spend, the more you will spend, period. I'm an expert in making you spend money, and even an extra $20 a month will add up huge with interest over time. And the down payment will go directly to my pocket. That money's mine, not the dealership's. They actually hate it when people come in with a cash sale because there's no need for a down payment. That's your best friend, cash.

2. If you're wanting to make payments (blech), have a monthly payment in mind and don't go a penny over. The dealership WILL sell you that car as long as they're not losing money on it; i.e., if they bought the car for $5000, they will sell you that stuff for $5050. They won't be happy about it, but they will do it. And don't believe the BS about, Well, I have to go ask my manager about this… The salesman is capable of approving the deal all by him/herself.

3. Car salesmen typically work on commission, and their commission rises with the number of cars they have sold per month. So if you come to my dealership and I have only sold one car this month, I'm going to be begging you to buy a car from me. And if I've sold four cars this month, teetering on the edge of a higher commission, I might just offer to have your child. At my dealership the commission structure was 25% for cars 1-4, 30% for cars 5-7, and 40% for 8+ cars sold in a month. So I have real live incentive to sell you that stuff, and the more money I get you to spend, the more money I personally am going to make. So you're holding all the cards, get it?

This gal came in to my dealership looking for a car, but she was only willing to spend $107 a month. She would not even go to $108 a month. Now, she is screwing with my commission, but dang, was I proud of her. She didn't budge off of that $107, not even to $107.25. I made $50 commission, and I was pleased to do so.

Which brings me to another point: At my dealership, we had a list of cars that needed to sell by date; i.e., Car A has been on the lot 30 days, but Car D has been on the lot for 180 days. Anyone who sells Car D will get an extra bonus. It doesn't mean it's a bad car, just that nobody's bought it and they're anxious to get rid of it, so be aware of that. In other words, if you ask them about the oldest cars on the lot, or get a list of the ones they're trying to move, you can likely make an even better deal for yourself because they want to move those cars.

What else can I tell you? Absolutely get the Car Fax. DO NOT buy a car that had frame damage, was totaled, nothing like that. Do not be careless of life to save a buck. Better to spend the money on the car than on your casket. Also, when you test drive that car, test drive the dog sh*t out of it. Don't be crazy, but don't be gentle. AND get YOUR mechanic that YOU trust to have a look at it. The girl who was going to buy the car for $107, the car she wanted would have killed her. After she left my managers were laughing that she was going to be paying for a bum car for years. I overheard that and couldn't let that fly. Yes, I most certainly did call her and tell her not to buy that car; get a different one, and if she had to go to a different dealership to do it, it wouldn't hurt my feelings. To my surprise, she came back to me, and I was able to get her a T*TS car for the same amount of money.

And buy the car at the end of the month, not the beginning. They get new cars in and have to get the old ones off, so your best deals are coming at the end of the month. If I can think of anyting else, I will let you know.

You need to ask your lender how it works.

People have their own methods.
First of all, the pre-approval is also contingent on the NADA book value of the car. They won't lend more than book value typically and will want to see the car or at least photos. With that in mind, buying a new car and negotiating is different from a used car. Check local laws of how a vehicle is transferred. There's an exact procedure for buyer and seller in each state and follow that carefully. Sometimes, seller keeps the license plate and you can't legally drive a car without license plates. You must have insurance. There's a registration procedure.
People buy cars without knowing how its done, and screw up big time. Often, a signed title, which may need to be notarized is required. Smog inspect, bill of sale, etc etc. Check procedure where you are located.

When you have a car in mind-
First, check that the seller is authorized to sell the car. They need to prove they own it. More details below on it.

Then, assess its market value as precisely as possible with a tight range. Have all of the model, sub-model, year, mileage, overall condition, personal inspection of defects, and every option in the car available to you. There are web sites that list the standard features for each sub-model. Go to Edmunds.com and assess the average retail and their wholesale number. Also check at KBB.com, and cars.com and autotrader.com to get a good idea of what it should sell for in the area. Average mileage is 12,000 to 15,000 miles per year. Above that is high mileage and below is a low mileage vehicle. The more miles on the engine, the more important regular maintenance becomes.

And, do NOT have your heart set on any one car. If you really want THAT car, you will pay more.

Then, if it is a buy-here/pay here self-financing dealer, be very wary of what they are selling. You do better with private sellers and smaller dealers. A large dealer or new car dealership selling used cars is fine. Often, a new car dealer will have a used car on special. It sells quickly.

And, if asked about financing while looking, you have your own financing unless they can beat your APR.

Then, if there's no warranty, that is it is an as-is sale, you should have a private good mechanic inspect the car and its systems. That will cost you money. You do that before you close any deal even if you have to pay someone to go to the car. If they are not willing to have the car inspected at your expense, walk away from the car.
You can and should order and pay for a detailed history. They do start with a basic free report:
http://www.autocheck.com/vehiclehistory/?siteID=2190
https://www.carfax.com/

With all that, you have:
The car's ownership validity, its condition, and market value. You have an assessment of what needs fixing and what it may cost to fix it. Negotiating technique can vary. My brother writes a price on the back of a business card and says it is valid until he buys another car and just walks away. He doesn't want to negotiate and instead says "This is what I pay." The price offered should be out the door and you need to determine who pays transfer fees. Large dealers usually handle paperwork. Private sales should be at the government place of transfer if at all possible. I usually offer dealer wholesale plus transfer fees knowing the dealer can usually get that easily. Rare they will accept it. Listen to their counter offer. If at or above retail, you usually are wasting your time. You can't know exactly what the final price is in negotiating, but at least with knowledge, you are armed properly.

I need to frind