Re: Re: New grad w/ credit problems: Help! Really!!??? Demand for housing & cars has been at record highs for the past 4 years. In the NY/NJ area, dealers act like they are doing you a favor letting you test drive & purchase the vehicle. Usually you must sign their credit application & qualify before a test drive. Many times specific vehicles are not available or you must pay over MSRP. Many dealers do not allow you to finance thru your credit union, bank or other third party financing. It must be arranged at the dealership thru their F&I dept only. If you read the small print in the ads or call and speak to the salesperson or F&I manager they will tell you their policy on financing thru a credit union. If you want to go thru a credit union for an auto loan, ask for a specific referal. If they can't give you one, don't waste your time since your FICO will drop by 5 points due to inquiry.
Re: Re: New grad w/ credit problems: Help! 01/03 Brand New Ford F-150 4WD, 4.9% DH's scores? Mid 500's.
Re: Re: New grad w/ credit problems: Help! "With demand for cars far exceeding available supply, the customer has little, if any bargaining power over the listed price on the sticker, ESPECIALLY with less than perfect credit." What an absurd, absurd statement! blueeyes ================= nickel Is full of it. ----------------------- I Have a Dealers License: I buy at wholesale or I walk To the next seller. Nick is just the kind of sucker the dealers are looking for. The END ************************* LB 59
If you choose to pay cash for a car (and I'm not saying that you should), you can avoid being taken on the "front-end" (car purchase price, as in the principle) AND on the "back-end" (car payout price via financing) by: 1. Tell them that you are interested in dealer financing (but only let them use one source with ONE inquiry), and give them whatever leeway they want on the financing terms, within reason. However, negotiate hard on the actual purchase price, and get it as low as possible. If they refuse to agree to a decent purchase price, walk out. You want them to think that you're willing to allow them huge profit on the financing (back end) IF they give you a low purchase price (on the front end). 2. Make sure the loan is a simple interest loan with no prepay penalty (if that even exists in car contracts). But do this discreetly, by reading the finance contract carefully before signing. 3. If you do this on a Saturday afternoon, AFTER you have signed all documents and taken possesion of the car, you can go in Monday morning and give the F&I manager a cashier's check for the purchase price, saying that you've changed your mind re financing and just want to pay it off. Get your finance documents back from the manager and tear them up. Get proof of having paid the purchase price of the car. If the manager won't let you do this, just overnight the payoff to the finance company that day. This method will cost you an inquiry and if you are forced to send a payoff to the finance company, maybe $25-$75 in two days worth of interest, but if you are able to reduce purchase price by $1000 or more, then you've come out ahead. The poster stating that it is a seller's market is absolutely incorrect and you should ignore that advice as the reason you have to pay in cash. The car market is a buyer's market. If you choose to finance, American finance companies are giving away great deals (i.e Ford Motor Credit, GMAC). Read this book and learn it well: Remar Sutton's "Don't Get Taken Every Time"
"Many dealers do not allow you to finance thru your credit union, bank or other third party financing. It must be arranged at the dealership thru their F&I dept only." Any dealer that wants my business will. Nick, you are clearly delusional.
"Many dealers do not allow you to finance thru your credit union, bank or other third party financing. It must be arranged at the dealership thru their F&I dept only." Any dealer that wants my business will. --------- Amen to your last statement. It's like I am going to buy from a dealer who will not let me finance in my own way. What if I want to pay the full price of the car with a cashier's check and I don't need financing? Will they *make* me go through their financing anyway? Geez. Not to mention that it's not about a dealer allowing me to do something in the loan\pay off department. I want to buy a car. I want to finance it through my CU like I have always done. If he doesn't like it, well, there are more than a handful of other dealers who will not have a problem with that. PawMix
Re: Re: New grad w/ credit problems: Help! First, once again: Those great deals are more people with very good credit ratings (680 and above). If you have imperfect credit, you are stuck paying in the mid teens for a used car. GMAC, Ford credit etc... have a huge number of customers, and record demand for there products. Bad or imperfect credit is something they don't want to deal with. I don't have the time to play mind games with a car dealer. In the past few months, there have been many times when the deal fell apart because they could not or would not sell the vehicle to me at the agreed upon price unless I financed thru them. With my FICO score (mid 630's) the best rate quote I have gotten has been 14.9%, and I couldn't put down more than 10%. If you come with a cashiers check intending to pay off the vehicle at time of delivery for the previously agreed upon price, many times they will void the deal at that price , unless you are willing to pay a higher price to cover the loss of interest. You won't get a car at the 'time of delievery', and good luck trying to get your certified check back into the bank. Usually you must be prequalified thru their finance dept. even before you test drive the vehicle. If you come with your own financing, you will pay full MSRP for the vehicle + options + taxes & fees.
Re: Re: Re: New grad w/ credit problems: Help! Its been said before, and I will repeat it again. You obviously have no idea what you are talking about, and I have yet to figure out why you continue this ridiculous information. DH was financed by Ford in January, scores in the mid 500s at 4.9. A very sweet price on the truck to boot. They rolled over on the price with one BS trip to the back office. Why? Because DH is in the biz, he knows the layers of paper that make up pricing. Why do you think these dealers are offering these crazy interest rates BECAUSE THEY ARE HURTING FOR THE BUSINESS!!!!!!!!!!!!!!!!!!!!!! Why in Winnie the Pooh's name would Mitsubishi offer 0 down 0 interest and 0 payments for one year if demand was greater then supply? You should check out an economics class at your local elementary school.
Re: Re: New grad w/ credit problems: Help! I have never in my life (and it's been a pretty long one) EVER signed a finance document before I test drove a car. I have to give them my driver's license (after all, they are letting me drive, so that makes sense). I have financed two cars through dealers with imperfect credit, one while I was deep in credit problems and had everyone cutting my limits and jacking my rates. I have never paid more than 8% through the dealer. Last year I bought a car after totaling my old one, so I was in a hurry to buy. We negotiated the price, THEN we talked about financing. They went through their sources and approved me at 8%, but by now my credit was better. So I told them I wanted to finance through my credit union if I could. They gave me three business days to get a check to them and they would just void their deal. I barely made the three days but got 5% from the CU. And no problems when I went in and handed them a check for the amount of the loan. They gave me the "payoff" papers, processed the credit union lien (all while smiling) and I was on my way. So, all I can say is go to a reputable dealer and they'll be fair. Since we've gotten off track, to the original poster, I agree that you may be better off getting a good used car for a year or so. Get one that's only a year or two old with a warranty. Someone else has taken the depreciation for you. You'll have a lot of other expenses if you're fresh out of college, and this way you'll be able to manage and build better credit while cleaning up your past credit. And, put as much as you possibly can away. If you put it away now, it has much more chance to grow. If you don't know the Rule of 72, learn it. One more doubling before retirement is a BIG difference. I think Butch posted a lesson on the Rule of 72 here, search for it. Don't be like me--I could be looking forward to retirement if I hadn't had to have everything when I was young. When you don't really start to save until you're in your 40s, it's really an uphill battle.
Re: Re: New grad w/ credit problems: Help! You obviously have no idea what you are talking about, and *I have yet to figure out why you continue this ridiculous information. jlynn ***************** * I guess he just insist on being a sucker in spite of himself; or maybe he's one of those un reputable dealers trying to further his agenda.
Re: Re: New grad w/ credit problems: Help! You should check out an economics class at your local elementary school. jlynn ================== YA think they will accept him seeing as how he got kicked out of the school of common sense? The END ************************* LB 59
Re: Re: Re: New grad w/ credit problems: Help! Have you ever met an Economics Instructor that trully has common sense?
Re: Re: Re: New grad w/ credit problems: Help! Nick, Your statements are obviously uninformed on many counts. To the original poster, you should not take his statements as authoritative.
