@Anonymous wrote:
@jim44 wrote:
Nice car but you should consider other things as well. A 2005 BMW z-4 requires premium gas, full coverage insurance, expensive parts and repairs.... seriously not trying to talk you out of the car.
You could try a credit union and may have a good chance at financing. As far as the dealership finding financing for you, you will have to prove residence ( curent utility bill). Not too sure about POI... but most likely bank statements showing consistant deposits for income verification. As far as term is concerned..... as it is a 10 year old vehicle you could very well get a 48 month term or 60 months depending on the lender. One good positive is the car has less than 100,000 miles. NADA clean retail is 12K. That alone can affect APR. Not too sure about the APR as this also depends on which lender. I've seen 10 to 15% from WFDS and 20 to 28% from other subprimes. You have a decent down payment 2k to 3k. Was the price your dealer quoted $10k the bottom line or is before tax title and down payment? The reason the dealer quoted you a higher price if they did financing is probably due to an acquision fees the lender charges the dealer to fund the car you are buying. Best of luck... I have a feeling you'll do fine.
jim44 -
Could you explain this in a little more detail please?
I will be buying another car in the next couple months and I dont understand why they would need to charge me more for the car and also a high rate for financing.
I understand a higher interest rate if your credit profile is lower than others, its just the acquisition fee part.
If for example, I can get approved at DCU for a 3 year old car with 35k miles, no acquisition fee involved, right?
Just puzzled by this fee.
thanks
ASBinJAX,
Dealer financing such as Buy Here Pay Here is different than lenders obtaining financing for you with a subprime lender. If a person has good credit the lender sees it as little risk if any. With a lower score and income, subprime lenders see the borrower as risker and charge the dealer an acquition fee to fund that customer. Dealers are prohibited from passing this fee to their customers so some (not all) pass the cost along with a higher price quote or it's covered under their "dealer fee". They can't show this fee on a Bill of Sale. I've seen acq fees as high as $1800. and as low as $50 depending upon the risk. There is a good chance the subprime lender will prohibit the dealer from making "points" on the deal also.
Buy Here Pay Here dealer charge a higher monthly payment and extended term to make up for interest. You just end up paying a lot more than the cars actual retail value.
