Re: I can help, I manage a car dealership
04-20-2012 07:22 AM
First and foremost, thank you UpNComing for all the insight you have provided. While I have only read about 10 pages of this thread, it appears that you providing a service that is priceless to alot of people.
I am looking to finance a car as soon as 2 weeks or as late as October depending on what I can find out about lending. My score is somewhere in the 580 range. I have a pretty decent verifiable income. I am looking to get a Certified Used Accord for ~$18k ('09 with ~36k miles as I wish to have a worry free car for at least several years) out the door and can put down as little as $4k right now and as much as $10k in a few months. As far as auto adjusted FICO. I financaed a car in 04 and hit some issues in 04 having several 30 60 or 90 marks until finally paying off the car in full so this may hurt me.
The dealer near by claims to work with people with less than excelent credit, and I am wondering what I can expect to deal with? While I am not exactly okay with a 20% interest rate, I am willing to stomach it until I refianance or pay off early. I would be extatic to get in the low double digit range and would be satisfied somewhere in the 15%. Is there an estimate of how much to put down vs what rate I can get?
My other option is to obtain some financing and go through a friend who buys cars through an auction for a used car dealer. I have never been to an auction and have not clue what kind of deals I can obtain. In addition, what do you think of the 2013 GTI and what is a reasonable price I can swing OTD? Thanks
I don't want to steal UpNComing's thunder as he is the car expert. There is one thing I thought I could help with in your post though. The late payments you mentioned, were they all in 2004? If so, they should no longer be on your credit report. Late payments only stay for 7 years from the date they were late. At this point, then, that account should be appearing as a positive auto tradeline, which should help your auto-enhanced score. That is just my $0.02. Best of luck on the financing and new car.
When you go in there to work with the dealership, I wouldn't take the first financing offer he throws on the table. Dealerships will sometimes throw something out there hoping that you will bite.... My dealership on a saturday got me approval for Ford Motor Credit at 13%. That was really more than I wanted to pay, so i indicated that I would go shop rates with my local banks and get back to them. Lo and Behold, on Tuesday of the following week they had me an offer from a local credit union at 7.5%. Don't commit to buying until you are comfortable with the terms. If they try something sleazy like losing the keys to your trade, or putting down numbers on the sales invoice that you didn't agree to, don't be afraid to walk out.
Sometimes when dealers claim they can work with people with less than excellent credit, they think they can steamroll you into a deal because of your "limited" options due to your credit. If they start acting condescining or giving you grief then its time to walk and find someone else! There are a lot of shady things that dealerships can do, so beware! If you have a friend or relative that you trust to help you, bring them along. It does't hurt to have two sets of eyes and ears looking at a deal before its a done deal.
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