Hi all. Hopefully can get some input from the experts around here 
Potentially purchasing a vehicle. Rates came back high 13-15% (expected). My mother with great credit 780 ish is what I saw when they pulled her credit is happy to co-sign.
When approvals came back, rates didn’t really change much. Between 11-13%. I asked the finance manager who is put as the primary. He said I have to be, and it would be illegal or a “straw purchase” if she was.
Is this correct? Only thing I could find in straw purchase is if say she was to purchase the car without my name anywhere on the car. And it is generally recommended to put the person with the higher credit score as the primary.
Thank you.
Potentially purchasing a vehicle. Rates came back high 13-15% (expected). My mother with great credit 780 ish is what I saw when they pulled her credit is happy to co-sign.
When approvals came back, rates didn’t really change much. Between 11-13%. I asked the finance manager who is put as the primary. He said I have to be, and it would be illegal or a “straw purchase” if she was.
Is this correct? Only thing I could find in straw purchase is if say she was to purchase the car without my name anywhere on the car. And it is generally recommended to put the person with the higher credit score as the primary.
Thank you.
@LukeJoseph wrote:
Hi all. Hopefully can get some input from the experts around here
Potentially purchasing a vehicle. Rates came back high 13-15% (expected). My mother with great credit 780 ish is what I saw when they pulled her credit is happy to co-sign.
When approvals came back, rates didn’t really change much. Between 11-13%. I asked the finance manager who is put as the primary. He said I have to be, and it would be illegal or a “straw purchase” if she was.
Is this correct? Only thing I could find in straw purchase is if say she was to purchase the car without my name anywhere on the car. And it is generally recommended to put the person with the higher credit score as the primary.
Thank you.
Check with your local CU. My mother cosign for my fist car my score was 680 hers was 780. I got a 2.74% rate through a local CU. So if they are giving you an 11-13% range thats horrible.
The best strategy to use when financing a car is to arrange for your own financing ahead of time. Once you have your own financing in hand, you can forget the "how much can you afford a month" deal that finance managers like to use and work on "what is the out the door price of the car" deal. When you have settled on an out the door price for the car, then you can reveal that you have your financing already in place. Mr. Finance Manager, my CU is offering to loan me $xx,xxx at x.x%. Can you beat that financing?
Never, never, NEVER let the dealership run your credit before you have finalized the price of the car and make sure you read anything put before you in full before you sign it. It just could include your permission to run your credit and generate 10 inquires.
One of the ways dealerships make money is padding the interest rate offered to you. The best interest rate they could find is 8.99% and they tell you the loan if for 12%. the dealership pockets the 3.01% as a "finders fee."
Your best weapon is your willingness to walk out the door. The best advice is not to give your trade-in keys to the salesman so they can't hold your car hostage. Tell them that you only want to work one deal at a time. After you finalize the purchase price of the car, then you will negotiate the trade-in. Dealerships like to use trade-in value to muddy the waters in negotiations.
Good luck to you.
