Buy a Car With Bad Credit
Tuesday, August 31, 2010
Buy a Car With Bad Credit Car Loans
To buy a car with bad credit, with no money down, you need to know a few things.
The most common reason is because it adds profit to the sale. The other less common reason is because it's needed to lower the total amount financed for approval by the lender. Trying to figure out which is the real motivation to pressuring you for cash is a little difficult so long as, you are depending on the dealer to get you approved.
Most people think that if they have bad credit, they have to use the financing offered through the car dealership. After all, the local bank won't give you a loan right? This is a common mistake that can cost you thousands of dollars in outrageous finance charges.
Let me fill you in on a little BIG secret...
Car dealers submit your credit application to lenders. The lender responds with an offer. Let's say that they approve you for a rate of 9%. Guess what? The dealer, knowing that you know you have bad credit will try to convince you that you are approved at 12%. The 3% difference becomes nothing more than profit that the finance manager gets paid a commission on.
You can buy a car with bad credit with no down payment and also with lower interest rates by simply avoiding the dealer finance department .
1 comments:
There are few reputable car financing companies that do this also who even give few advices about terms of period and secrets behind these dealers. I'm glad that there are few people that still care about other people with regards to purchasing a car.
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