Dealership Financing – Don’t be an Ignorant Bad Credit Car Buyer

Car shopping is fun but waiting for car loans isn’t. Many car buyers wait for months to get car loan approval. However, there is a way to complete your car buying and car loan shopping quickly. Dealership would certainly save a lot of time and save you the trouble of rejection from traditional banks and lenders. Don’t take tension of your bad credit score because dealerships have experience of working with sub-prime borrowers.

Although dealerships are available in almost every town and city, car buyers stay away from them. There is a constant fear of deception and fraud. But, you must understand that dealers cannot continue their business if they cheat customers. And, most buyers are cheated because of their ignorance. Don’t be an ignorant bad credit buyer. Know how to tackle dealership financing and emerge successful in the car buying pursuit.

What you need
 

Know your requirements. You should determine the kind of vehicle size and performance you want. Also, don’t just select one car. Keep two or three options with you. It will help you when your most preferred car is out of stock.
 

Don’t be Ignorant
 

Ignorance about credit score is the most common cause of dealership frauds. Dealers justify higher rates by explaining you about your terribly bad credit history. But, in reality, the truth may be different. So, it is very important to know your current credit score. Your credit score may have improved over the time. If you remain unaware of your credit score, you will give dealers a chance of offering you higher rates.

It is also important to do your homework before visiting the dealer. Prepare a budget. Calculate your debt-to-income ratio and ascertain whether you will be able to manage the additional debt. It will help in choosing the best bad credit dealership financing deal for you.

Be Clear not Desperate

You need a car, but your neediness shouldn’t reflect in your communication with the dealer. If he comes to believe that you are in desperate need of a car, he will provide approval at higher rates. He may try and sell you a disastrous car. So, make sure that you visit a dealership with a practical approach and not an emotional one.

Matters of Money
 

Don’t confuse the Maximum Suggested Retail Price (MSRP) and the sticker price. MSRP is the price that the manufacturer recommends the retailer to sell. The sticker price is the amount that the dealer is looking to get on the automobile. It includes the cost of the car plus the dealer’s profit.  Often, dealers list MSRP on the car as well as the sticker price. They manifest that the sticker price is lower than the MSRP and give you a feeling that you are getting a profitable deal.

However, you can negotiate the dealer for a price below sticker price. Tell them that you know about the manufacturer incentives offered to dealers. Most car buyers don’t know about this. But, you can ask the dealer to pass on some amount of the incentive benefits to you. Also, check for customer cash/rebate programs. Such programs will reduce the price.

Don’t get lost in Numbers
 

Many dealers believe that car buyers have the memory of a goldfish. So, they try to confuse you with numbers. They ask your budget and start confusing you with discount rates, MSRP, down payment ratio, interest rates, monthly payments, etc. Don’t fear this number-dumper.

When the dealer starts his number game, ask him to give you loan rates and everything else in writing. Also, ask for incentives. Go home and study them. You can use online car loan calculators to calculate your exact monthly payments and total interest amount. Take the decision only when you have considered everything in detail.

The Coin lying around
 

If you have spare money, you can use it as down payment for securing bad credit dealership financing program. Inform the dealer that you are ready to make a down payment. Tell him that you want the advantage of reduced price against it.

Don’t worry if you do not have cash to make a down payment. If you have an old car lying around, you can sell it and use the money. Another alternative is trade-in. But, do remember to calculate the resale value and trade-in value of your old car. This way you will be able to make use of your car in the most profitable way.

The Most Crucial Thing
 

Most importantly, don’t become relaxed after you get auto loan quotes from the dealer. You must analyze them. Many dealers let you believe that you are getting the most affordable loan program. They tell you how low your monthly payments are. But, you must not concentrate on monthly payments only. Calculate APR. It will show you the annualized cost of the loan. It includes the car loan amount, rates, plus other expenses. It will give you a better idea of the loan quotes.

If you are fine with loan quotes, concentrate on the loan contract. Check that everything you negotiated is there in the contract. Don’t believe anything unless it is in writing. If you have any doubt, clear them with the dealer. Sign only when you are fine with every term of the contract.

Remember that you will get the best bad credit dealership financing program only when you are calm and cautious. So, don’t worry. Go out there and buy the car of your choice. You are ready for dealership.

Dealership Financing – A Perfect Car Buying Guide for Better Auto Loan Deals

It’s “Dealership Financing” and not the Devil’s Workshop. Many people detest dealership financing because of stories related to dealership scams. But, it’s one of the easiest ways of getting a car loan. The best thing about a dealership is that you get your car and car loan at the same place. You can certainly get better deals from a dealer if you are prepared for the car financing process. This article will help you prepare for a car loan from an auto dealership.

The SCORE

It is very important to know your credit score before going to the dealer. You must have heard about scams related to credit scores. But, if you know your accurate credit score, no dealer will be able to offer you higher rates under the pretext of bad credit scores.

The CAR

When you go to a dealership to select the car, test-drive is a must. You must check the Odometer for miles. Don’t buy a car with more than 80,000 miles because it won’t last long. Also, ask your trusted mechanic to inspect it. It’s always better to get expert opinion.

The benefit of dealership finance over private party auto sale is you get special offers. Many dealers offer extra warranty and cash rebates on car sales. If you are confused in choosing a car, you can select on the basis of offers.

M.S.R.P.

Most car buyers pay the MSRP or the list price. But, this is where they go wrong. You don’t need to pay the “Sticker Price”. This is because dealer’s profit is added to it. You can negotiate it and pay a lower amount.

The PAYMENTS

When you are done lowering the car price, talk about finance with the dealer. The salesman will concentrate on monthly payments and talk about lowest payments. But, you must look at the big picture. Consider the total loan amount and total interest. It is quite possible that lower payments for a long term will increase the total interest amount.

The CONTRACT

After car financing has discussed, read the contract. Don’t go for “spot financing”. Most dealers allow you to take the car without getting you approved for a car loan. It is quite possible that the dealer is unable to find a lender for you. In such circumstances, you will have to take back the car to the dealer. So, avoid “spot financing” and take delivery of the car only when the loan contract is signed.

Being cautious is the key while working with a dealer. If you follow the tips mentioned in this article, you will certainly get the very best of auto financing.

Fast Auto Loan Approval can get you approved for dealership financing. Lowest rates on auto financing deals even when you have bad credit score. Apply now and get ready to get best rates!