Even,with,Down,Payment,You,Can finance, share, loan Even with No Down Payment You Can Still Buy a New Vehicle
Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track
If you have bad credit and no money for a down payment, buying a car can be a really difficult task for a number of reasons. First, everyone knows that auto dealerships mark up the cost of the vehicles that they sell in order to make the largest profit possible on them. The best way to get that sticker price reduced is to offer the dealer cash, which gives him more profit in his pocket (since he doesnt have to go to the bank for the money). That means people with bad credit and no money to offer as a down payment are at an extreme disadvantage when shopping for autos.Why Car Dealers Work This WayThe purpose behind car purchase negotiations is to make the most money for the dealership and for the sales person you are working with to buy a car. Though the sales person will always act like your friend especially when it comes to financing remember that the money that they make on the sale is directly related to how much they can get you to pay for the car or truck you want. They are compensated based on commission, not salary.Car salespeople will ask you for cash as a down payment for the purchase of a new or used vehicle for two reasons. The first is due to finance restrictions. If you have bad credit, it is likely you can only qualify for so much money through dealer-sponsored finance programs. If you want a car that is $12,000 and only qualify for a $10,000 loan, you need to make up that $2K through a down payment.However, and really this is the more important factor, that $2,000 cash goes right into the dealers pocket, whereas the loan money gets tangled up in bank business. Commission-generated sales people love cash purchases because the salesperson can take their portion of the commission home in a day or two instead of waiting weeks for the loan to process.The Tricks Do Not End ThereIn a situation where you do not have money for a down payment, dealerships can still work with you, but they will often do so as if they are doing you a favor. They will use your bad credit as an excuse to manipulate you and get more money. How is this done? Through the one thorn in the side of every bad credit borrower: interest rates.Especially when you lack a down payment, many car dealerships will try to make up some of the money they lose from the cash sale by marking up your interest rate. For example, if a dealership-sponsored lender offers you a 9% interest rate, they will quote you at a 12% interest rate. That way, they can pocket the extra 3% interest.How to Beat the SystemSo what can you do? The easiest way to by-pass this whole crazy process is to by-pass the dealership finance center completely by walking in with cash in hand through a pre-approved private auto loan. Instead of dealing with a car dealership who has a vested interest in getting you to pay as much as possible, you can get your auto loan before you get your car though private lenders who specialize in bad credit lending.Once you get your preapproval, you will know exactly how much you can pay for your vehicle and hand the dealer a check. This way, everyone is happy and you avoid the run around that most dealership-sponsored financing creates when you have bad credit and no down payment.
Even,with,Down,Payment,You,Can