Your trying to get an auto loan for bad credit but every dealer you apply through wants a deposit. If you have bad credit and you want to get a car with no deposit, there are a few things that you need to know….
There are a few reasons that a dealer wants a deposit
The more money the buyer can put forward at the start of the sale, the less amount that needs to be financed. This makes it easier for the loan to be approved by the finance companies. Sometimes, it adds profit to the sale for the dealer. As long as you are relying on the dealer for the finance, you will be reliant on their rules and requirements.
Also, the dealer gets a commission based on the type of loan they can get approved.
Commonly, most people think that if they have bad credit, they have to take the financing offered through the dealership, right? This is not your only option. You may have tried a bank for a loan and been rejected…Dealership fiancee can get very expensive with large and ridiculous finance costs.
The LARGE secret is:
Car dealerships always have two prices on the car. The ticket price and the “floor price.” The floor price is the real price. This is common knowledge when you are buying a car. This also applies to the finance interest rates, but in this case the dealership applies to the lender with your application. The lender than comes back with an offer. Suppose you get an approval of 7%. The dealer knows that you are trying to get an auto loan for bad credit, and will advise you that the interest rate is 13%. The 6% is pure profit that you pay for. Your payments are a lot higher just because the dealership has marked up the interest rate.
Be prepared:
You can get a car with no deposit and bad credit and control the interest rate that you pay by not applying through the dealership. If you can find and prearrange your own financing (people do it everyday) then you can be confident enough to get the car of your choice on your terms. You have the power, not the dealership, and can negotiate a great REAL price on the car.
Get an Car dealers will be fighting over you for your business. Get an auto loan for bad credit and buy a car with no deposit today!
