Buy a Car with Bad Credit With No Money Down
September 3, 2010 by John38
You’ve got bad credit and dealer after dealer is wanting money down. To buy a car with bad credit, with no money down, you need to know a few things.
First, there are only two reasons that a dealer would want a down payment…
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 dealerships mark up the price of the car. Everyone knows that.
Did you know that they ALSO mark up the interest rate? Yes, they do. They 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. Guess you pays for it… you. Your payments go up 10, 20, 30, 50 or even $100.00 per month simply because the dealership marked up the interest rate.
The truth is this. 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 altogether. If you know where to look and prearrange your financing (yes it’s done everyday), then you can have the confidence to walk into a dealership, pick out the car of your choice based on the amount the finance company preapproves you for and had the dealer a check. This puts the power of negotiating price in your favor.
Car dealers will be jumping over backwards for your business.
Find Legitimate Lending Sources Here: Buying Cars with Bad Credit.
Jason Lanier, Expert Author.
http://EzineArticles.com/?Buy-a-Car-With-Bad-Credit-With-No-Money-Down&id=2515580
seek a financial consultant to make your money work for you, and not the other way around.
Hi Vani,
Your point about maintaining road safety is well taken, however, please consider the following points:
1. Rs. 200/- could be 5% of somebody's monthly salary.
2. If the driver makes it once a week, then it means 20% bonus for him. In most industries, including IT & Finance, people would take seemingly 'reasonable' risks for a 20% bonus. So, he has acted humanly to a carrot of an additional bonus.
3. What we feel risky, the driver may not feel it to be risky as he is in control of the vehicle. You can feel the difference when you are in a driving role and you are in a pillion role.
4. This concept of rotation of drivers will not work as the initial pick up timings of the drivers are fixed and the pick up time for the station near the railway is also fixed. So, even if there is a turn for a particular for a particular driver and he comes just 2 minutes before 9:00 am for a 10 minutes ride to the railway station, it does not help the purpose.
5. The issue is primarily floated by the people who have provided the incentive scheme. Those are the people are probably not in the best judgement as to where and how to cut the costs and to what benefits and risks.
6. May be, the finance department is also equally to blame because in turn, they are forcing the transport department to cut costs such that the travel department is coming up with these incentives to reduces costs, so that the people in the finance department may get their 'bonus'.
7. While your complaining is correct, if I were you, I would complain about:
a. Wrong areas/ways for cost rationalizations in the travel / finance department. That is the issue to be resolved.
b. Driver going beyond a reasonable speed limit, if he is doing so. This is a minor effect. If the issue is resolved, this will disappear by itself. This is not what needs to be solved.
Hope you see my thought process….Complaining about the driver is easy and harmless….Would be interested to know if you would take your 'COMPLAIN' to somebody above, who can deal with the finance department / travel department to set things right. Let me know.
- Discoverer.