auto financing w/ bad credit?
I have a low 400 score, I talked to some one that did auto financing for 14 years and this is what he told me. He said go to a reputable big dealership that offers "special financing." He said bring proof of income and that in over 14 years he was never able to not finance someone if they had a large enough down payment. I have saved a few thousand dollars and am ready but I don't know a good company to start with...does anyone know the name of a company that is reputable that does special auto finaning...?
Public Comments
- The only lenders that will offer loans to people with scores that low work only with auto dealers, look in your local phone book and find one that advertises Special Finance and talk to the Manager they will be able to help you.
- You dont say what state you live in, or why your credit score is at 400, which is at the low end of the scale. For example, is there a bankruptcy noted on your report? If there was no bankruptcy, are there unpaid loans & credit cards that still have not been settled? The "Why" your credit score is at 400, and how long it's been at that level makes a big determining factor. Without these details, the information I can give is rather general. But I can tell you that your credit score is considered high risk. Because you score is high risk, accept two facts first...1#.YOU ARE GOING TO PAY A HIGH INTEREST RATE, no matter where you buy your car. and #2. THE FINANCE COMPANY HAS THE LAST WORD, not the dealer. The finance company is the one loaning the money. If they decline you, the dealer cant give you the car. You can try to get pre-approved loan by carsdirect.com or eloan.com, so that when you walk into a dealership you have better bargaining power, and not restricted to just dealing with one dealer. When the salesman asks "How's your credit?", you respond, saying "I'm already pre-approved". Cars direct often advertises on TV about pre-approving people with bad credit. but call them first and ask questions before you enter your personal info on line. Most major auto dealers deal with 2 types of finance companies; specialty finance companies that finance cars for people with bad credit, and the regular companies for those with good credit. Despite the fact the people with bad credit history can go many places to buy a car, many dealers and finance companies still try to take advantage of them, by a high interest rate loan and jacking up the price of the car because they think you can't go anwhere else. But you can. If you dont like the price, simply dont buy it and walk away. They'll be running after you trying to pull you back to the lot. Because your credit score is at 400, many finance companies will want from you past pay stubs going back several months, relatives phone numbers, etc. just in case they have to reposess the car. This is the most I can provide without knowing what state you live in. Last, if you do get approved? Pay your payments "ON OR BEFORE" the due date. Not after. that's what due date means.
* Some answers may have been provided by Yahoo! Answers.