Dee Dee: Low Credit Score & “Special” Financing?
I was told by an auto dealership that because I had a low credit score, I needed special financing. They said that the one of the requirements was that the lenders would NOT ALLOW the purchase of a car with MORE THAN 40,000 miles! This didn’t make any sense to me….I was trying to purchase a USED CAR for approximately $ 8,000.00 and they
want me to buy a car priced at $ 17,000.00. I know what I can afford! WHAT CAN I DO?
Answers and Views:
Answer by Pedro S
got to other car lots…put down a big deposite//…they think the first time your car breaks down you will call it a pile of du du and stop making payments….
The “special financing” that the deal mentioned is a high-interest loan, made necessary by your poor credit history. Your income and debt load will determine how much you can borrow. You should talk to a bank, credit union, or online loan company and not take your advice from a dealer, especially a “buy here- pay here” dealer.Answer by C S
I was told the same thing today by two dealerships 😕 I have a bankruptcy just discharged in October 07. They told me I can get a used car, not new up to $ 11,000 with 13-15% interest. My score is 576. They also told me that I had to buy 2003 or higher and spend more with low miles or the banks wouldn’t finance. I think it’s cuz they know that people like us have no money and are afraid to buy anything over $ 5,000 so they dont’ want to bother financing us. I hear you, I am going thru the exact same thing right now. Sounds like a scam!Answer by jay
The reason is simple, high risk loans, such as people with bad credit are more likely than others to default if their car breaks down. A newer car with less miles is less likely to break down, thereby reducing the risk of you defaulting.
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