What You Should Know About Dealership Subprime Loans
Latest statistics show that a lot of Americans do not have good credit. There is nothing to be ashamed of if you don’t have good credit. If you don’t have god credit, you should not be ashamed of yourself. There are many reasons, some of which are beyond your control, that can lead to you having bad credit.
Find out whether you qualify for car finance from a dealership before starting to search for vehicles. Generally, dealers can offer you bad credit loans to allow you to own the vehicle you have always wanted. Here are some things you should know prior to apply for bad credit finance from a lender.
Know Your Credit Score
Before starting to shop for a car, you should find out your credit score. If you do not know you have bad credit but the dealer knows, getting a great car deal can be difficult. Even if you have poor credit, you can still get attractive car deals from the dealership.
The Essentials of Dealers – The Basics
Are You a High Risk Borrower?
What is the next course of action when you have your credit report? Based on your credit score, the dealer with classify you as either a prime or subprime borrower. Prime borrowers are those who have a credit score of over 680. If your credit score is below 680, you are considered a subprime borrower. If you are a subprime borrower, the chances of getting a great deal from a dealership are quite slim. Subprime borrowers don’t always qualify for the best rates and financing terms. This is usually the way dealers operate. What you don’t need to deal with is dealers taking advantage of your challenged credit, and pulling the wool over your eyes.
How to Achieve Maximum Success with Dealers
You Don’t Have To Pay MSRP Just Because You Have Bad Credit
Some dealers are so unscrupulous that they’ll tell a customer who has bad credit a horrible lie. The dealer will say that they have to charge full MSRP for the vehicle – that the bank requires it. This is a lie that you should not fall into. No bank has any stipulations on how much the dealer has to charge you for a car. Moreover, banks would not stipulate that bad credit borrowers should pay the full sticker price. In fact, given that you have poor credit, the banks would want you to pay less.
To get Approved for a Loan, Buy Extended Warranty
This trick is one that dealers use. Uninformed customers with bad credit make dealers lick their lips with thoughts of crazy high profits. If a dealer ever tells you that the bank requires you to buy a warranty because of your credit – turn around and walk out immediately!
When going to apply for dealership financing, keep the tips above in mind.