Dealers: 10 Mistakes that Most People Make

What You Should Know About Dealership Subprime Loans Latest statistics show that a lot of Americans do not have good credit. In fact, most people don’t – and it’s nothing to be ashamed of. 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 think you might have bad credit, it’s even more crucial to be prepared. 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 Path To Finding Better Sales
Subprime vs. Prime Borrower What is the next step after getting your credit report? Based on your credit score, the dealer with classify you as either a prime or subprime borrower. If your score is above 680, consider yourself lucky – you fall into the prime category. 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. However, this is not to say that a dealership should take advantage of you because you have poor credit.
Doing Vehicles The Right Way
MSRP and Bad Credit: You Don’t Have to Pay the Full Price Some dealers are so unscrupulous that they’ll tell a customer who has bad credit a horrible lie. For instance, a dealer may indicate that the customer has to pay the full MSRP due to the bank’s regulation. This is not only wrong, it’s a bold-face lie. Generally, banks do not force the dealers to charge a specific amount of money for the vehicles they are selling. Apart from this, there is no bank that would want bad credit car buyers to pay the full sticker price of the vehicles they want. In fact, banks would want you to pay less since you already have poor credit. If anything, they want you to pay less. Financing Approval is Only for 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. You should walk out of a dealership that insists you have to purchase extended warranty for you to qualify for car financing. When going to apply for dealership financing, keep the tips above in mind.