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I recently was turned down for an auto loan due to poor credit & the lack of a credit history. The dealer I'm looking at only requires $500 down and then we figure out billing by my pay stubs, etc. I am unable to test drive the car though I am assured that it has been inspected. Also, there are a few scratches & scrapes in the car I'm looking at. Any ideas of how else I can go about getting a car and/or do you think this place I'm dealing with is a little too shady?? HELP!

2006-06-17 13:09:19 · 9 answers · asked by Sean L 1 in Cars & Transportation Buying & Selling

9 answers

If you can't test drive it, pass on it. Find a place that will let you test drive. Having bad credit just means you'll pay a hight interest rate. Any dealer can hook you up.

2006-06-17 13:13:12 · answer #1 · answered by Anonymous · 0 0

You have a right to inspect the vehicle before purchase and have a mechanic of your choosing, at your expense, inspect the vehicle as well. The fact that the dealership doesn't even want you to test drive the vehicle should tell you all you need to know...don't buy it there.

The dealer is relying on your need to have an automobile and poor credit to take advantage of you. Many buy here/pay here lots get the customer in two ways; they sell the vehicle for much more than it is worth and charge a high interest rate. They pretty much want you to default on the payments so they can repo the car and sell it to someone else.

Try to go to a local bank or credit union to obtain financing instead of relying on a dealership. There are also places like Wells Fargo Financial, Bar-None, etc. that will finance higher risk credit customers. Get on the Internet and find one that can help.

The last thing I would try would be to go to the largest car dealerships in the area, preferably one with a sub-prime department. Since they do the most deals they probably have more finance sources and are more able to get customer's financed that small used car lots or small dealerships.

Be sure that you check the value of the vehicle on KBB.com to make sure that you aren't paying too much (dealerships generally pay between 80-100% of KBB wholesale for a used car). Look on BBB.com to see what kind of complaits were lodged with the Better Business Bureau. Also, ask for a carfax report on the used vehicle, a good dealership would provide you with this.

2006-06-17 18:36:46 · answer #2 · answered by Confused 3 · 0 0

First of all, the fact that you can't test drive the car should be a red flag. Why aren't they letting you test drive it? Sounds suspicious to me. I would stay away from them. Chances are they're going to charge you a very high annual percentage rate (APR) - I know people who have paid upwards of 20% APR in deals like this, which is RIDICULOUS. I know you probably want a car but paying a high APR from a questionable place is not worth it.

I can think of a few options for you:
1) Save your money and buy a used car for somewhere between $1000 and $2000. You can find decent vehicles for that price range. Heck, if you live in Georgia or South Carolina, I'll sell you mine :)
2) Get someone to co-sign on a car loan with you. Maybe a relative has better credit than you do - you guys can work out an agreement.

Please, don't get suckered into doing anything without really thinking about it and considering your options. I made this mistake when I was younger because I REALLY wanted a car, and believe me, I paid. If I had been patient and saved a few thousand dollars to buy a used car, I wouldn't have had to go through all high loan payments and heartache...

Good luck!

2006-06-17 13:17:45 · answer #3 · answered by Anonymous · 0 0

Two things should make you steeer clear of this deal. First of all, why do you THINK they wouldn't want you to test drive the car ? If they weren't hiding anything then there's NO reason that they wouldn't want you to test drive. They want your money and then youre "stuck with it" and everything thats wrong with it. ( I'm certain they are offering no warranty either ).

The second is the "inspection". It has to pass a state inspection performed by a licensed state inspector ( in the state that the car is in ), problem here is, the State Inspector could be the car dealer's brother, best friend or just "two businessmen looking out for each other" -- The car dealer has a car that needs to be fixed, as cheaply as possible just to "unload" it on some unsuspecting buyer so, he gives it to The repair shop owner to fix it and, oh yeah, give it a state inspection or, more like it, just slap a sticker on it. Illegal ? You bet ! But, try to prove it.

Don't worry TOO much about the "Buy Here, Pay Here" car lots or places that offer "Guaranteed Financing to ANYONE" but, use common sense and DO NOT SIGN ANYTHING UNLESS YOU UNDERSTAND ALL OF IT AND ALL BLANKS ARE FILLED IN !!!! ( Example, "you didn't qualify for the 5.9% interest rate but, if you REALLY want this car, I will get you financed. Just sign here and as soon as I get the approval, I'll fill in the numbers and mail your copies to you" ..... You'll then get your copies in the mail or go to pick them up and find out that your interest rate is 29.9% and you've already signed the contract !!! YOURE STUCK !!! Don't pay and then youre credit is REALLY messed up.

Bottom line .... Take your time and look around. Test drive. Ask questions. Take it to a known, good, honest mechanic. Check Kelly Blue Book ( www.kbb.com ) and NADA (www.nada.com ) used car values. Ask more questions and DO NOT give in to peer pressure ( Don't buy that $10000 car at 21% interest because you think you'll look cool in it or, because your friends like it ) remember, YOU will have to pay for it and fix it when it breaks. Also, set a limit for yourself and be realistic, HOW MUCH can you afford ? STICK TO THAT LIMIT NO MATTER HOW MUCH YOU WANT THAT SHINEY SPORTS CAR AND NO MATTER HOW MUCH THE DEALER TRIES TO PERSUADE YOU. If you agree on a price of $6500 and you tell the dealer that you can only afford $200 / month ( just an example ) STICK TO THAT NUMBER OR WALK AWAY .... I promise you they will hit you with $300, $268, $245 ( something like that anyway ) but stick to your limit. If they really want to sell you the car, they'll meet your number, if not, you'll find another car somewhere else that will. If you give in and raise your limit ( when you KNOW its more than you can afford ) you'll regret it every month when you have to make that payment.

Didn't mean to get so long winded but, wanted to steer you in the right direction. Hope this helps and GOOD LUCK !

2006-06-17 13:43:18 · answer #4 · answered by jcalaz2003 3 · 0 0

It ability they're going to grant you financing in case you qualify. that's type of a quickly-nutrition eating position promoting they have hamburgers. keep for financing merely like you would keep for a automobile. Do your self a choose and attempt to get pre-approved for a private loan at a economic corporation or credit union in the previous stepping foot right into a dealership. The finance guy on the dealership and his lending companions are looking for his or her maximum appropriate interest and also you want to seem out for yours.

2016-10-14 06:27:57 · answer #5 · answered by ? 4 · 0 0

Sounds shady to me....best bet is find someone through a friend or elsewhere selling a fairly good car for around $1000. hopefully it will hold you over for a year till your credit builds up. But if your really smart refuse credit for the rest of your life.

Good Luck

2006-06-17 13:15:54 · answer #6 · answered by WyattEarp 7 · 0 0

NO! They will charge you insane interest (upwards of 20%). I strongly suggest that you enroll in a credit rebuilding program through your bank.

2006-06-17 13:13:44 · answer #7 · answered by cyanne2ak 7 · 0 0

I recommend, pay cash for everything. A bike will get you where you want to go, in the meantime. --->UCSteve

2006-06-17 13:13:47 · answer #8 · answered by UCSteve 5 · 0 0

bad deal.can't drive it . don't buy it.

2006-06-17 13:19:04 · answer #9 · answered by slayer 2 · 0 0

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