I wouldn't have to put down any money, does this mean that they interest rate would be grossly inflatted? I didn't want to continue to talk to the car sales men because as you know they type of approach they take in customer assitance in the favor of themselves covered with speacial offers with all types of strings attactched and small print. What type of advice would you give a first time buyer like myself?
2006-10-05 07:40:32 · 13 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
It means that the person who co-signs the loan would be responsible for the loan if you fail to make good on any payments.
If you are a first time buyer, then I would go to www.kbb.com and read up on being a first time buyer. They have excellent advice there for a person in your situation.
2006-10-05 07:43:25 · answer #1 · answered by JaMoke 4 · 0⤊ 1⤋
When you are a first time buyer the bank does not want to take a risk on a lot of money because they have to rate you on 3 things. Ability ; Willingness : HIstory. If they are not happy with either of these then they will not lend or want a huge down payment. That downpayment is to show your commitment to pay out they loan if you have really invested yourself. if you get a cosignor they now have 2 people who want to pay this loan back which makes this a much more secure deal for the bank. In terms of interest the safer the loan the lower the interest, They are not going to ack up the interest because of a small down payment. Dealers are not really scams, the big milk companies make more money that the car dealers. Those special offers are to just get people in the door but I have learned you have to be realistic when negotiating with a car lot. Most people are just scared, because there is a lot to know about how this works... Good Luck!
2006-10-05 07:48:02 · answer #2 · answered by I am Jared From Subway 3 · 0⤊ 0⤋
With little or poor credit lenders like to see either a co-signer (someone willing to take the financial responsibility if you miss payments) or a healthy downpayment.
Interest rates *are* higher for those with no or poor credit or slow payment history, and most times having a co-signer with a good credit rating helps you get a better rate or not need anything down.
My best advice for the new buyer is this
1.) Bring your own financing
(auto loan from your bank www.roadloans.com and Capital one are just a few ideas) That way you know in advance what you can afford.
2.) Negotiate the selling price (the top number) first,
if you have a trade check www.kbb.com and see what it is worth on trade in and don't let them give you less than that for your car.
and
3.) Be willing to walk away.
If they don't meet your price leave.
Many times they will call you back with a lower one,
if they don't... go somewhere else.
4.) Make sure you get a copy of all negotiated prices.
If "Joes chevy" is willing to sell you a car for 10K, and you have it in writing,
you can take that to "Bob's Chevy" and they may be willing to sell you the same car for 9500.
5.) If you are buying new,
ask to see the invoice, and don't pay a dime more than that MINUS rebates.
2006-10-05 09:17:38 · answer #3 · answered by msdagney 4 · 0⤊ 0⤋
You must have bad or no credit and if you had a cosigner they would have to pay if you couldn't. Cosigning a loan is not a good idea. When I bought my first new vehicle I wanted to get a loan through GM-AC and when they checked my credit they said I didn't have any credit so I couldn't get the loan. I had just recently sold my motorcycle so I said what if I put $3000.00 down. The salesman checked and said they would go for that. If I were not able to make the payments my $3000.00 would have gone down the toilet so That was my incentive to make the payments. That was in 1989 and I still have that vehicle. If you can get credit keep up with the payments because if you have a good credit score your insurance will be cheaper. What ever you do don't buy more than you can afford.
2006-10-05 07:56:01 · answer #4 · answered by Captleemo 3 · 0⤊ 0⤋
Being this is your very first car purchase - the best thing you can do is buy a car directly from a private party. Drive it for a while, build up your credit rating and then go to a dealership for the car you really want.
I would never co-sign for someone else. What happens when that person can't pay.................I'm stuck with payments on something I'm not driving.
Good luck!
2006-10-05 08:16:52 · answer #5 · answered by Anonymous · 1⤊ 0⤋
i do no longer think of they are in a position to make you come back the motor vehicle, as long because of the fact the motor vehicle is insured the deepest loan agencies frequently do no longer care whose call that's in. that's no distinctive than a parent figuring out to purchase a motor vehicle for a infant and having the youngster get his very own coverage . . . rules would be humorous from time to time nonetheless. ideal after he have been given out of highschool my husband had an analogous project -- he traded in his truck for a sparkling (used) vehichle. They authorized him for the deepest loan, he signed the papers and left. the following day they spoke of as him and informed him his very own loan did no longer bypass by, he mandatory a co-signer. He suggested he could no longer get one, so he'd carry the truck returned and p.c.. up his previous one. The became that they had already bought his previous truck. on the grounds that they could no longer provide him returned his truck someway they have been given his very own loan artwork, i'm uncertain what they did. besides my factor is motor vehicle dealerships would be loopy from time to time . . .
2016-12-26 10:31:40 · answer #6 · answered by Anonymous · 0⤊ 0⤋
My advice is to put as much money down as you can afford and negotiate the APR.
Also check out your banks deals, you don't have to get dealer financing.
Getting a co-signer means they have to pay for the car if you default on any payments.
2006-10-05 07:43:46 · answer #7 · answered by Shockey Monkey 5 · 0⤊ 1⤋
try to get an auto loan through your bank, not the dealership..and a cosigner in theory should bring your rate down. and next time you go to the dealership take someone who has been through buying a car with you...
good luck
2006-10-05 07:58:05 · answer #8 · answered by turner32542 3 · 1⤊ 0⤋
There are some auto programs such as Costco and Sam's Club where they have a discounted price already set out for you. If you have a membership or even thinking about getting a membership, you should call these places and get a referral to your local dealership.
2006-10-05 07:44:35 · answer #9 · answered by j.tech_77 3 · 0⤊ 1⤋
I'm sorry, I would never co-sign for anyone. The first payment you miss and they will come after the co-signer because they know you have no money
2006-10-05 07:43:53 · answer #10 · answered by Anonymous · 0⤊ 1⤋