Can I get a car this way?
My husband and I would like to purshase a car from a non-dealership. We both have bad credit but was wondering if we could use money that we have saved (good amount to purchase a house later on)....and go to my bank and use it for collateral..like a secured loan?
2006-11-04 12:08:28 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
yes you can.....if you borrow the same amount as you put down as security and you can show that you can service the debt the bank can make allowances for your bad credit.....
2006-11-04 12:11:34 · answer #1 · answered by askaway 6 · 0⤊ 0⤋
You don't have to get it from a dealership. Use the car as collateral, it doesn't matter where you get the car from. Having the cash will definately be a plus for the loan.
There are plenty of places that will loan for a car with less than perfect credit. Try Capital One Auto Finance. I have a friend that got his auto loan through them.
But I suggest that you get your credit issues under control if you plan on purchasing a home. If you dont want your interest rate to be sky high, you need at least 24 months of clean credit history.
Good luck.
2006-11-04 20:13:02 · answer #2 · answered by April M 3 · 0⤊ 0⤋
Yes, you can, as long as you are putting towards the loan as mucha s you will need for the card. It's actually called a secured loan, it will go on your credit as a new loan and as long as you pay it on time it will help your credit. You'd still be paying cash for the car, so you'd own it not the bank, and the loan will help you a lot as long as you pay it on time.
2006-11-05 03:35:02 · answer #3 · answered by NETTA M 3 · 0⤊ 0⤋
a smarter approach would be to pay cash!
this way you will not have to pay a higher price for the car (loan). you will save yourselfs 5 -12% of car cost while it depreciates in value.
please visit daveramsey.com to learn about money before you waste it on a loan.
taking your money to a bank and getting a loan on it for a car is il-logical except to a banker.
2006-11-04 22:26:07 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Pay cash for the car, then figure out how much your payments would have been had you financed it through your bank. Pay yourself back, including the interest.This way you are getting a better return on your money then leaving it as security..
2006-11-04 22:50:50 · answer #5 · answered by barbara w 2 · 0⤊ 0⤋