I'm trying to get a new car...my husband doesn't have perfect credit and i have no credit at all...We tried to get one from CarMaX but got denied...I was just wondering would it be better and easier to get a New car...I heard that it was easier to get them financed!!! Can anyone help?
2007-02-15 00:22:12 · 4 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
With respect to your Carmax experience... they generally offer a program called "Drive Financial" that will finance first time buyers if you legitimately have no previous car buying history. His "credit challenges" may be hurting your ability to get a car.
Older cars normally have higher interest rates than newer cars since the finance companies figure that you will keep a newer car longer and an older car has more of a chance of breaking down. The number one reason that cars are repossessed is that they break down, and normal people cannot afford repair costs & car payments at the same time.
However, remember that the interest rate should not be the only thing that you want to consider. As soon as you drive a new car off the lot you lose about 30% of the value, so if you go new be sure that you'll keep the car as long as you finance it for, if not you'll end up having to roll over negative equity (i.e. you owe more than it is worth). There are used car places that offer good warrantees on their vehicle to cover the car, for example, carmax offers extended warrantees on all they sell.
If I were you I would check around to your local credit unions, or smaller banks, and see what they can offer you. Sometimes they are much more flexible in regards to who they qualify.
Good Luck!
2007-02-16 01:24:41 · answer #1 · answered by Blah 2 · 0⤊ 0⤋
The concept of financing used vs. new is really just the same thing.
BEWARE: Used cars (2005-below) carry a higher Interest Rate when financed. It's not a big difference but it can make the difference of 1 percentage point. 2006-07 are considered "new" (as of this writing) and you will pay the interest rate accordingly.
Good Luck!
.
2007-02-15 09:19:41 · answer #2 · answered by rob1963man 5 · 0⤊ 0⤋
A new car dealership can finance most anyone. Even after bankruptcy. A used car dealer or private sales often don't use lending institutions that lend to new cars. Interest rates are higher with more needed for down payment.
I went to a Pontiac dealer, I couldn't get a $12,000 loan for a used car but they gave me a loan for a new car for $29,000.
Often payments on a new car are less that a used, because you can take longer to pay it back.
2007-02-15 08:31:14 · answer #3 · answered by tim s 2 · 0⤊ 0⤋
Try ebay.com my dad is always selling cars VERY CHEAP!!! His username is:
Bender!2006
2007-02-15 08:26:31 · answer #4 · answered by Anonymous · 1⤊ 3⤋