I want to buy a new/newer car. My credit is in the dumper. What do I say or do?

Question

I have a good income of 70K+. What should I say to the salesman to get the deal made. I have a clunker of a trade in. I don't want to put squat down. Any help out there? I hate car salesmen. I want to know what to say and do to get it done in as quick of time as possible. Then get out of that den of salesmen before the greasyness envelopes me.

Answer 1

This question is funny to me, since I used to feel the same way! But then I got a job at a dealership and worked there for about 5 years where of course I met my boyfriend of 5 years! So i will say that not all salesmen are out to get you! But my best advise on getting the best deal is this- 1st look on the dealerships websites because the price of the car online is usually not the price on the car if you just walk in the store, 2nd- if you are buying a used car, then many dealerships can finance you through there own bank (not all of them have there own) but only up to $10,0000 and your interest rate will be high - if it is a new car you will have to put some money down, the dealership may be filled w/ snakes but they can only do so much for you, then it is up to the bank-(yea the bank may say "oh we finance at 12% but the dealership will raise that up a bit to 13-14%)
But my 3rd suggestion would be to see if since you make good money, you didn't say if you have a bank account, since if you have a good history at your bank they may be able to finance the car for you! Sometimes you can get a better rate through your own bank instead of the ones the dealerships deal with!
My last comment is this- every dealership or sales person I have known have a similar pay rate and when they sell a new car they make the same amount from selling it at $1 over invoice or $1000 over - the only way they make money really is when they sell a used car since then they may tell you that it is a $10,0000 car when it is only a $5,000 one! So just do your research on banks and on cars!
As for your junker sell it to a junk yard or someone on the street cause you won't get squat for it at a dealership!

Answer 2

If you're looking at minimizing your time in the dealership find out if the one you are shopping has a service called "Loan by Phone." This gives you the opportunity to call in your credit information to the dealership and lets the finance manager look over your application before you ever set foot on the lot. Some of the more established dealerships may even have this option available over the internet so you won't need to call during business hours.

I also have a tip for you for dealing with "greasy" salespeople. If you go into the dealership with the mindset that the salespeople are "greasy" they will read it on you immediately. While you can still a good deal with a condescending attitude you can forget about getting good service. The age of the shifty salesperson is over. With edmunds.com, kbb.com, nada.com, and all kinds of other information available at the consumer's fingertips, the dealer's power is gone. The manufacturers have an emphasis on service. If you do business in any domestic model dealership(GM, Ford, Dodge), you will get hit with survey after survey, because now dealership money is tied up in customer satisfaction index. Dealers expect their sales staff to provide good service, but don't expect it from them if you treat the sales people like they are beneath you. Just remember that the sales person with two months experience has probably sold more cars than you'll buy in your whole life. Their knowledge can be an asset to you if you treat them like one.

Answer 3

No is the proper response. However, it does put you in a much better position to get approved. If your credit is sloppy, you will still have to pay a high interest rate and you still have to qualify for the remaining balance due. Money down helps but is not necessarily a fail safe mean of getting a car loan. If you have enough to put 1/2 down on a car, then you have enough to pay off the collections, charge offs and so forth that are bring down your score. Most of these places are willing to accept a lesser amount to clear the account, so you may not have to use all the money in order to help your credit. Why not use that money to do that and wait 60-90 days to check your score, and see about getting a car loan then? Still come to the table with some money down say $2000+.

Answer 4

Do your research in advance.
Tell the salesguy the truth. Your looking for a credit rebuilding deal.
Look for a car no less than 3 years old.
The car should have less than 50K miles
No manual transmission cars
Stick to a price cap of $12,500
bring $1000 down.
bring proof of income
bring proof of residence (phone bill)
bring 3 references
Have these verified by the finance manager before you look at any cars.

remember, this is not your dream car. This is your credit rebuilding car but make sure you like it enough to stay in it 3.5 to 4.5 years. Pay on time so you don't have to ask this next time.
Good luck.

Answer 5

I suggest that you go in with enough cash to pay a fair price (blue book value) on the car you want.

Why you wouldn't want to put "squat" down is beyond me. The interest on a car loan will eat you alive. You'll pay for the car almost twice over before a typical 5-6 year loan is repaid.

Answer 6

They are going to pull your report so tell the salesman up front what your situation is. ALL dealers have access to bad credit financing, my car is on a bad credit loan, i little higher interest, but it gets you in a car, and boosts your credit score if you dont screw up. good luck

Answer 7

Drive your clunker, save your money and pay cash in a couple of years. If you make $70k, it should be easy to save $20k for a new car in two years.

Answer 8

tell them exactly what you just said, and dont take any guff from those swine and know what vehicle you want and can afford cause they will always try to get you to buy more than you want or need. Most places dont care about credit as long as you have a job, dont forget to take the degreaser with you

Answer 9

Most car dealerships will get you approved for credit. If you finance through the dealer, they make money on the financing, so it's in their best interest to get you approved.

Answer 10

Say the same thing I say. " I'll be paying cash" gets you a car every time