Is this a scam? Because I'm looking to buy a car soon & I have bad credit. They want me to put $500 down. I know the interest rates would be sky high, but what other catches or schemes do they have?
2007-06-11 09:00:17 · 14 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
These are scams they some times put in extra charges.. also the car may depriciate faster than the payments if decide to trade you may owe more than the cars worth Iwass stiffed on my first car Call the BBB. they may help buyer beware
2007-06-11 16:08:18 · answer #1 · answered by Grand pa 7 · 0⤊ 0⤋
First of all they will expect you to come up with a larger down payment they say that to get you in the door, you will have an interest rate of 16-21%, and they will tack on $4-5K on top of the car because the finance company accesses them a fee to finance you. Then you will have to keep the car a minimum of 2 years before you will not be upside down (if you ever are) and before your interest rate will really change with getting a different car. I bought a 2003 Extended Cab Silverado their online price was 14,999...I paid 18999, with 2500 down....they will try and put you in something that more than likely will not work....if you HAVE to have a car or REALLY need to rebuild your credit, make sure you buy something that is reliable and keeps its value like a Toyota, etc. Hope This Helps.
2007-06-11 09:21:09 · answer #2 · answered by akr_tx 2 · 2⤊ 0⤋
traditionally the price of the car is marked up higher check with your insurance company ask them what the pay off on that car would be if it were totaled..they would make a settlement with the bank ..then you would have to finish pay for the car that you dont have...the dealer has recourse with the bank...meaning if you fail on the loan they repo it and he has to buy it back from them this is why he over prices the car and remember you have to put collision on the car to protect the banks investment..go brand new and lease it make your payments on time ...make sure its a car that you can afford a year from now every credit card company in the world will be offering you there card..go back in after a year and see if they will rewrite the lease if they wont buy the car..this way your paying a high interest rate for a year if you purchase it after the year with no late payments your interest rate should come down a lot
2007-06-11 09:20:55 · answer #3 · answered by james a 3 · 1⤊ 0⤋
Okay, I actually put those ads out every week. And what we hope is that your credit is better than you think it is, but it is still possible to get almost anyone financed, as long as they have a good income (at lease $1800 a month) and have at least $2500 down. Chances are that if you only have to put $500 down your credit is better than you think.
Most people don't realize than a credit score is not how bad your credit is but is actually how likely you are to file Bankruptcy. Alot of people who file Bankruptcy have great credit scores because they have no debt, and can get a car and a good rate.
10 years in auto biz
2007-06-11 10:24:29 · answer #4 · answered by misty m 4 · 0⤊ 1⤋
You are paying exorbitant interest rates. That should be incentive enough to STAY away.
Pay cash for your car, you're not so good with credit. It doesn't make you a bad person, it just means you and credit don't mix.
Just save up your money, buy a $1000 car and drive it for a while. Then, continue to save and move up in car as you can afford it.
The alternative is just going to stress you out and compound your problem.
2007-06-11 09:07:33 · answer #5 · answered by Anonymous · 1⤊ 0⤋
They normally charge you more than the car is worth. If you miss a payment you in worse shape than you are now. But if you have to go this route good luck. Make sure the car is a good one. Many car lots know how to "doctor" the car to make it look better than it is. Bring someone that knows a good amount about cars that could care less if you have a car or not. Many people want a car so bad they over look the bad stuff.
2007-06-11 09:05:41 · answer #6 · answered by robert 4 · 2⤊ 0⤋
The catch is that your interest rates are extremely high, like 30%. You still need to know about cars, and try to avoid buying a salvage/rebuilt auto, because it has a lower resale value and most people don't want to buy these cars. I would try to get a loan elsewhere, interest rates that are sky high is wasting your money.
2007-06-11 09:05:24 · answer #7 · answered by fisherwoman 6 · 2⤊ 0⤋
You bet , there are going to be interest rates that are out of sight. Buy something that you can afford, get a credit rate that will allow you to by a car.Not just pay interest !
2007-06-11 09:10:40 · answer #8 · answered by DR DEAL 5 · 1⤊ 0⤋
Yes there is a huge catch, every dealer will claim to be the best and will get you approved.
Go to this web - page on my website http://www.usedcartips.org/CREDI.html it will explain how dealers deal with poor credit and how you can improve your bad credit.
2007-06-11 11:14:35 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Yep!
Usually you need a large amount to put down. Also, your monthly payments are probably going ot be outrageous. Or a combination of both!!!
2007-06-11 09:39:36 · answer #10 · answered by jambalayasoup 3 · 0⤊ 0⤋