Are car dealerships better more willing to finance cars than banks and stuff like that?

Question

It seems like they would have more of a motive to finance someone a car since they'd make even more money, so are they more willing to finance to someone with not so great credit (a score of 680)?

Answer 1

There is a difference between better and more willing. They are often more willing because they sell the loans. They also normally charge a higher rate of interest. If you cannot qualify through a bank or credit union, I would recommend that you try to have someone cosign with you.

Please realize that cosigner is risking their credit on your ability and responsibility in repaying the debt. Do not ask this if you are not going to make the payments on time and as scheduled.

If a cosigner is unavailable and you have to get a high interest loan, I suggest getting a lower priced car and making the payments to establish better credit before buying the car of your dreams.

Often the key to building or rebuilding a credit rating is to delay gratification.

Answer 2

Sometimes the dealer will get you financed even if you have trouble on your own. And while 680 isn't a wonderful score, it isn't awful either, so if you can show you likely can and will make the payments, they might get you financed.

Answer 3

Car dealers DON'T finance cars. They just do the paperwork for the actual lender. Most auto manufacturers have finance divisions. Many loans processed by dealers are made by local banks.

Answer 4

very good question -- but it boils down to cash flow -- they need the steady stream of a complete price to replace the car you buy and unless they have a very high turnover they do not have the cash on hand -- banks are loaning out other folks money for a fee!!!