I'm trying to buy a car but am being turned down saying I need a co-signer. I'm 25 and make decent money, not really anything too bad on my credit but not much good either. So many people have said to me "they can do anything they want for you, if they want to get you in a car they will" I thought this was the bank's decision on whether or not they wanted to take a risk. How does this really work?
2007-08-28 08:55:35 · 3 answers · asked by Melissa F 2 in Cars & Transportation ➔ Buying & Selling
Dealership/auto manufacturer financing can be a good deal when they are trying to unload cars. However, the low interest rate deals are usually reserved for buyers w/ excellent credit to minimize their risk.
Since your credit seems to be so-so, you may need a co-signer to get a good or decent interest rate OR the dealer may be using this as a ploy to get you into some other financing trap.
Check w/ your credit union or local bank & see if you can get a better deal since you do your banking there. (i.e. checking account, savings,etc.) Sometimes, a credit union or bank will offer a better interest rate if you allow direct payment from your checking account.
If you belong to AAA, ask your agent if your local division offers new car buying programs (pricing & financing).
For more information about car financing: http://www.dontgettakeneverytime.com/
http://finance.yahoo.com/how-to-guide/loans/18444
For general information about cars: http://www.cartalk.com/ & Consumer Reports.
Lastly, bring an experienced friend or relative to help you make sure you are getting a good deal. If you must get a co-signer, ask a parent or trusted relative. Do not ask a friend.
2007-08-28 09:28:52 · answer #1 · answered by Treadstone 7 · 0⤊ 0⤋
The car dealers really want to sell you a car, and may give you credit even when the banks won't. The catch is that the interest rate will be high, and the terms will be bad. You're much better off if you can get bank or credit union financing.
2007-08-28 09:01:59 · answer #2 · answered by hottotrot1_usa 7 · 1⤊ 0⤋
Generally if you finance through the car manufacturers finance division (for example, GM's finance division is GMAC), you're likely to get financing, because GM wants to sell you the car, and they don't want their own internal finance department to prevent you from doing so.
That being said, if your credit is so-so, and no co-signer, you're likely to pay a higher interest rate than someone with a better credit rating.
2007-08-28 09:00:34 · answer #3 · answered by This is SPARTAAAA! 5 · 1⤊ 0⤋
try Barnone they find you a car and approved with out any credit at all
2007-08-28 08:58:58 · answer #4 · answered by Anonymous · 0⤊ 0⤋