2007-12-25 13:03:12 · 11 answers · asked by Davo 2 in Cars & Transportation ➔ Buying & Selling
Just about any bank or lending institution will be willing to make that loan. Any lender looks at the risks of the loan vs. the rewards! The fact that you have no credit history makes you a higher risk. Under normal circumstances, banks do not like to make loans to people without a track record of paying on time! They use your past payment history to predict if you will be responsible or not!
Other factors also come into the equation. A big factor is the amount of equity (down payment) is in the deal. In this case, the bank is going to have a security interest in a car that sells new for $19,000, and will be worth at least $14,000 as a used car! If they have to repossess the car, they will be able to sell it and get all the money and fees back with no problem. People putting large amounts down also are much less likely to default on a loan, seeing as they stand to loose a lot more by doing so. If the payments were a problem, you could sell the car for more than you owed easily!
As long as you do not have seriously bad credit, any car dealer can get a $3000 balance financed on a $19,000 car!
The term we use in the business is "co-signers named George". This refers to George Washington, and means you have lots of money down.
2007-12-25 13:24:17 · answer #1 · answered by fire4511 7 · 3⤊ 0⤋
If you offer to put 16,000 down on a new car that is worth 19,000 and you have the proof you have the 16K, the dealer will deal with you.
2007-12-25 13:10:51 · answer #2 · answered by PuttPutt 6 · 5⤊ 0⤋
1. You can tell the dealer you will give him $16,000 CASH-- period. If he doesn't accept that, walk away. Cars are not moving like they used to. You have the power in this situation.
2. If you have $16,000 cash and no credit, you could easily get credit:
Go to a bank and tell them that you do not have any credit, but would like to start establishing some. Ask them if they would give you a LOW INTEREST credit line for $5,000, which you would secure by depositing $5,000 into a certificate of deposit (CD) at the bank. (This would provide more interest than a regular savings account.) That may sound stupid, but the interest from your $5,000 CD should balance out the interest from a LOW-interest credit line of $5,000.
Then take your $11,000 cash and your $5,000 credit line from the bank (which comes with checks you can write out) to the car dealer that will accept $16,000 for the car you want.
You would get your car, and also be establishing credit by "paying back" $5,000 to the bank, like a normal bill every month. You could pay it off fast, like within a year, and not really pay much interest at all. After that year of payments on time, etc, you'd have excellent credit. It would be easy to get other types of loans after that for MORE MONEY at the same bank.
2007-12-25 13:24:53 · answer #3 · answered by Anonymous · 0⤊ 3⤋
maximum probable's specific. the full component is floored people driving 10 3 hundred and sixty 5 days previous autos do no longer try this for the relaxing of it. it quite is because of the fact they cant have sufficient money the rest. So knocking 2 grand off say a 10 grand motor vehicle nonetheless leaves you with 8 grand to hit upon. it quite is a pointless gimmick that wont make any impression what so ever :)
2016-10-09 04:24:22 · answer #4 · answered by ? 4 · 0⤊ 0⤋
16k is a lot to put down for a $19,000 car. I am positive that the dealer will work something out with you.
2007-12-25 13:26:03 · answer #5 · answered by Pat B 2 · 4⤊ 0⤋
I think you can safely assume that the dealer will accept an 80% down payment and find a way to get you the remaining balance as a loan.
2007-12-25 13:08:48 · answer #6 · answered by busterwasmycat 7 · 5⤊ 0⤋
NEGOTIATE WITH THE DEALER
THE BEST WAY TO NEGOTIATE WITH THE DEALER IS TO DETERMINE THE WHOLESALE PRICE BY CONTACTING YOUR LOAN OFFICER AT A LOCAL BANK OR CREDIT UNION, PROVIDING ALL THE DETAILS ABOUT THE VEHICLE (MAKE, MODEL, YEAR, TRIM LINE, ACCESSORIES, MILEAGE), AND ASKING FOR THE VEHICLE’S “BLACK BOOK VALUE.”
THAT’S THE AMOUNT THE BANK LENDS TO DEALERS TO BUY THAT CAR (YES, DEALERS TAKE OUT CAR LOANS, TOO), AND IT’S THE CLOSEST THING YOU CAN GET TO WHOLESALE VALUE FOR THE VEHICLE.
2007-12-26 02:28:52 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Use the $16k to take a secured loan from the bank.
The interest should take care of the difference -- about $160 monthly profit take care of the majority of the payment amount.
2007-12-25 13:08:07 · answer #8 · answered by ★Greed★ 7 · 1⤊ 3⤋
"U"...must be......?....out of u'r marbles 2 waste $16,ooo on a $19,ooo car ....once "U" take the car out from the dealer ....the car is worth $9,ooo-11,5oo...."SO"....what? deal do "U" get????..."i"...do not spend more then $2,5oo 4 a car & i get prety dam-good-deals; how long is not raining inside or i don't have 2 fix "ANYTHING" 4 the next 2yrs.the car is "PERFECT"....in 2yrs.from now "CAN" u get back $16,ooo 4 "IT"?????????
2007-12-25 13:34:04 · answer #9 · answered by SANTINEL 3 · 1⤊ 4⤋
No. The amount really doesn't matter that much. If you don't have credit, you don't have credit. Doesn't matter if it $3,000 or $300.
2007-12-25 13:08:19 · answer #10 · answered by oklatom 7 · 0⤊ 3⤋