The process of getting a car loan from a dealerships with bad credit
Getting a car loan when you have poor or bad credit can be difficult if you approach it the old way people did. In the old days a person would sit down at a phone and flip through a phone book and call car dealership after dealership asking if they would work when them even though they have poor credit. And a funny thing happened. Just about all car dealerships would say “oh sure we do. Come on down and let’s talk” because they know their chances of selling you a car was greater if you were there in person then on the phone. The person would drive down to the car dealership and meet with a sales person. Right there the game would begin. The sales person would ask if they were looking to trade their current car in as a down payment? The person would normally agree. So the sales person would say to them “May I have your keys and our people can take a look at your car while you’re test driving a new car” After the test drive of a new car you’re all excited about buying a new car. The sales person then says “well lets go inside and run some numbers and see what we can do for you” From there you go into their office and they have pictures of them with their kids on their desk trying to show how they are a devoted family person and all that. I can tell you I know there are sales people that have taken pictures with their friend’s kids and put those pictures on their desk to make people think they are a devoted family person. It’s a lie and don’t fall for it. After they try and soften you up with their kids pictures they have you fill out a huge 7 page application telling them your life story. Like the address of where you work? Why do they need to know that? Are they going show up at your work and embarrass you if you don’t make your car payment someday? After you fill out the application they take it to their “finance manager” who is always in another room. 10 minutes later the sales person comes back and talks about how they were in the other room fighting for you and that due to you having bad credit this is the best they can do for you. For a $15,000 car loan you’re payment even with your trade in is going to be $397 a month. You ask why the payment is so high and they say it’s because your trade in doesn’t have much value and it’s a 20% interest rate because you have bad credit. You gasp and say “really?” The sales person says “and after the financial collapse banks aren’t lending to people with bad credit anymore” But from the look on your face you just want to just leave and the sales person can tell so he tries another angle and says “let me see if I can go talk to the finance manager again and see if they can get you a better deal” 5 minutes later they come back and say the finance manager said if you can put $1000 and trade your car in they will drop the payment to $380 a month. Knowing you can’t really afford a $380 car payment you tell them you can’t do it and just want to get your keys and leave. All of a sudden, they are trying to find the person that has your keys that appraised your car and just can’t seem to find that person? What they are doing to stalling for time. From there they know you are ready to walk away and are trying to keep you there. The sales person tries 2 more ideas. They bring up a lease or a longer loan term. For those that don’t know what a lease is. It’s the same thing as leasing an apartment. You’re renting a car. Most leases go for 2-3 years. So you make a car payment that is smaller then a normal car payment. In the example above your lease payment might be $289 a month rather than $380. But after 3 years you must return the car back to the dealership and you get nothing! Just like leasing an apartment you can write rent checks for 3 years, but you don’t own any of it after 3 years. The other option to try is going for a longer-term loan. Usually a car loan is for 5 years. However, with the price of cars climbing higher and higher each year car lenders have had to find creative ways to finance the cars. One such idea was to extend the length of time to pay off the car, so the monthly payment was smaller. If a person were to get a 7 years car loan for the same $15,000 car the payment would drop from $397 a month to $333. That is great news. The sales person now looks like a hero don’t they? After finding out you could finance the car for 7 years and only have a payment of $333 a month you can’t wait to sign. So you sign and go into the mysterious “finance managers” office at the end to sign and they try pressuring you into all kind of stupid warranties for your new car that are complete lies. Then they add a bunch of garbage fees like a “doc fee” of $700? Really you’re going to change a person $700 to send a packet of paper through a printer? After they are done you $15,000 loan is now $16,400 and you’re $333 monthly payment has jumped to $364. You’re so confused and so sick of the going back and forth you just want to leave, but you really love the car so in frustration you just sign the docs. Shake the hand of the finance manager and leave and go clean your old car out of all your old stuff and thrown them in the trunk of your new car and leave. Feeling used and lied to, but happy for your new car. How about a much less stressful idea. Apply online for a car loan at JustGetMeApproved.com all you have to do click on the start button and fill out the quick form online. You’re info is sent securely to the network of lenders we work with. From there several lenders will contact you and tell you based on your info how much they will lend to you and at what rate. And what your payment will be. NO SURPRISES! Some lenders might have a better rate for a 5 years loan then other. Other lenders might only lend to people with prefect credit. But when you apply with us you get more than one lender fighting to lend to you. When lenders fight against each other the rate of the loan can drop. Which is a good thing for you. They lend to all forms of credit. Both great credit to all the way to really bad credit.I hope this blog post helps you decide to apply for a car loan with us and please feel free to share this on Facebook with your friends.