I have heard from several people that if you have a large down payment (such as 40% to 50% of the purchase price), you will be able to get a good interest rate from nearly any dealer/lender. Is this true??
I was looking at getting a 2009 Acura TSX, my credit is bad (540, nothing new though), and I have $20,000 cash. No, I’m not going to buy a used one. I want brand new and total price will be about $35,000 including tax, title, license, accessories, and rims. So that would be a $15,000 loan with $20,000 down.
Would I still be subject to high interest rates, or is it true that lenders will give you the preferred rate for such a low LTV on the car??
Thanks!! I hope some auto finance people respond….
Capital One Auto online helped me.
I used to sell new and used cars for 3 years. In my experience a larger down payment will allow you to get a better interest rate. In addition to that, seek a loan directly from a CREDIT UNION, not a bank. credit unions are non-profit and generally have lower rates. avoid getting loans from dealers if possible. in some states the dealer is allowed to inflate the interest rate from a bank inorder to get profit in the financing. the only situation in which you should finance through the dealer is going directly through the manufacturer, ie…. honda finance in this case. hope that helps.
as a rule they will work with you.if they don.t
go to a other dealer,who will.with a big down
payment you should be OK.it depends on who is financing it.
You’ll definately get some preferred customer treatment due to your large down payment. And yes that could mean that your poor credit will take a back seat. But check out this site for more info:
http://www.find-cheap-used-cars.com/used/buy-used-car.php
If you have a bad credit history still the loan market place is full of lenders who are ever willing to offer you a fresh loan. But you should be meeting some conditions laid down by the lenders. Loans for bad credit people are in fact easier to get then they were ever before, thanks mainly to cut-throat competition amongst the lenders. Lenders are giving loans to the bad credit people who have late payments, payment defaults, arrears, county court judgments or any credit problems. These loans are available for any purpose like home improvements, purchasing a new or used car of your choice, for wedding and holiday tour, debt consolidation or for paying child’s tuition fees.
Every lender in approving loans surely likes to see if the bad credit borrower has sufficient capacity to repay the loan in timely manner. If the borrower earns well, has regular bank balance, has been an employee for some years and has a convincing loan repayment plan in place, then the lenders do not usually hesitate much. So ensure that you have adequate repaying capacity before applying for a loan. Also, you should first check your credit report for any errors. If your credit score is too low then you would be charged a very high rate of interest. So it is advisable to first pay off some easy debts to improved credit score and then you should apply for loan at better rates.
http://badcreditloans.50webs.org/badcreditloans.html