Question. Hopefully Someone Can Help Me Figure This Out?

I have a question about car purchasing. Due to some bad decisions I made when I was younger, my credit is not in the best of shape (working on it). Also, I am a student and only work part time, so this is probably another strike against me. In the next few weeks, I am planning to purchase a vehicle. The vehicle will likely be used. I know that when deciding whether or not to finance, and determining your finance rates, banks/dealers look at your income and your credit. My question is, if both my income and credit score are low, would it help if my down payment was larger? Would that make me more likely to be able to get financed? For instance, if I found a vehicle for 10,000, and made a down payment of 4500 to 5000, would that make it more likely that i'd get financed for the remaining amount? Thanks for the help.Question. Hopefully Someone Can Help Me Figure This Out?
Hi Kara, Consider your school credit union if they have one. If not check out other credit unions local to you, overall they are better for you. Even if they won't finance you ask what the rate would be in a worst case scenario-this gives you a starting place and a negotiating place with others; for example, if a car dealer is telling you 25% and the CU is at 16%, tell the dealer what the CU rate is, they may match it.





As you know, the interest rate will be higher for you right now, but in order to establish good credit there is a value to paying the higher interest.





Also, if you finance with a dealer negotiate the interest with them, it's your money. Ask them what the finance company ';buy rate'; is and allow them 1 to 2% over that. Your leverage is in buying their vehicle and allowing them a profit.





When you find a vehicle collect all the information on it and ask to see what the dealer has spent on it to verify that it has been fully inspected and also to use to determine a negotiating starting place. Go to http://www.kbb.com and book the car at ';dealer trade in value';. Add the amount the dealer spent on the car and that will take you very close to what they own it for-add a reasonable profit (5%) and offer that for the car.





Get the serial number and run a Carfax report to get the vehicle history. Carfax is not always perfect but it is better than not at all.





One thing to consider; if you have $5000.00 down use $3500.00 as a down and save the rest for ';rainy days';, and consider buying a less expensive vehicle, maybe $7500.00.





You will have car expenses ($50.00 present and setting some aside for future expenses), insurance ($50.00), gas ($75.00), and a car payment ($200.00), at least $375.00 a month. I'm sure you know all this so I only offer it as reinforcement; college grads earn 4 times what others do-your degree is valuable, protect it.





Also, no strings attached, go to my website and send an eMail from the contact page and I will send you a copy of my #1 BestSeller ';thebestdealofyourlife'; free, a contribution to your continued success.





Hope that helps, Chuck


http://www.thebestdealofyourlife.com car buying tips, advice and secrets from an expert-30 years/thousands of happy customersQuestion. Hopefully Someone Can Help Me Figure This Out?
If you want some solid advice on purchasing cars go to www.daveramsey.com or buy his book '; The Total Money Makeover';. It's the best common sense advice that you can find.
Yes, but you are better off just paying cash for the vehicle if you have that much to put down. Get an older used car and pay cash.





If you finance it, you will have a higher interest rate. You are better off building your credit back up with a secured credit card before financing thousands of dollars.
Yes. All things being equal a large down payment will seriously help your chances of approval.


If you can put down 40% of a 10,000 car, I bet any dealer in the world can get you financed.
You betcha, look at it this way, you're giving the bank 4500 to 5000 reasons to say ';yes'; so unless you had like a repo last week, you should be ok.
it all depends on the finance company and garage you use to buy ur car from if you have 4500 to 5000 to put as a dowm payment you could buy a good car for that with out getting urself into more det and making ur credit even worse trust me on this ive been there