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Edited on Fri May-25-07 11:02 AM by datasuspect
to multiple subprime lenders.
usually very high interest.
requirements OFTEN entail:
at least 1500 - 2000 minimum verifiable monthly income
some kind of bank account
some copies of utility bills
the car must have less than 30k miles and less than 2 or 3 years old
you WILL have exhorbitant interest rates: between 16% - 29% not uncommon.
typical loan amount is around 15,000
some of these can work out in your favor.
you can get a newer model used car and finance for 60 months in the initial contract, pay about 330/month.
in some cases, they will send you a blank check for 15,000, which helps you when negotiating a deal with a car dealer. you go in with your own financing and can bypass the dealers F&I department.
here's the best part, pay the note on time for about 13 - 20 months and refi with a better company for better terms, you can often shorten the term of the loan and come out with a lower payment and interest.
the upfront cost of high interest payments with the first company is a like a penalty for having bad credit, but timely payments for a year or a year and a half will drastically improve your FICO score and put you in a better bargaining position.
if you have exemplary credit, simply go to the bank and get a loan for 5,000.
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