WILL A DEALERSHIP FINANCE ME IF I ACCEPT A HIGH INTEREST RATE?

Question by Steven: Will a dealership finance me if I accept a high interest rate?
I am wanting to buy a car around 15K. I just quit a job of 8 months. I have been making payments of a little over a $ 100 on my car for about a year now. I just got two jobs that pay fairly well. I know if my credit isn’t good enough I would need a co signer but I dont have anyone. I’m just wondering if a dealership will finance me if I take like a 20 percent interest rate.

Best answer:

Answer by Dan B
NEVER NEVER NEVER NEVER NEVER allow a dealership to arrange financing for you. ALWAYS ALWAYS ALWAYS ALWAYS ALWAYS arrange your own financing. If you can’t get your own financing, you can’t afford the car.

The dealer will require a cash down payment first before they will submit paperwork for the loan. Then they will tell you that the loan will be processed and allow you to take the car with you. Notice that I said they will tell you that the loan will be PROCESSED not APPROVED. They already know your loan won’t be approved – that’s why you are at their dealership to get a car financed and not at a name brand car dealership.

NEVER NEVER NEVER NEVER NEVER take possession of the car until you have your own financing in place and approved.

In two weeks, they will call back and say the financing fell through (if you took the car before this time). You will be required to come up with a larger down payment (which you don’t have) and sign for a larger interest rate (which boosts your monthly payments to a level that you cannot afford).

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