Quote:
Originally Posted by EvoFire
^ I think at that point the dealership finance just rejects it. I've never seen or heard from ppl first hand getting a higher rate than advertised at a OEM dealer.
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There are sub-prime, and special financing... at the end of the day...
For the client
- building back credit
- getting a car which most likely get them that job
For the dealer and the bank who is willing to finance
- calculated risk
- insurnace
- more profit
It is VERY expensive, but for a lot of people, it is also the fastest way to get back on their "feet" (credit wise)... most of the time
- they take the very high rate
- make sure they do good payments for a 6 month to a year
- sell the vehicle at a loss
- roll some negative equity into another vehicle with normal OEM rate
Still expensive, but the trick is to buy the cheapest car possible that can be financed, because there is only so much they can depreciate in 6 months to a year... pay the high rate to get your credit back... now buy a cheap new car with the normal OEM rate with some neg equity... yes you will be stuck in that car for 7 years, but by the end of it, you will be back in net positive again in equity + credit score...