Low Credit Score & “Special” Financing?
Wednesday, February 1st, 2012 at
2:47 pm
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Tagged with: credit • Financing • score • Special
Filed under: Raise My Credit Score
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The “special financing” that the deal mentioned is a high-interest loan, made necessary by your poor credit history. Your income and debt load will determine how much you can borrow. You should talk to a bank, credit union, or online loan company and not take your advice from a dealer, especially a “buy here- pay here” dealer.
I was told the same thing today by two dealerships
I have a bankruptcy just discharged in October 07. They told me I can get a used car, not new up to $ 11,000 with 13-15% interest. My score is 576. They also told me that I had to buy 2003 or higher and spend more with low miles or the banks wouldn’t finance. I think it’s cuz they know that people like us have no money and are afraid to buy anything over $ 5,000 so they dont’ want to bother financing us. I hear you, I am going thru the exact same thing right now. Sounds like a scam!
The reason is simple, high risk loans, such as people with bad credit are more likely than others to default if their car breaks down. A newer car with less miles is less likely to break down, thereby reducing the risk of you defaulting.