Just because a car lot does BHPH it doesn't mean they can go back to old lending practices.
By old lending practices I mean putting people in a car with little to no money and an average credit score. The times have changed. a 650 score is looked at as average now because too many lenders have been burned by people who didn't and still won't pay to this day.
And why would you want to go back to old lending practices anyways? Thats the thing that got us all into this mess. Doing the same thing over and over again isn't going to get you out of debt.
$500 down won't cut it either. $500 doesn't even cover your taxes the majority of the time when you purchase a vehicle.
You also have to understand that when a BHPH dealer asks for more money down it accomplishes 2 things. The 2 things benefits both the dealership and the customer. By putting more money down you are saving lots of money throughout your loan. The other thing is it minimizes risk for the BHPH dealership. Its a giant risk to finance someone with bad credit.
Getting more money down will also give you more leverage in getting a better price on the car. If you come in with $1000 down and ask for a lower interest rate or some money off the sales price they probably won't do it. Remember a chunk of your cash is going towards taxes as it is.
But if you come in and say I have $3000-$4000 down can you take an extra $1000 off the sales price or lower the interest rate a few points they will be much more willing to do so.
I can't stress enough that you should educate yourself before stepping onto a car lot.
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