Will the Car Dealership Finance Me?

[LadyMango]

Is it really possible that the car dealership will finance me? My boyfriend's best friend owns the dealership (inherited it @ age 22). I'm wanting a new small car @ 12k (Hyundai), and I said I would put 1k down. It's one of those "guaranteed approval" places.Here's the problem, my credit isn't that great-but I just started a great job. So I don't have good credit or have much of a stable employment history. I'm also a full time student.Do dealerships/banks really finance ppl like me? I don't want to get overly excited and take my paycheck to the dealership, just to get let down.

[Madmas]

Most of the "guaranteed approval" dealerships approve you with outrageous interest rates, and a ton of money down. Those places that say crazy things such as "I'll get you approved or ill give you a car" will NEVER actually GIVE you a car becuase no matter what your credit is, someone out there will give you a loan with almost illegal interest rates, and 90% down payment. So, yes it is possible for you to get financed, however, you may need more than 1k down. I hope that helps you.

[maxman71]

As long as your dealership is licensed to ORIGINATE contracts, they can always resort to secondary finance.Basically, the dealership would collect your down payment and contract you for the remaining balance. They would then SELL that contract, and therefore its' future potential payments, to another company at a discount.Course, by selling at a discount, the dealer usually needs to recoup the cost of this discount via down payment which is why buyers so often complain about 'raising the price' or 'haggling'.Usually you'll have a high APR and a higher 'selling price' to compensate for the discount absorbed by the dealer, but such sacrifices are often accompanied by a shot term. Bottom line is finding a dealer who got the car cheap...whether it be disciplined purchasing at auction or a previous repo. Ask to see the auction sheet if you think you're being hosed....and $1500 gross profit is about the max reasonable markup.