I was just wondering if anybody could enlighten me to the catches of this scheme. Having bad credit I went to a dealer to try this out. I was told I qualified for $19,000 but I would have to pay the dealer fees and taxes equaling abut $2300. My credit is horrible and I just don't see how anybody would qualify me for that much money. Were they just trying to get out of the $1000 deal or what?


**I posted this in the Ford Salesman forum under Marketplace but I think it actually belongs here**

 

I would imagine they qualified the loan with the $2300 down assuming you could not come up with it thereby getting them out of the deal. If your credit is that bad and you need the car, see if you can scrape the money together to close the deal.

 

I'll guess the interest rate they're offering you is outrageously high?

 

They told me that the interest cap for my state was 17%. The payments would have been in the $480. I was just shocked that the loan offered to me was for $19,000 when I couldn't get a $5000 at all a month prior.

I kept asking them for proof that I was qualified but they wouldn't or couldn't supply it to me.

 

They probably won't tell you so you won;t go direct to them and get a better rate. If the dealer is charging you 17%, they are probably getting the money for a little less which is fairly common. YOu just will have to decide if buying a car is worht it. Make all your payjents on time and the next time you will be in a better position.

 

Yeah thats very true. I have a friend who is coming out of bankruptcy this year, has kept up car payments for a year and is now in great standing. I think he has a high 600's. That gives me hope.

 

But did he tell you what your rate would be?

 

Nope. I tried to get them to show me the actual deal and they said they didn't have any thing on paper. It was just on a computer in a room I wasn't allowed to go in.

A while back, when I had to turn over the keys for my Stang (repo) I jokingly asked how I could get into an 05. The guy, who did the financing at the dealer, chuckled and told me I would have to put down about half the price of the car.

So I'm just really shocked at somebody even trying to tell me I qualify for $19,000 with just $2300 down for tax, tag and title. I told them I just wanted a cheap car with A/C. So I think they just wanted to give me a big deal they knew I couldn't handle and knew I would turn down.

 

If I were you I'd just go with a previous generation Mustang and work on my credit for a few years. Sucks to have to let a car you want go for a while but in my opinion it's even worse getting outrageously screwed over because they know they have you over a barrel.

 

I wouldn't even mind having a 1999 Mustang. I would take any car with A/C really as long as it ran good. My intentions were never to get an 05 (I was only joking ) or a $19,000 car.

Heck I should be happy I have a car at all right now.