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Just as events have overwhelmed Ford, Chrysle,r and General Motors as far as their climb out of debt is concerned, these same conditions have also affected buyers’ ability to purchase a car.
We're talking about the current economic situation which may be causing some to pay bills late or even experience the foreclosure of their home.
All of these affects the FICO credit score of the potential buyer of a car, influencing the kind of deal you can make with such lenders as Ford (Ford Credit), General Motors (GMAC), and Chrysler (Chrysler Financial). Worse, due to the credit situation, more and more banks have tightened things up and are raising their qualifications for a loan.
Unless your credit is outstanding, you can forget about a 0 percent or a low interest loan, experts say. Self-employed and first time buyers are trusted less than in previous times. Interest rates for such buyers can be significantly higher than for a person with outstanding credit, forcing the buyer into a less expensive vehicle.
If you find yourself in this position, find a national or local bank that specializes in bad credit situations like bankruptcy or foreclosure. This way you can get pre-qualified for a loan. Be warned that such loan programs can include a very high interest rate from 14 to 23 percent. Don't be surprised if you may have to make a substantial down payment and show proof of steady employment.
Our take? The bottom line is this: Do some research about the credit market and your own credit standing before you actually visit a dealer. This way you won’t suffer through shell shock when you are in final talks to close a deal.
via The Mustang News
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