by: AFI
"My first post"
Hello, I have been a Finance Manager in the car business for the last thirteen years. Currently, I am employed at a New Car High line dealership where I am the Finance Director. I am in charge of a fantastic group of guys and it is truly an excellent Finance Department.
As a director, an aspect of my job is to decide which Finance Company or Bank to assign the contract recently signed by a customer. All dealerships that do their own financing are considered lenders and can keep the contract in house collecting the principal and interest payments.
The common practice is to "assign" the contract to a a lender of choice and receive payment for the contract by that lender, discounting their receivables. All new vehicle franchised dealerships participate in this this practice.
Part of my job is also to use the relationship I have with my lenders to persuade them to give approvals for customers with less than perfect credit (sometimes I see some absolutely awful credit). It is tough to get an approval sometimes, and since the dealership wants to sell a car, persuade the customer to sign up at a very high payment.
If you are in the process of applying for an Auto Loan:
* Understand that the approval process could take a day or two.
Most dealerships will hold your car or even let you keep driving it on a Dealer Licence plate during this process.
Give the salesperson copies of these needed documents:
* You will need proof of income. Acceptable is a recent paycheck stub showing your year to date gross income.
* A copy of a utility bill (shows proof of residence).
* A copy of home or cell phone bill.
* At least three references with addresses and phone numbers.
If possible, bring these to the dealership when you go to shop this way you'll have them if you find a good car and wish to purchase it today.
* Be realistic on what you can afford as a monthly payment (a $30,000 car will run in the $ 500's per month).
* Get pre-approved before coming in. Both you and your salesperson want you to have the car now and my job would be easier if you had a pre-approval number from a lending source.
The best way is to get one of the "blank check" offers that are out there. If I can't get an approval for you or if the interest rate I got for you is higher than the interest rate obtained through your pre-approval, you could still take delivery of your car the same day. Several years ago when my credit was recovering from my divorce, I bought a car and used the Capital One blank check I was pre-approved for. It really felt like I was a cash buyer holding a check to pay for the car, I knew the interest rate, and the payment depended on the cost of the car. It was a good feeling.
The best "blank check" program out there is through Capital One Auto Finance.There are a lot of different programs out there, and I have seen each one many times. The customers who come in with RoadLoans blank checks have seemed to have gotten lower interest rates and an easier time getting approved. When I refer a customer, the check is overnighted and they can get their car tomorrow. (No I don't work for Capital One Auto Finance
, but I recommend you use the link, fill out an application and see what happens).
Please leave some comments about your Financing Experience. I will answer any questions the best I can.
You can send an email to me at: autofinanceinsider@yahoo.comThe most enlightening website on the internet is: http://www.autofinanceinsider.com/
Explore the Laws and Regs blog for the Automotive Industry at: http://www.autofinanceinsider.blogspot.com/
Please bookmark this blog and come back often to learn how you can gen an auto loan with a low interest rate even if you have less than perfect credit.
Thank you for your time,
AFI
