Money down

When putting money down on a car it can be an excellent way for you to reduce your monthly payment.  BUT if you have bad credit not only can it be a requirement BUT it can be a gross monster for the dealer.  For example if a dealer has and approval for a loan on a car for you at 120% of trade value they may mark the price of the car up to the 1-2k$ they are asking down and sell the car for the full value of the approval.  I now this I used to make 1500 comission when doing it. 

Credit Issues

When you go to a car dealer and you have less the perfect credit, *they will not admit this* but the term some use is Credit Bandit.  Also when a dealer pre-approves you for a car loan and then you get there they have the car picked out.  Warning! it could be a high date model or something they stand to make alot of money on.  always make sure that you choose the car that will fit the criteria of the auto loan and do not let them pick it for you.  Also ask to see a copy of the approval.  Dealers can mark up the intrest rate 1-2 points for back end profit.

Trade Value

When shopping for a new or used car, always try and negotiate the price for your trade in separate from the price negotiation on your new car.  Dealers can mark the price of a used car up to make it look like you are receiving a great deal when in fact you are "GIVING AWAY" your used car. Dealers use the line if I can get you $xxx for your trade will you do the deal today?  If a final starting price on your new car has not been discussed prior a dealer can use the markup to show more for your trade while basically owning your trade for nothing.

Welcome to my Blog

This blog will offer you tips and watchdog warnings surrounding your upcoming vehicle purchases.  It will provide information to you on negotiations, trade value, credit problem warnings, and more.  A car is the 2nd largest purchase that we make today.  Car shopping can be a frustrating time for some people especially when they are under skilled in the process.