The first thing you should know is that the
dealer is going to use your
credit report as a weapon against you, even if you have great credit and a
great
credit score.
The sales manager is going to look for your score first, hoping that it is at least 700 or above.
Then he is going to look for any derogatory marks on it, like collection accounts, whether they
are paid or unpaid. Then he'll look at the balances on your
credit cards and see
how much you have available in your revolving credit (
credit cards). Then he'll
look for any 30 day, 60 day or 90 day late payments. All of the derogatory marks will be circled
with a red pen, like he is grading a school assignment.
Even if your score is barely 700, he's going to say your don't qualify for tier one financing.
That is a lie, you will get approved for tier one, but he is going to write the loan using a
tier two interest rate and make money on the financing reserve.
The
dealer is going to bring up any derogatory things on your report if you don't
accept the interest rate s/he quotes you. "Well, you could have gotten the 4.25% but because
of that collection account, I can't give it to you." This can all be avoided if you have your
financing in place before you go to the
dealer.
Visit the following sites to investigate financing on your own:
