Iv come to realize alot of people have no clue on what it takes to get a car financed. Id like to let you in and know and understand the truth. No b.s Uncle A has your back. Reach out , comment below if you have any questions or would like me to do any other videos related to the car business. Lavicemotors.com
Hey guys hi san pedro and the vice motors austin here i wanted to bring you a video about the truth about financing a car with the challenged credit i get all the time people asking me how much done i don’t know you i don’t know your background or your situation and i’m starting to realize a lot of people have no clue what’s involved got you and i’m gonna educate
You to tell you the things that probably no other dealer likes to talk about all the tricks and the traits and the secrets behind it so if you ever approach yourself to a dealership and you see in the window that mercedes benz and it says $4.99 a month or that ss camaro and 399 a month wow i can afford that but you know darn well it’s a thirty five thousand forty
Thousand dollar car this is how they do it 399 a month with approved credit on top of the correct amount down see it’s all the numbers game it’s all a math game you buy a car sixty months just figure this math the average thousand dollars financed 20 bucks now give or take worse credit might be a little worse and then if you have like an awesome offer at 0%
Interest or 1.9 percent inches it’ll be a little less but here’s just a good general rule of thumb to keep your math simple so you buy $10,000 car expect a $200 payment buy a $20,000 car expect a $400 game you buy a $30,000 car $600 just keep that in mind that’s average now of course if you buy a $30,000 car and you put $5,000 down approximately a $500 payment now
If you go 72 months an extra year they’ll lower that payment of course probably like 70 80 bucks and it all depends on your credit a lot of people come around hey how much down i don’t know i need to know your background i need to know your credit history i need to know your income what you can qualify so here’s another thing say you have a and you want which allows
You to get financed pretty much for anything right you’d think that but if you make only $2,000 a month they’re not gonna qualify you on a $40,000 bmw or mercedes you don’t qualify because the bank expects you to have a certain amount of income to live to rent to eat to pay other bills so they only allow us for a percentage for you to have it as a car p so what have
We learned what do i need for down payment just to be silly or funny about it i could put a ferrari on my lot and put 399 a month how the hell is that possible that ferraris 200 grand yeah you put down 180 grand i can get you a 399 car payment on do you understand there’s a little bit of tricks and also we all as dealerships do this think every single one of them
Have the same banks with the same motto obviously to sell the car so you a lot of times you’ll come across basically creative advertising whether it’s fifteen hundred dollars down on this thirty thousand dollar car yeah if you got good credit you can get that thirty thousand dollar car advertisement said you know only fifteen hundred on how come i can’t get that car
Because you got a five forty credit score and you know you don’t pay a lot of your bills then you’re a higher risk you’ll need 20% 25% 30% i’ve seen some people need a good chunk also let me explain this these days it’s not just your credit it’s also the asset meaning the car so let’s just say i had a $20,000 toyota car or truck next to a twenty thousand dollar bmw
And you have challenged credit guess which one’s easier to finance ding-ding-ding the bmw why is that art count just kidding the the tacoma the toyota is gonna be by far better because it’s more reliable holds its value the bank thinks it’s an easier asset to fund and a higher chance of it less less likely for it to break down a lot of times some people’s mentality
Is if they buy a car they finance the car and they figure six months eight months all of a sudden the alternator breaks or the suspension brakes if something goes wrong with that expensive european car they have in their mindset oh i bought this car it’s not running why do i have to pay for it no that’s you know it’s that’s obviously ignorant but that’s how it
Goes and they have a statistic that shows the average person that i pay this doesn’t that so there’s there’s a an algorithm that they actually have figured out a stereotype per person per their background per their job for their credit how likely they are to pay a car so they’d rather push you towards the deep the toyota versus the bmw mercedes they’d rather push
Towards the honda or the trucks that are most likely not going to break down onion also another piece of information i’ve seen this and i think it’s fascinating truck guys even if you have poor credit but you’re in the industry of construction construction contractors anything where they know you need your truck for work even if you have a piss poor credit score
No disrespect i’ve seen them fun to that person and finance you a lot easier than if it was even you know a camry the reason being is they know that person will even if he’s got poor credit he’ll negate maybe every other bill except for that truck because the truck gets in money get some finance so trucks have actually almost sometimes their own special financing
Amongst that what else is there oh for buy here pay here do you ever come across a place all by here pay here carry their own fun so this is the trick most of the time places won’t really fund you on a higher end car so they see a car five thousand six thousand dollars get this when you’re buying here pay hearing the bank there is no bank the dealership is the bank
So they set their own terms they may all be very similar a lot of them are different i run my own a certain way but what happens is they’re usually charging you an astronomical amount of interests sorry i couldn’t speak so you buy a car for five thousand if you carry the loan for three years four years you might end up paying fifteen thousand dollars for that car
I don’t see the work but hey obviously you credits not good and nobody else will finance you so keep that in mind you gotta pay attention to that when i do buy here pay here for my cars i only do cheaper cars 3000 4000 5000 dollar cars and i charge zero percent interest the only dealer that does it in the planning if my incentive is i want half down of the car
And i need you to pay it off very soon i’m not gonna carry this note for a year i’ll carry it up to six months maybe eight months ten months or something depending on the situation but then there’ll be a little bit of a surcharge for that a little fee for me for me waiting for the money but i’ll charge you zero percentages most place it starts with 30 percent but
Somehow it adds up to basically 100 percent anyway i just wanted to do a quick video for anybody that had any questions like comment please share this and do me a favor if you have any questions and if you like videos like this comment tell me what else you’d like to know about the car business uncle is here i’m gonna tell you the ins and outs i’m not here to bs
You i’m a san pedro and i live right here local i go out of my way to help my people and i’m the only dealer doing these things so reach out comment tell me anything else you’d like to know and if you had any particular questions if asked about the financing stuff please reach out glad to help love you guys have a nice one bye
Transcribed from video
How to finance a car with poor credit, The TRUTH on how dealers finance No B.S. By L.A. Vice Motors
