how are car dealers able to give car loans to people with poor credit?

most don't seem to care much about credit and will approve anyone in minutes

13 Answers

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  • 4 weeks ago

    well they do give it to people with bad credit but they have a big monthly payments then someone having a great credit my monthly payments is really low

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  • 1 month ago

    They charge higher interest rates and super long terms 84 months to 104 months and brand it so it seems you're pay only 350 bucks a month. Thats how people end up with huge debts and end up paying 40000 for a 23000 car

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  • 1 month ago

     Just don't expect much from the car.

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  • Dan B
    Lv 7
    1 month ago

    Car dealerships don't finance cars. They have a financing arm that does it for them. Once you are approved, the dealership doesn't care one bean whether you can afford teh payments. That's the financing arm's problem.

    Buy Here, Pay Here dealerships don't care if you can afford the payments either. They'll just repo the car, re-sell it and still demand you pay for the car. The cycle repeats itself.

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  • 1 month ago

    You must be talking about scumbag "buy-here-pay-here" used car dealers who sell crappy old cars at super-high interest rates. If you are a warm body with a halfway decent job, you can get approved. Just don't expect much from the car. 

    • Anon
      Lv 6
      1 month agoReport

      Not Chrysler-Jeep and a New car. I have low income, poor C?R yet was approved. 

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  • Scott
    Lv 6
    1 month ago

    They charge an exorbitant interest rate for second-rate used cars.

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  • 1 month ago

    They do their own lending. The down payments required are usually about what they actually spent on the car. And they repo in a minute if you are late paying.

    • Anon
      Lv 6
      1 month agoReport

      Right for Once.

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  • 1 month ago

    Actually, most large dealerships simply arrange the loans with third-party lenders.  

    Some of the small used car dealers do in-house lending, but many of the small dealers also simply act as a broker with lending agencies.

    Some lenders specialize in at-risk loans.  Someone with poor credit may be able to get a loan, but it will be at a much higher interest rate and/or require a higher down payment.

    Also, an auto loan is a "secured loan".  This means the car is collateral and if you fail to make the payments, the lender has the right to repossess the car.  That is why you won't receive the title to the car until after the loan is paid in full.

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  • Anonymous
    1 month ago

    Massively jacked up prices, high rates, GPS and quick repos.

    • Snezzy
      Lv 7
      1 month agoReport

      Yes, it's that repo. If you're late on payments don't leave anything valuable in the car. It will be GONE. 

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  • Anonymous
    1 month ago

    18 percent interest.

    • ...Show all comments
    • Anon
      Lv 6
      1 month agoReport

      Chrysler-Jeep , 28% on new car. Eagle Bank financing; 28% on a 12 year old motorcycle.

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