How to get financed for a car

"How to...": Get Financed For A Car
In this next series we're going to talk a bit about how to get financed for a car.

Step 1: Try to get preapproved
"The first thing you want to do is make sure you can get preapproved before you get to the dealership. That way you'll, more than likely, get a better rate than the dealer can offer you."
Step 2: Increase your down payment
"Now, if you find yourself at the dealership and you've not gotten preapproved and you failed to get approved (at least initially with the dealer), the next thing you can do is try to increase the down payment. As far as the down payment, actually, 15 percent is what most banks look for. If that doesn't work, try 20 percent and up."
Step 3: Find a co-signer
"Next step is to find a co-signer. You can let your co-signer know that they're not obligated to remain on the loan for the entire five years. If you're able to refinance within a year, you can remove them from the loan at that point. If you find a co-signer that has strong credit, that can actually have more impact than a large down payment."
Step 4: "Buy here, pay here" dealerships
"Now, let's say all of that fails. The next thing you might have to consider is going to a dealership that offers in-house financing, also known as 'Buy Here, Pay Here'. Make sure that the dealership that's offering you that financing in-house is reporting to the major credit bureaus. If they're not, then it doesn't actually improve your credit as you're paying for this car. *Note on Leasing: It's not always a good option*: there's a little misconception out there that if you can't get it financed then you should move on to leasing. That's not the case. The credit requirements to lease a car are generally higher than financing. So, move on to these other steps. Those steps, once again: Increase your down payment to over 20 percent or more, find a co-signer, and, if it's a used vehicle, find a newer used vehicle."

Category:

Howto & Style

Tags:

• how
• to
• finance
• car
• financing
• leasing
• buying
• misconceptions

[saiyansnake]

Dang man, I wish you made this video 4 years ago. I bought 2 cars over the course of 4 years from a buy here-pay here dealer but they never reported it to the credit bureaus...... I always paid on time and I never missed a payment but yet I still have no credit :(

[rizzo2343]

Thanks man that was very helpfull!!