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"Subject To Financing": why the dealer called you 2 weeks later to re-sign your auto loan
New car financing at the dealer can be a headache. The "Subject to Financing" clause appears on paperwork of all new car loans. It means the deal is not done, yet you think you are signing a contract. Then 2 weeks later the car dealer calls saying "your new car loan fell through." They knew what APR you qualified for when you bought the car, a common auto loan scam, usually pulled on people with bad credit. You should not buy a new car first then worry about new car financing. Sometimes dealers call and say they found you a lower APR, come on back down and re-sign the paperwork! Oh, Really? Have them fax you over all the new figures and APR in writing, and make sure they did not increase the number of months, or payment, or anything. Otherwise do not re-sign any contracts. This is why we are big proponents of online new car loans. Don't get stuck with a bad credit auto loan if it's not necessary. This would have been avoided if you used online auto financing. New car finance Rule: Don't trade in a car that you still owe money on
I get complaints from people who traded in a car they owed money on for new car financing and 2 months later were shocked to hear the new car dealer did not pay off their car loan in 10 days as promised. With this scam dealers pay you less for your trade. When the bank calls, YOU are responsible because the old car loan is still in your name, until the dealer pays it off. If you trade a used car in for new car, make them verify it in writing that they'll pay off your car loan in 10 days, or no deal. Online Auto Loans: Getting the lowest Auto Financing APR
According to the Consumer Federation of America, car buyers are often overcharged by 3% on their loans at the dealership, which can add $1000 to the life of their loan. Your best sources for new car financing ONLY IF YOUR CREDIT SCORE IS HIGHER THAN 680 are new car loan sites such as Capital One Auto Finance (who I used in 2004 and it was smooth as silk. Read How I Saved $5500 Buying my new 2004 Lexus GX470 SUV for more info) and HSBC Auto Finance. With the lowest online auto loan rates, they usually beat dealers, no application fees, or down payments. Your new car loan is approved in minutes. These are not bad credit auto loans. Get your online auto financing quotes, compare to dealer auto financing, use whoever has the best car loan interest rate. Online auto loan rates are the standard for dealers to beat. Use online car loan payment calculators and choose your best auto financing. What Should My Credit Score Be For Approval On A New Car Loan? Who should I apply to? If your credit score is > 680 (prime borrower), you'll likely get the lowest APR car loans at discount online lenders Capital One Auto Finance and HSBC Auto Finance!
If your credit score is < 680, you are "sub prime". You'll pay higher APR on your auto loan, try applying to AutoCreditFinders or CarsDirect Car Loans
Below 550, you can forget about a car loan, or even a bad credit auto loan through any lender or car dealer. No one will touch you, blood from a stone...
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