Are bad credit auto loans such as carsdirect a scam (like payday loans) or are they legit?
Sunday, May 9th, 2010 at
18:27
Auto Borrowing Associates
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US $7,100.00
Tagged with: Auto • carsdirect • Credit • legit • like • Loans • Payday • scam • such • They
Miss one payment. Guess what happens the next morning? Your car is gone.
They are legit, I’ve had them. All it is is the car lot is financing the car payments, and not an actual lender. However, like mentioned above, if you miss a payment, a car lot will NOT be lenient and let you pay late like a regular finance company will. They’ll just come pick your car up.
They also tend to be more expensive, since the car lot is taking on the entire amount of risk, especially since there’s no credit check – they usually want to see bank account statements that don’t have any bounced checks, proof of employment with a good amount of pay, and they might do some quick analysis of what bills you pay monthly vs your income, to make sure you aren’t overextending yourself.
My advice is to go to a reputable lot that doesn’t offer the bad credit loans, and see if you can get approved. If you can, then go with them, definitely – or you could also check your bank/credit union to see if they’ll finance you. If no lenders will finance you, then go to that bad credit auto loan place, and see what kind of cars they have. Don’t buy a car just because you can get financed for it, and please remember, the first car they want to sell you is the one they want to get rid of most – so ask yourself if they want to get rid of it the most because it’s a lemon, or because they already have 20 of the same car on the lot and just need to get some variety on the lot? Almost 100% of the time, it’s because it’s a lemon…. lol!
you have to own the car 100% – no existing loans on it, which means it would be at least a 5 yr old car and they would probably only give you a loan for 1/3 of the wholesale Blue Book value and an int rate of 15%+ for the risk involved