!!!!Applying for car loan, dealer wants deposit..I have a Question!!!!!

I went to this mom an pop car dealer since everywhere I went, I got turned down. This small dealership said they would be able to finance me with a 21% APR on a 6k auto. I was told to bring copies of pay stubs, utility bills, etc and also to bring down the $1000 I'm gonna put down so they could process the application. This is my question. Should I give them the $1000 even if I don't know if I'm getting approved? The dealer said if I wasn't approved, I would get my money back, but I'm also waiting on another loan to go through and I don't wanna hassle with having to ask for my money back. What is the purpose of them asking for the down payment up front, without even telling you if you've been approved or not?
What if they tell me it's the only way to run the application?

The down payment up front could look like good faith money to the Mom and Pop dealer. But,..........

Most of those dealers buy cars at auction that bigger dealers take in on trade and won't sell on their lot for one reason or another. So if the car is there, I'd be a bit leary.

Some of those small Mom and Pop dealers are reputable, tho. I went to school a pair of kids who's mom and dad owned one. They only sold good, solid, mechanically sound vehicles. They had a very good reputation. But, they also charged more than most small lots. They weren't a "Buy Here Pay Here" lot either. They worked with local banks for their financing.

This is a kinda "Go with your gut" situation. Evidently you aren't all together comfortable with it or you wouldn't be posting here for other people's input. Maybe that right there should tell you something.

Unless you know these people personally,......... Know they have a very good rep for selling quality vehicles, then I'd say pass. The right opportunity may be just around the next corner.

Buying a used vehicle right now its best to be VERY CAREFUL and have it CHECKED OUT throughly.

Many of the vehicles from the South (Katrina damaged) are now being sold in the North, East and West.......

Many have sit in water for weeks with theirs engines full of water, etc...........

Whatever you do, be sure you have a Used and New auto checked over carefully. Have its vin# run to see where it came from.....

You won't be able to SEE the damage yourself, but it will be there......... and a good mechanic will see it too.....

A thought,

Minny

Thanks guys. I'd probably just have the dealer run my app. Once he tells me I'm approved, shows me the numbers and everything in writting, I will then proceed to negotiate right there and then. Besides, I'm waiting on this other car which is the one I really want. If they still insist on getting the money, i will walk away.

You can sign up for Car Fax and run VIN numbers yourself. The fee is nominal. Like $25 for 3 months or something. We used it when we were car shopping for son's car. You'd be surprised at the number of vehicles out there with salvage titles and such.

Minnie makes a good point. Check out the car you're seriously considering to know where it came from. If it's a salvage title or not. etc. Every time a vehicle get's titled or changes hands, it get's recorded in the VIN history. It's another useful piece of info in the buying process.

I went to this mom an pop car dealer since everywhere I went, I got turned down. This small dealership said they would be able to finance me with a 21% APR on a 6k auto. I was told to bring copies of pay stubs, utility bills, etc and also to bring down the $1000 I'm gonna put down so they could process the application. This is my question. Should I give them the $1000 even if I don't know if I'm getting approved? The dealer said if I wasn't approved, I would get my money back, but I'm also waiting on another loan to go through and I don't wanna hassle with having to ask for my money back. What is the purpose of them asking for the down payment up front, without even telling you if you've been approved or not?
What if they tell me it's the only way to run the application?

Dude, (or dude-ette), this is like your 3rd or 4th thread you've started on this topic. And I know its your business, but to me it almost seems that you are dying to get ripped off. Come on now, 21% interest! Thats ridiculous. On a car that I'm sure is already overpriced. And they want a down payment just to approve you. I know you're impatient, and you want it to all happen overnite, but it just isn't going to help you going to these dealers. You don't want to end up back where you started. Just be patient, save your money, and buy when the circumstances are right, not when you feel desperate. Because once you get ripped off, then you will really be desperate. And nothing you can about it then.

Dude, (or dude-ette), this is like your 3rd or 4th thread you've started on this topic. And I know its your business, but to me it almost seems that you are dying to get ripped off. Come on now, 21% interest! Thats ridiculous. On a car that I'm sure is already overpriced. And they want a down payment just to approve you. I know you're impatient, and you want it to all happen overnite, but it just isn't going to help you going to these dealers. You don't want to end up back where you started. Just be patient, save your money, and buy when the circumstances are right, not when you feel desperate. Because once you get ripped off, then you will really be desperate. And nothing you can about it then.

You're right!! I just realized it's not the best time for me to buy a car. A 21% interest is quite high on an already overpriced car. Not only that, I just couldn't get approved no matter how hard I bent. First, I wouldn't get approved because of my credit.... If I was able to get approved past my credit history, my down payment was never enough.... And now here this, I was able to get approved at a couple of places, credit was not a problem, down payment was not a problem but........when it came time to verify employment....they denied me because I was a temp at a Job Agency(Appleone) Aaarrrrggggghhh!!!!. If it was not one thing, it was the other....I just couldn't get a break...I am soooo pissed and frustrated:blink: ...but I guess it's a sign...I guess it was not the right time or all those factors would not have been against me. I'll save up some more money and try again in about 6 months.

Good for you, Juanito. You will be glad you waited.

When you get a whole bunch of things not allowing you to go forward it's usually a good sign you shouldn't do something.

Smart Man! or Dudette as the case may be!!

Just take your 1000 bucks and buy a beater. If you buy an economy car for this summer you will be hella glad you did, when gas approaches $4 a gallon or more. Then you will save all the money that you would've wasted, and get the car you really want.

Update: Well I ended up getting approved by Toyota financing. It took a while but I got approved within a couple of hours. Actually, I got approved pretty quick, the only thing that was taken long was agreeing on a down payment. I got approved on a 17.99% APR which I know it's high, but coming out of BK and only a $1500 down payment, I believe it's pretty good. Other banks wouldn't even touch me at any rate and the ones that finally did, wanted 21%.
I have no early pay-off penalties (I only pay the actual balance of the car, not the future interests), so I'm gonna refi in 6 months from now at a lower interest and a shorter term (I hope I get approved).

That is awesome, I would think they would be difficult to work with. 17.99
is not bad at all for this situation.

That is awesome, I would think they would be difficult to work with. 17.99
is not bad at all for this situation.
It wasn't a bad deal. I bought a great car (2001 Acura TL w/ Navigation certified pre-owned). 17.99% is about as good as I was gonna get in my situation (beggers can't be choosers) and I got a car I love from a reputable dealer and it's in great condition. Payments could be a little lower but I'll manage for few months.
BTW, two mom and pop dealers ended up approving me with a higher APR but the approval came too late.

:yahoo: :clapping: :yahoo: Yeah for you LJ!! I'm so happy for you!! :yahoo: :clapping: :yahoo:

It wasn't a bad deal. I bought a great car (2001 Acura TL w/ Navigation certified pre-owned). 17.99% is about as good as I was gonna get in my situation (beggers can't be choosers) and I got a car I love from a reputable dealer and it's in great condition. Payments could be a little lower but I'll manage for few months.
BTW, two mom and pop dealers ended up approving me with a higher APR but the approval came too late.

Well I think this was a much better decision than to finance an old 300ZX. The Acura should be very reliable for quite awhile, at least until you are able to pay it off.

:yahoo: :clapping: :yahoo: Yeah for you LJ!! I'm so happy for you!! :yahoo: :clapping: :yahoo:
Thank you. I am too very happy.


Well I think this was a much better decision than to finance an old 300ZX. The Acura should be very reliable for quite awhile, at least until you are able to pay it off.

It's true, if I was to get that 300Zx, I would have had to buy it cash. My plan with the Acura is to pay it off as soon as possible.

Congrads,
Sounds like you made a better deal, better rate, for a better vehicle..........PLUS your payments will probably be reported to the credit bureau to help build your credit score back up again..........

ENJOY :D

Congrads,
Sounds like you made a better deal, better rate, for a better vehicle..........PLUS your payments will probably be reported to the credit bureau to help build your credit score back up again..........

ENJOY :D
Thanks. Im pretty sure Toyoya Finance Corp will report accurately every month. My plan now id to build a solid payment history and refi as soon as possible.

People be very careful about buying used vehicles. I am not sure about anywhere else in the country but since all of the hurricanes here in the south there are a ton of water damaged vehicles on lots. They are both on mom and pop lots and surprisingly higher up dealerships. A friend of mine was looking to buy a used vehicle and wanted me to come along to look for any problems he may of mised. I was looking at some newer 2004 2005 vehicles that looked fine on the outside and ran great but if you look close you could see water damage and the dealership said nothing about them and the prices had not been reduced at all for water damage. Whenever you look at a used vehicle pay attention to the wires under the hood and under the vehicle and look for any corrosion. Look under the fluid caps for discolored fluid and here is the best indication for water damage, look in the frame rails for things such as drift wood or other debris. My friend was looking at a 2004 Ford Explorer and I actually pulled out a piece of drift wood from the frame rail and the sales man didnt know what to say other than he would tell this to his boss. That is when we left.

Mike, I agree, you have to crawl under the Vehicle. In general I would say it safer to go with ther dealer, they generally don't want problems created by damage. A late model vehicle on a Buy here/Pay here lot is to me a given that it has problems.

Like he said, a dead giveaway is condensation under the fluid caps. Engine washing can do that but not likely.

That's just scary.

UPDATE

A week after I had originally purchased the car, the dealer called me saying they werent able to keep promise on the 17.99 APR I had originally been given. I was instead raised to 23.99%...I was about to turn in the keys an nulled the contract, when they re-did everything, lowered the price of the vehicle and shortened the lenght of the loan. Although I ended up with a higher APR, my payments stayed the same cause the value of the vehicle was lowered in order to compensate me for the original non-approval. Also, last month I refinanced with Capital 1 and was approved for a 17.99%, so my payments dropped a little more. I still think my payments are pretty high, considering the milage of the vehicle and everyday expenses. I'm planning on selling and maybe making a bit profit since I'm about even on equity. The car is worth as much as I owe. Any other suggestions? should I trade it in for a much cheaper car so I can get lower monthly payments?

Did you take this vehicle as a "Spot Delivery?" This is one of the biggest scams that a dealership can pull.........AND IT's NOT LEGAL. I can't remember if I posted an article/case law with regards to this.......here's a link of something I just searched.......

http://www.lemonlaw.com/spotdelivery.html

.....and another......

http://www.carlawyer.com/auto_scams.html (scam #3)

You can also go to http://www.edmunds.com (Tips and Advice section) and read up on what scams dealerships can pull on you.

Of course since you have done some things to get the rate you wanted and the payment you wanted, keep this info in the back of your mind for the next time you wish to purchase a vehicle.

Thanks for the tip...I guess they pulled that scam on me, but in the end the final price on the car ended up being less..