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

[littlejuanito]

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?

[SinkingFast]

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.

[Minnymouth]

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

[littlejuanito]

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.

[SinkingFast]

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.

[FilingOnMyOwn]

Originally Posted by littlejuanito

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.

[littlejuanito]

Originally Posted by FilingOnMyOwn

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 ...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.

[13inOR]

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

[SinkingFast]

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!!

[FilingOnMyOwn]

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.

[littlejuanito]

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).

[13inOR]

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

[littlejuanito]

Originally Posted by 13inOR

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.

[SinkingFast]

Yeah for you LJ!! I'm so happy for you!!

[FilingOnMyOwn]

Originally Posted by littlejuanito

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.