I keep getting car dealership solitictations

[so-beyond-broke]

Hello

It seems that every so many weeks I keep getting in the mail solitictations from car dealerships saying that I am pre-approved for a new car loan or I can turn in my 1998 Nissan Altima and drive home a new one. Nissan in particular sends me fliers stating that I can upgrade my car and they will pay the balance of what I currently owe. First of all, how are these companies "pre-approving" me? If they have access to my CR then they know that I have a lot of negative accts - almost the same # as positive ones. Is this a scam to get you to come into the dealership only to be turned down? In the fine print of these notices it mentions that I met certain criteria to be eligible for the offer, but what criteria? Don't they know that my credit is bad?

I bought my used 1998 Nissan in 2001 from a major used car dealership, so how does Nissan know I have one of their cars, and why would they want to give me a 2005/2006 Nissan of my choice in exchange for my 1998 for which I still owe about $3200? I plan to file bk this Spring if I were interested in swapping my car for a newer one would it be in my best interest to do so before or after the bk? The dealerships have also offered to pay what I owe? I figure that post-bk would have higher rates.My car seats five,but its too crowded for my teens now - I could use an SUV or mini-van. The one thing that my SO said which was right nearly 5 yrs ago was that the kids would grow up and the car would get too small before making all the payments. I didn't get a van back them because of cost, but also I was just learning to drive and got my license and was afraid to drive a larger vehicle.

Then again I am tired of making car payments and after I pay it all off by X-mas I want a break. Maybe I might save the $$ from the car payments and use it later along with my trade-in to get a larger vehicle. The overcrowding only becomes an issue during the summer when we got out as a family. It might not be such a good idea to jump into a big purchase after bk because I would probably get terrible rates.

What do you guys think?

sbb

[StaciMM]

I get car offers, between DH & I very few days go by that there ISN'T one in the mail. I don't read them-we don't need/want a 2nd car or payment. I can just say to be careful-there isn't always truth in advertising. They use words carefully. You're approved for a loan 'up to $X' or with an interest rate 'as low as Y%'.

My biggest gripe... The one that came today was in an envelope that was made to look like it was official, government business. Orange/brown envelope with 'express handling' and a barcode on it, and 'dated material' and something about US Savings Bonds. It does have in small print 'this mail piece is not affiliated with the US Governement' but I imagine with the way it looks, people open it thinking it is something important. I did! On the inside, "So-and-So Chevrolet has learned you have received discharge papers... You have been approved for participation in our new bankruptcy discharge vehicle purchase procedure... You may be pre-selected for a possible auto loan..."

[StaciMM]

PS-they don't have access to your credit info. They do have access to public records, and they're fishing for customers. Good sales people can get anyone to make an emotional decision and agree to a purchase agreement even at bad terms.

If you read the fine print, you'll see nothing is guaranteed and there are stipulations.

[SinkingFast]

We had a dealership "back home" that I went to twice. First time to see how they dealt. Second time to give them the benefit of the doubt about the first visit.

They were gonna finance back the remainder of the balance on my current car loan against the vehicle they were gonna sell me. They would jack the sticker on theirs to be the price of their car, plus my balance, plus a little for down payment. A down payment that didn't even exist. The thievery was unreal.

The guy owns all kinds of dealerships. Chevy, Ford, Toyota, you name it. They have major dealer finance and they have sub prime lenders they can put you with as well.

In addition to what Staci said about fine print,........ "You MAY qualify", you gotta watch how they work the numbers. They can play the numbers to look anyway they want them to. You could walk out after signing papers and find out you agreed to pay twice the price for the car, plus exorbadant finance charges. May make it triple in the end.