Buying a used car, was accepted for one car but not the other?

I went to a dealership and tried to finance a Mazda3 2012 for 13.5k, but the salesperson said he couldn't get the bank to approve that car. He then went to show me another car that he said the bank approved. This other car was a Honda civic 2011 for 13k. He also said that I have higher chance to finance a Honda, Toyota or Nissan. I want to know if banks prefer one Make over the other, or if the guy is screwing with me to buy a specific car. Note that he said he will check to see again in 2 days after telling me that I couldn't finance the Mazda and I refused to buy the Honda.

I went to a dealership and tried to finance a Mazda3 2012 for 13.5k, but the salesperson said he couldn't get the bank to approve that car. He then went to show me another car that he said the bank approved. This other car was a Honda civic 2011 for 13k. He also said that I have higher chance to finance a Honda, Toyota or Nissan. I want to know if banks prefer one Make over the other, or if the guy is screwing with me to buy a specific car. Note that he said he will check to see again in 2 days after telling me that I couldn't finance the Mazda and I refused to buy the Honda. Banks base their decisions on the value of the vehicle, your credit rating, and your ability to pay. The Mazda may be overpriced or your ability to pay may be so close to maxing out that the additional $500 breaks the deal.

Get a loan quote from your bank or credit union. Then base any dealer's offer on that. If you show proof of a better deal elsewhere, another lender may match or beat it to keep the business. Worst case is you go with your bank or credit union. I really recommend avoiding financing through the dealer. You can get a much better rate through a Credit Union, you will also already know how much car you can afford etc. The other benefit of getting pre-approved is you basically walk into that dealer with cash and you have much more haggle room. I got my car down from $14,775 to $11,500.

My loan manager offered different rates for different model years but not for specific makes or models. Perhaps the Civic depreciates less than the Mazda? If you get your approval before you go car shopping you'll know exactly what you can/ can't buy.

Happy shopping. The Mazda was overpriced Obviously it is related to risk and the finance company has reason to believe that there's more risk with the Mazda -- i.e., if they had to re-possess it, they would be less likely to get their money out of it.

Risk is usually compensated for by a higher interest rate and since that wasn't offered as an alternative, maybe the rate is already pretty high.

Seriously, I would look at a new vehicle with the low interest financing -- as low as 0% -- and a term of up to 84 months too. Your monthly payments are probably the same or less. You might have to take a bit less car equipment wise, but the offset is lower maintenance and repair costs over the time frame too You should run away from this deal. Always pay cash for cars. You will thank me later.

I really recommend avoiding financing through the dealer. You can get a much better rate through a Credit Union, you will also already know how much car you can afford etc. The other benefit of getting pre-approved is you basically walk into that dealer with cash and you have much more haggle room. I got my car down from $14,775 to $11,500.

My loan manager offered different rates for different model years but not for specific makes or models. Perhaps the Civic depreciates less than the Mazda? If you get your approval before you go car shopping you'll know exactly what you can/ can't buy.

Happy shopping.

The Mazda was overpriced

Obviously it is related to risk and the finance company has reason to believe that there's more risk with the Mazda -- i.e., if they had to re-possess it, they would be less likely to get their money out of it.

Risk is usually compensated for by a higher interest rate and since that wasn't offered as an alternative, maybe the rate is already pretty high.

Seriously, I would look at a new vehicle with the low interest financing -- as low as 0% -- and a term of up to 84 months too. Your monthly payments are probably the same or less. You might have to take a bit less car equipment wise, but the offset is lower maintenance and repair costs over the time frame too

You should run away from this deal. Always pay cash for cars. You will thank me later.