New car dealer vs buying at drivetime for subprime?
Please read my situation before responding. I'm not asking if my loan will be approved or not.
I'm going to be looking for a subprime auto loan to rebuild my credit. I intend to make the best decision I can with my situation, if I have options. The car I want at drivetime is selling for $12,300 (09 honda fit sport). Surprisingly, The car actually books not too far under their price. I have $4500 (36%) to put down, and with my calculations, I can easily afford the payment at 17% interest for 3.5 years. (My Girlfriend got that rate and term at drivetime, and we have similar credit). So actually buying this car would make sense in my situation for affordability, and rebuilding my credit.
I have heard that some new car dealers offer sub prime loans too, but do they do them on used cars? Would there be any advantage to buy the same used car from the honda dealer over drivetime as it pertains to the subprime financing offered? Perhaps someone who has sold used cars at a new car dealer would be best to chime in.
Auto finance is what I do for a living and my advice is to find a large dealer that advertises Special Finance and go talk to them. They will have several lenders and should be able to get you a decent loan with a decent lender.
There are tons of dealers like Drivetime out there that are buy here pay here dealers. In my opinion they should all be avoided unless absolutely necessary.
Plenty of subprime lenders will lend to you on used cars.
But AVOID. The rate isn't the half of it, many of them charge thousands extras too.
$4500 is plenty for a car.
Pay cash, avoid debt and prosper.
I don't just talk the talk, I walk the walk. I'm a millionaire & still drive the car I paid $1875 for 8 years ago.
http://www.daveramsey.com/article/drive-free/
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