Car Buying Tricks 2009

Do you remember going to the circus and hearing all those booth directors telling you to “step right up, three balls for a dollar, win a prize”? They said it was easy, everyone wins. That used to be the slogan in the car buying business. Market ads that targeted the customer with good credit, to those that had credit issues and credit applications that will not be refused! Mail that arrived in your mailbox that told of huge sales that banks were having and each and every credit union would be on hand ready to lend thousands of dollars to those that would apply. Look around, times have changed. The way that banks are buying contracts have now come under great scrutiny. Consider the facts and look at the “before” and “after” effects of the economy. Before: most banks that would lend to consumers had policies they were following to either approve, deny, or condition a contract. The credit manager at the dealership or bank would review the terms of the lender and if he or she didn’t like what was given, they would call the lender’s representative and haggle over the customer, and try to get a better rate or extend the months of the contract. Obviously, the dealership or bank was only doing this to make more money on you and I. Also, if the finance director didn’t like the lender’s terms they would shop you around to many other lenders, sometimes in excess of 30 lenders, and get what they felt was the best way to make money on you. Today: Take that number of lenders associated with buying down to around half. Since the economic hit, most dealerships are now down to about half of what they had to call and confirm a contract. With that, you can imagine the terms these banks were using, and the new policies that have been handed down make it near impossible for the lender to haggle over you. Most “good” credit risks have now been denied credit, using the real factors that should be used in lending, such as can this consumer really handle this type of vehicle. Also, in the afore mentioned, we don’t see those lenders so hot and heavy now to sell advertising. Money to lend has gone way down, as had the reasons to lend to consumers with possible marginal credit. Before: Bet you didn’ t know this one: most banks had a handout of each lender’s practice guidelines each month. It would show the what the dealership or bank could expect as far as interest rate and amount of months they could go on a certain credit score. If the lender would study this sheet, they could “spot” Category:Home › Autos • Will the trend toward economy-size car models lead Americans back to buying smaller-sized cars? — part 2 • You should never use after-market auto parts when maintaining or fixing your car • Should a new car be rust-proofed? • Will the trend toward economy-size car models lead Americans back to buying smaller-sized cars? — part 1 • Five safest cars in North America • How to ensure your teen drives safely after getting a license • Pros and cons of using an hydrogen generator for your car • DIY automotive maintenance: How to change the oil