You're going to send me to a dealer. Why shouldn't I just go by myself?
One reason, then two more. First, a lot of dealers work with only one or two lenders (while our dealers are electronically linked to hundreds). Second, most banks, credit unions and finance companies will only loan money for a car or truck when there is a dealer involved to structure the sale. Third, the Web loan outfits who do indeed send you a check and work around dealers, those folks charge more. Makes sense, since it's more of a credit card loan than a car loan at that point.
Just how bad is credit nowadays?
If you believe the media hype, it's a total shutdown. In real-life, it's tighter but not impossible.
• GM is only looking at 700 credit scores and up for its in-house financing -- but bad credit customers have always paid more anyway, and auto dealers have looked at other lenders beside their own company for years.
• In five states, auto loans are really tough because the housing market is so battered. On the flipside, economists say there are 23 states not even in a recession at this point.
4)So what kind of interest rate can I expect?
At of late 2008, good credit scores are seeing 6-to-7 percent rates (depending) and that bad credit loans, 620 and below, are starting at 15-16 percent and working their way up.