Get approved for car loan. How to get financed for a truck van suv

 I talked with a finance / business manager at the car dealership I used to work for today about lending and finance in today’s tough lending climate. Here is what he said.

 Bo the lenders have gone south on us so much that GMAC is not paying us to get a deal financed at another lender. Citibank said we had to get at least 5 deals bought per month for 3 months or they would drop us from the dealership lending program. Well we sent them as many deals as we could but they would not finance the deals we sent them. So we did not meet the quota they mandated and we got dropped. We heard they dropped about 80 dealerships and then laid off about 3000 workers. Same thing happened with Well Fargo. The point here is no one is buying anything less than a 700 FICO score with a great debt to income ratio and some equity in the deal. This means you cannot trade your upside down car under any circumstance and if you have no trade in you better have some money down.

 So I asked what are you doing to keep the wheels rolling? He said that the owner was using his personal discretion lender to finance his deals. The owner put a sum of his own money in an account and lends against his own money. He sets the interest rate and decides who gets financed and who doesn’t. They put an ignition interlock and GPS device on each car to protect the investment. If the customer does not pay they turn the interlock off and find out where he car is. The customer has to call in and make payment to re instate the interlock.

 I asked what are the main ingredients to get a deal financed on this program. 1000 dollars down and stable long term job history. Only one car sold was a new car. We are talking about used cars that are less than 12000 dollars in most if not all cases.

 He also said that most buyers with good credit are not buying or are not using finance if they buy. I remember when I worked less than10 percent paid cash for cars. So dealerships are hurting for business and right now is a good time to go get a car if your credit is marginal, you have some money down and your job is good enough to be your credit.