My son is looking to buy a new Camry, he makes good money now, but has poor credit from the past. 501 credit score. One dealer said he would sell with 25% down, no specifics on terms. Question for anybody: What is the best way to finance in a situation like this, banks, dealerships, how can you negotiate with credit like this??

Someone with good credit can co-sign for the loan.

Someone with good credit can co-sign for the loan.

Unfortunately for him that's not going to happen.

Doesn't sound like there is room for negotiations when no one trusts him well enough to co-sign for the loan. He better establish credit with bills in his name or a credit card he pays on time.

He has a couple of options. The first one - which doesn't sound likely - is to put the 25% or more down. The second option is to pay a higher rate. There are plenty of lending companies who will finance him, but the rates are generally very high - we're talking credit card interest.

I suppsoe there's a third option - your son can work hard to re-establish credit - clear up old issues, obtain a secured credit card and use it regularly, etc. It doesn't take long for a credit score to climb if the right things are being done.

Best of luck...

He has a couple of options. The first one - which doesn't sound likely - is to put the 25% or more down. The second option is to pay a higher rate. There are plenty of lending companies who will finance him, but the rates are generally very high - we're talking credit card interest.

I suppsoe there's a third option - your son can work hard to re-establish credit - clear up old issues, obtain a secured credit card and use it regularly, etc. It doesn't take long for a credit score to climb if the right things are being done.

Best of luck...


Well he can do the 25% down. Just wondering how bad it will be and who to approach about loans. I have been given this internet site
https://secure.autocreditfinders.com/autoloan/autoloan.asp?AppSource=affid_64&WebSession=1646378

If I can't come up with a better idea ,I may tell him to apply here and see what transpires. I don't want him to apply and be rejected all over the place.

Any of the online creditors are a good place to start, but it might be worth a visit to a local dealer. With 25% down, I'm sure he'll get bought - probably not by TMCC or a major bank - but he'll definitely get a loan.

Would he consider a used vehicle - the interest rate will still be high (maybe higher) but at least the principle will be smaller and the down payment larger?

Take care,
Jerry

Well he tried the autocreditfinders which I was told was the place to go for people with poor credit and they have rejected him. So now the dealers seem to be the only place left. However I am know they will stick him on overprice because they know they have him over a barrel, so not only high interest 16 to 22 but also overprice on the car. Double bad deal. There is also the dealer scam with you take home the vehicle they call back with change of terms. I am considering a personal loan written contractfrom me to him but I wonder can I put my name on title as lien holder so I can reposses and sell if necessary and is this advisable? I know better than to cosign.

You could certainly do that, which would protect you more than co-signing on the loan. It would simply involve a contract and some time at the DMV office for you to place the lien on the title. The only downside I see is that a private loan from Dad to Son will do nothing to help Son's credit rating.

At the dealership financing doesn't have to be discussed until after a price has been negotiated - never feel as if you need to work both sides of the deal simultaneously.

Also - I doubt a dealer would jack up the price too much because that would decrease the equity ratio, thereby increasing the risk of the deal being denied by the finance company.

Good luck...

Take care,
Jerry