Bad Credit? Chrysler and GM Offering Loans
Okay, so your credit's not perfect. Not a problem.
With car sales humming along, even buyers with dinged credit are welcome on dealers' lots nowadays.
If you're looking to buy a GM or Chrysler, you're in luck. Chrysler is teaming with Santander Consumer USA Inc. to expand availability of sub-prime financing, offering buyers with less-than-perfect credit loan rates as much as 30 percent lower than competitors.
Meanwhile, GM intends to expand its sub-prime business, looking beyond its relationship with Ally Financial (formerly GMAC Financial). Ally, still smarting from heavy losses in the sub-prime mortgage market, is taking a conservative approach to sub-prime auto loans.
A GM spokesman said that the company is not in discussions with Santander Consumer, but did not rule out other sub-prime lenders.
Needless to say, GM, like Chrysler, needs bodies in showrooms, so if you're looking for a deal, and your credit's not great, the coming months look to be a great time to shop.
My Recommendation for Car Shoppers
TrueCar, Edmunds, and 1-800 Car Show are the quickest way to see the lowest car prices in your area. These sites show you no-haggle prices from dealers closest to you - and the deals are usually really good. This should be the first step you take when negotiating your car price. Follow this up with my checklist to make sure you squeeze out every last bit of savings.California Residents - Important:
There is a new online car buying service called Roadster, available only to California residents, which I highly recommend you try - especially if you hate the stress of haggling with a car salesman. They provide an expert concierge who negotiates the price of the car and delivers it to your home with zero hassle - you never have to interact with a dealership. Here is my in-depth review of Roadster and why I recommend it.- Gregg Fidan
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About: Gregg Fidan
Gregg Fidan + is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.
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