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Thread: Financing a New Car

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    Featured Member strippername's Avatar
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    Default Financing a New Car

    Is it possible to get financing on a new/used car if you are stripper? Do you tell the dealer what you do? I am about to go look at cars and I am a bit nervous. I got denied online for financing because I have insufficient credit history, too few or no installment accounts, too few or no revolving accounts and credit bureau information is missing. (taken directly from my DENIED letter) Any and all advice/help appreciated.

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    Banned malayataylor's Avatar
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    Default Re: Financing a New Car

    Show them bank statements and you can get just about anything. this is what i did.

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    Featured Member strippername's Avatar
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    Default Re: Financing a New Car

    I was living in a different country until a few months ago and did not use a bank account there.

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    Featured Member silk55's Avatar
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    Default Re: Financing a New Car

    "consulting" usually works
    "The point is, ladies and gentlemen, that greed, for lack of a better word, is good. Greed is right. Greed works" -GORDON GECCO

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    goldengrl69
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    Default Re: Financing a New Car

    I hate leases for cars.

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    Default Re: Financing a New Car

    I use to own a small buy here pay here and did not do financing but you are going to have to have at least a 650-700 credit score at most dealerships including bank statements. Thats just the way it is now since the car companies had bail outs. They are much stricter on financing now. Mortgages are even worse, believe me I own two homes and the shit they need right now for refi is not what I needed 5 years ago!

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    Featured Member OJenni!'s Avatar
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    Default Re: Financing a New Car

    Quote Originally Posted by strippername View Post
    Is it possible to get financing on a new/used car if you are stripper? Do you tell the dealer what you do? I am about to go look at cars and I am a bit nervous. I got denied online for financing because I have insufficient credit history, too few or no installment accounts, too few or no revolving accounts and credit bureau information is missing. (taken directly from my DENIED letter) Any and all advice/help appreciated.

    Even if you can, don't do it. Waste of money IMO.

    If you have $3,000 to put down on a new car, you are better off buying a used car for $3,000 and avoiding the payments. Why?

    Well I financed the car I own now, I am just coming to the end of my finance term. The interest I pay is based on the car being worth $25,000 not the $6,000 it is currently worth! Yeah my payments have been the same monthly, around $224 a month (I gave a large down payment) but when you do the math the interest is still the same! Yeah my car may have been worth the $224 a month when I first bought it, but is it now?

    And if you are lucky (well actually more like diligent) enough to have enough money to buy a house mortgage free then do it.



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    Veteran Member Starxx's Avatar
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    Default Re: Financing a New Car

    It is possible but it'll probably cost you a pretty penny. I went to buy a new car only a couple months after I started dancing before I filed taxes so I didn't have proof of income, just bank statements which really don't equal to much at the car dealership. They want proof of income, and bank statements over a couple of months just doesn't cut it.

    I had 70% of the cars worth to put down (car cost 41k), and they still did not want to give me a loan. I'm 20 years old and have good credit, just limited credit. I expected to get a loan with no problem with the huge down payment I had, but nopeee.

    I ended up getting the loan, but listen to the loan I got. 24% interest rate AND I had to pay an extra 6k just for the loan and I had to get extended warranty (2k). I would never recommend this interest rate if you don't plan on paying it off ASAP! My car will be paid off fully within a little over a year from the purchase date. I still probably paid 2-3k in interest total, if not a little more. Also the main reason I even bothered to get a loan instead of waiting to pay full price was because I wanted it for credit purposes. I want to have good credit in the future to buy a house and with how strict they are nowadays with credit, you need it. Soooo I paid a hefty price for credit.

    I wouldn't suggest anyone accept a loan like I got, but it is possible! Live and learn.

    Oh and yes, I told the dealer what I did.

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    Featured Member OJenni!'s Avatar
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    Default Re: Financing a New Car

    Quote Originally Posted by Starxx View Post
    It is possible but it'll probably cost you a pretty penny. I went to buy a new car only a couple months after I started dancing before I filed taxes so I didn't have proof of income, just bank statements which really don't equal to much at the car dealership. They want proof of income, and bank statements over a couple of months just doesn't cut it.

    I had 70% of the cars worth to put down (car cost 41k), and they still did not want to give me a loan. I'm 20 years old and have good credit, just limited credit. I expected to get a loan with no problem with the huge down payment I had, but nopeee.

    I ended up getting the loan, but listen to the loan I got. 24% interest rate AND I had to pay an extra 6k just for the loan and I had to get extended warranty (2k). I would never recommend this interest rate if you don't plan on paying it off ASAP! My car will be paid off fully within a little over a year from the purchase date. I still probably paid 2-3k in interest total, if not a little more. Also the main reason I even bothered to get a loan instead of waiting to pay full price was because I wanted it for credit purposes. I want to have good credit in the future to buy a house and with how strict they are nowadays with credit, you need it. Soooo I paid a hefty price for credit.

    I wouldn't suggest anyone accept a loan like I got, but it is possible! Live and learn.
    As well as the fact that cars depreciate in value. Your car may have been worth $41K the day you bought it, but five years down the line? Maybe along the lines of 10K if it has low mileage!



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    Veteran Member Starxx's Avatar
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    Default Re: Financing a New Car

    Quote Originally Posted by OJenni! View Post
    As well as the fact that cars depreciate in value. Your car may have been worth $41K the day you bought it, but five years down the line? Maybe along the lines of 10K if it has low mileage!
    This is true, but thats why I bought a new car, to get the full use out of it. I didn't buy a brand new car to sell it in a couple of years, thats pretty dumb to me. My car will last 10 years with no major problems if cared for properly.

    To each their own, but I was raised on buying new cars so that you know nothing is wrong with them and that way you can get 10+ years out of your car. If you only want a car for a couple of years, buy used.

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    Featured Member strippername's Avatar
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    Default Re: Financing a New Car

    I actually have a decent credit score! I went to a buy here, pay here and they said my credit was too good. From here on I am going to deposit every dollar that I make so I can prove my income. My mom said that she would co-sign, but I think she changed her mind. I should probably just buy a car with 3-5000 dollars cash. I need reliable. I don't know anyone who knows anything about cars and that is probably the only reason why I keep thinking that I REALLY need a new car. They smell better, too.

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    Veteran Member Starxx's Avatar
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    Default Re: Financing a New Car

    Quote Originally Posted by strippername View Post
    I actually have a decent credit score! I went to a buy here, pay here and they said my credit was too good. From here on I am going to deposit every dollar that I make so I can prove my income. My mom said that she would co-sign, but I think she changed her mind. I should probably just buy a car with 3-5000 dollars cash. I need reliable. I don't know anyone who knows anything about cars and that is probably the only reason why I keep thinking that I REALLY need a new car. They smell better, too.
    Most people don't buy new cars. I'd say go used if you just want reliable. New car smell only lasts a couple of months (if that) anyways

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    Featured Member kandie_kitten's Avatar
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    Default Re: Financing a New Car

    New car doesn't always mean reliable. I bought a brand new luxury car from a reputable dealer and it was in the shop at least once a month for a major repair.

    On the other side, I bought a 10 year old Hyundai as my backup car from the "bargain lot" of a dealer for $3000. It has been through hell but it is the most reliable thing ever. Plows through snow and sleet, starts even in the most extreme weather conditions, gets good mileage, and the only thing its needed is new windshield blades. I've had it for 2 years now, and it's pretty much paid for itself, considering how much I would have spent on another car for lease or for new car financing.

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    Banned Melonie's Avatar
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    Default Re: Financing a New Car

    lately, just showing bank statements as proof of income is becoming problematic ... because there is no real proof that the bank transaction money was the result of your own earnings. Instead the banks want to see tax returns.

    Also a side note. Whenever anyone purchases a new car, the IRS is automatically informed as part of the state title registration process. The IRS is provided with the name, address, SS# or TI# of the buyer, along with the purchase price and the details of any loan arrangements. The IRS then loads this information into their computers and they cross-check that the amount of money spend on the car is more or less in proportion to the amount of income reported on previous tax returns less local costs of living ( less any other monthly payments that show up on the person's credit report ). Purchasing an expensive car without having previously filed tax returns showing substantial income will pretty much guarantee that the IRS will investigate further.

    Also, purchasing a second hand car - with or without financing - will also generate an automatic report to the IRS. However if the purchase price is really low ( like the $3000 example ) it won't attract IRS attention no matter what your tax return situation happens to be.

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    Veteran Member NREXM's Avatar
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    Default Re: Financing a New Car

    I had the same problem when I was trying to get financing for a new car. I got denied by both the dealership and my bank before of insufficient credit and lack of revolving accounts. I went to a credit union and was approved. I didn't have bank statements nor tax records but they allowed me financing for "estimated income," the year that I bought the car. I also put half down in cash so they were a little more willing to lend to me.

    I'd seriously got to a credit union; sometimes they are a lot more lax about lending. That or get someone to co-sign for you.

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    Featured Member silk55's Avatar
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    Default Re: Financing a New Car

    Also to establish a credit history. You could try a Person to Person lending site
    "The point is, ladies and gentlemen, that greed, for lack of a better word, is good. Greed is right. Greed works" -GORDON GECCO

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    Senior Member rebecca1974's Avatar
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    Default Re: Financing a New Car

    dont most dealers have in housing financing? I put down 3000 on a 10000 dollar car and I dint have to shew bank statements! My APR was way high though!

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    Banned Melonie's Avatar
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    Default Re: Financing a New Car

    ^^^ yes some dealers act as a front end for 'finance companies'. These 'finance companies' specialize in making 'subprime' auto loans at high interest rates ... with the high interest charges then being used to offset the expected high level of loan defaults and/or losses in relative value of a repossessed vehicle versus the outstanding loan balance on that vehicle. As such, these 'finance companies' are increasingly requiring enough of a down payment to cover the vehicle's expected first year 'depreciation' ( in the above case 30%). But they are far less 'picky' in regard to verifying the earnings level or getting upset by the poor credit history of the would-be borrower. Essentially, they don't have to be since a default by the borrower during the first year or two of the loan will usually result in the 'finance company' earning a profit on the belly-up auto loan ( between the auction price of the repo'd vehicle plus the kept down payment money plus the monthly payments that were actually made ).

    Agreed that credit unions have had more 'latitude' in the past in setting creditworthiness requirements upon which the credit committee will say 'yea' or 'nay' to a new loan application. However, as credit union failures rise ( yes they can and do fail just like banks ), and as the NCUA is now totally broke ( the credit union equivalent of the FDIC which is also totally broke ) from paying off depositors at already failed credit unions, even credit union financial / risk management regulations are now being significantly tightened. Thus many credit unions are now far less 'forgiving' toward would-be borrowers than they once were. However, credit unions ARE more flexible in situations where their actual loan loss risk is low despite the would-be borrower's unverifiable income and/or poor credit score ( as with the 50% down payment situation posted above ).

    Lately there are even new 'rent to buy' auto dealers ( like Time Buyer ) appearing, who are now using the 'Rent-A-Center' business model for auto sales ... i.e. inflated initial purchase price, but no money down, huge interest charges, and you finally get title to the vehicle after 5 years of payments totaling twice what the vehicle was really worth at the time of purchase. This is financial exploitation at its best ... but as the lending standards / regulations tighten at 'mainstream' auto loan sources, this is increasingly the only 'guaranteed' option by which someone with no verifiable income, with a poor credit score, and with little or no money available to make a down payment, can be sitting in the driver's seat of a recent model used car.

    I don't mean to preach, but in the eyes of mainstream lenders, exotic dancers combine three stereotypical 'negative' economic traits. First, they are self-employed businesses with no guarantee that next week's 'paycheck' will be the same as last week's 'paycheck'. Next, they work in a service industry that is totally dependent on 'luxury spending' by customers ... customers who are facing increasing costs of paying for 'necessities' leaving less money to be spent on 'luxuries'. Third, they arguably work in the 'sex' industry, which ( thanks to certain strip clubs, adult bookstores, adult websites, escort agencies etc.) have a terrible history of financial responsibility and are notoriously difficult to 'collect' owed money from.

    As others have posted, from this point forward, about the only way that an exotic dancer can avoid becoming the victim of financial exploitation when purchasing a car is to save up the entire amount of the purchase price + tax + license / registration and pay cash to the car dealer.
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    Last edited by Melonie; 08-22-2010 at 06:07 PM.

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    Default Re: Financing a New Car

    Melonie , what is she to do if she has bad credit?if the banks wont finance her, she might have to go through the in-house-financing route! You can always pay off your car quicker to avoid the high financing chargers, or as someone said by a car for 3000, but what cars are good for 3000?Any?

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    Featured Member kandie_kitten's Avatar
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    Default Re: Financing a New Car

    ^Like I posted, many reputable dealers have a bargain lot, with used cars in great shape for under $5000.

    The car I bought for $3000 is a champ and has needed nothing in the 2 years since I bought it. My parents bought a "backup car" for $2500 that also runs great.

    No, it won't be a posh little sportscar, but you can find a reliable car for cheap if you look.

    I had a friend who went with those car dealers who "finance anyone", that basically follows the rent to buy model (she went to drivehere.com). She had bad credit, and needed a car immediately, so she felt it was her only option. The only cars on the lot had 200,000+ miles, were missing parts, had bent frames, were the results of stolen car auctions, etc.

    She ended up having to pay $500 a month for a 12 year old Hyundai Elantra with 175,000 miles on it and body damage. She can't pay it out early to get out of it, that's part of the contract. She has to pay their inflated value--she'll end up paying 12,500 for the car, which is worth maybe $2000.

    PLEASE don't go that route. They're awful; save to buy a car from a reputable dealer outright.

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    Senior Member rebecca1974's Avatar
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    Default Re: Financing a New Car

    I always ask if i can take the car to a mechanic especially when buying a car from a small dealer, they have these computers you can plug in to the car to see if the electronics are working, aka engine etc

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    Default Re: Financing a New Car

    Buy here pay heres are nothing new melonie, they have been around forever! They are lots with older model cars and will finance you, you pay weekly and interest in astronoical. If you have a 700-800 credit score and tax returns, bank statements you can pretty uch get financing for whatever you want. They judge you on credit for everything now a days even car insurance companies base your rate on your credit score!

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    Banned Melonie's Avatar
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    Default Re: Financing a New Car

    You can always pay off your car quicker to avoid the high financing charges
    She can't pay it out early to get out of it, that's part of the contract
    this is another 'dirty little secret' of subprime auto financing and/or 'rent to own' used car dealers. Unlike conventional loans where the interest payment is 'newly' calculated every month based on the remaining balance of the loan, many of the 'subprime' finance companies actually calculate out at the beginning that X total dollars of interest would be paid if all payments were made on time and then tack this pre-calculated interest amount onto the original loan. Thus you can pay down the loan early, but the total number of dollars you will have to pay will not change a bit. A few 'subprime' finance companies as well as 'rent to own' used car dealers also impose and out-and-out penalty charge for early repayment.

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