Most of us purchase a vehicle every two, three, four, or five years. Dealerships sell vehicles everyday. When we negotiate the purchase of our vehicle most of us are at a disadvantage. Preparation can help.
There are many quality Dealerships owned and operated by good honest people. Dealerships have a right to earn a profit and have a right to maximize their profits. This is the American way!
Many of us have car stories, either experienced by us or by friends and family. Aggressive sales tactics are prevalent in the industry and these tactics can lead customers to make poor decisions.
Our goal is to help individuals purchase and finance vehicles in a competitive market. Some customers pay more and some pay less. We want you to pay less. Be StreetSmart!
Unique and innovative services for those with less than perfect credit
We are currently developing unique and innovative services for car buyers with less than perfect credit. Customers with excellent credit (known as prime borrowers) can take advantage of “direct lending” as they can negotiate and arrange their car loans directly with a lender (their bank, credit union, etc.). Customers with less than perfect credit (known as sub prime borrowers) are subject to “indirect lending”. Sub prime car loans are most often arranged through Dealerships and sub prime borrowers do not have the opportunity to negotiate or arrange their car loans directly with a lender. Unlike a prime borrower, it is very difficult for a sub prime borrower to shop for a competitive interest rate (or APR). A sub prime borrower must take extra care to avoid paying more for a car (or accepting less for a trade-in) in order to either secure financing or to secure financing at a competitive rate.
In addition, markups on APR can occur at the dealership and are usually “hidden” from the customer. The amount of these markups is not disclosed. As a sub prime borrower, it can be difficult to know how to measure or evaluate the risk severity of your own credit profile and how the level of risk severity translates to a competitive risk adjusted interest rate. If the finance company qualifies you for a rate of 14% it is easy for the Dealership to markup the rate to 16% or more (without disclosing the markup amount to you) and pocket the difference as additional profit. Is this a necessary profit? Didn’t they make enough on the car you are purchasing? Didn’t they make enough on your trade-in? Didn’t they make enough on your add-ons and extended warranty purchases?
If unique and innovative services for car buyers with less than perfect credit would be important to you we would like to hear from you. Please e-mail us at