0
When you're buying a car and your credit it bad does the car dealer have to pay the bank a fee to buy your loan?
Wiki User
∙ 12y ago
Yes, In some cases. If you are only capable of being financed by a sub-prime
or secondary lender, there is a fee or comparatively a closing cost to secure the
funds necessary to finance that loan. Unfortunately you may have not to many
options as far as the vehicle on the lot you get to take home. The vehicle will have to be able to absorb the cost to finance as well as fall in the criteria, age, mileage and price in which the lender will be willing to finance. this is not an easy feat and can be discouraging. The dealer will not tell you there is a cost associated with this purchase because of the truth in lending laws. Good luck
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
What is buying by credit?
This is the process of buying goods without instant payment.
How do you make money using credit card?
get cards from evry bank and sell it to junk dealer ???
Can you use line of credit to buy a house?
You can contact your bank or financial institution for Housing Loan for buying a house, by using their line of credit.
What is the difference among a investors savings bank and a credit union?
One of the main differences of and investors savings bank, and a Credit Union is ownership. The members of a Credit Union are the owners of the bank, with every depoist into their account buying shares in the bank. A savings bank is directed by an elected board of directors, and usually deal with real estate financing.
What is the difference between allowing customers to purchase goods on credit and allowing them to use their credit card?
Credit card is just a card you get from your bank with extra benefits(interest rates, online purchases, etc)and you can have your own money (positive +balance) on the card. Buying on credit is purchasing goods with money that's not yours(-balance). Eg: buying a car through a bank etc..
How does the availability of consumer credit benefit the car dealer from whom you are buying the car?
Well, for starters it allows people to buy the car. Secondly, a bank contracted with the dealer - that is to say the dealer handles the financing - will pay the dealer anywhere from a $100 "flat" to up to 2% APR on the loan. They will have to pay back the difference to the bank if you pay off the the loan early. If you source your own loan, then it doesn't benifit the dealer. Since they are major sources of lending, dealers will often have cheaper sources of financing than is available to the average consumer. When this is the case, it is cheaper for you to go through the dealer regardless of what the dealer is getting paid.
What is the difference between hire purchase and bank credit?
With bank credit, you are buying it - and making monthly payments to the bank which loaned you the money. With hire/purchase, you are buying it on a month-by-month basis, and paying the person who owns it once a month, until it is "paid off" and you then own it. Surprisingly, "hire/purchase" frequently turns out to be the more expensive of the two in the long run.
Where can one fill out an application for a car loan?
Bank, credit lending warehouse, car dealership they're buying the car from.
If the car dealer lost original financing contract for the bank after buying a car 2 weeks ago and they want you to sign a new one can you use this to get out of the contract wo a repo on your credit?
A bank contract is only one of many things you signed when you intended to purchase the vehicle. The bank is the one to log the reposession so the dealers copy and the banks copy would have to be lost.
How do you take over someone's auto loan?
You can coordinate this with his bank, or do the loan at your bank to pay his bank off. It cannot just be handed over, you have to go through a credit check just as if you were buying it new.
How can you write-off buying a car with an Equity line of credit?
Equity line of credit is with a Specific Bank/c.u. vouching for the $$$ their Trade In (?) will bring in a given 'Deal'....? Bank vouches for your being able to use that Equity/T.I.(?) amount in a car Deal(?)....
How do you record in a manual accounting system the transaction of buying equipment from say company A for 32500incl and paying a deposit of 6000 and borrowing the balance from the bank. Help please?
[Debit] Equipment 32500 [Credit] Cash 6000 [Credit] Loan from bank 26500
