I just filled out a finance application form at a dealership. The guy tells me to give my $2000 downpayment before i can find out if i'll be approved for financing. Does this sound fishy or should i just go ahead and give him my downpayment.

 

I've never heard of that before. Why do you have to put down $2000? Did the dealer give any reasonable explanation?

 

If it's at a reputable dealership ask for the manager, I'm sure they just want to make sure they get the actual downpayment before they quote you because of technicalities.

Just like music stores won't quote used instruments for trade in because they haven't seen the condition and they don't want to be held to a quote if your **** ends up being trash.

 

My experience has been that if they can show the bank some sort of down payment, it not only helps to get you a loan in the first place, but also helps you to get a better loan (better interest, longer term). If they show cash in hand as $0 when they attempt to get a loan, it could be really hard or even be declined. Check with the Sales manager, but I believe that to be the case here.

 

Thats a dealer tactic made famous by car salesman....before they run your credit or check financing, they size you up to see how much you make and how much you have to throw at them. Tell him to run your credit or you'll buy a bike at the dealer down the street.

 

I am loan writer at a credit union. Don't go with a dealer loan. Check out a credit union and explain to the loan person there what you would like to do.

 

The guy even told me that i might for sure need a co-signer cuz i don't make enough money. But he still asks for the money before they can do a credit check. He says it's cuz they have to pay for the service and if i don't get approved he said he'll do a refund... I still feel a lil weird about this deal....

 

First of all do not give him your money, especially if you feel fishy about it. Second, you are better off getting a loan elsewhere! Third and most important dont put anymoney down. The banks give you a better % rate the more money you borrow. Then on your first monthly payment you can make a payment of like 2,500. But just go and get a personal loan from your bank! That dealer sounds lke a scumbag, however I have heard of showing them that you have the money to put down makes getting a loan easier. Just go to the bank.