How difficult is getting financing in a car dealership?
 

I'm interested in buying a used Mercedes and I'm just wonder how hard is it to get approval for fianacing? I know I can just go and ask but I would just like to have a general idea. My plan is to finance around 20-25k over 3-4 years (depending on the rate). Income is stable and credit rating is "good".

TIA

Usually you sit down with the business manager, and they plug your income, down payment, etc into the computer... then they run your credit report, and submit the details to a bunch of banks for approval. You sit and have a coffee, and they tell you who you've been approved by, at what rate, etc.

If you have a good bank.. it's probably in your best interests to sit down with them in advance, see what they'll approve you for and at what rate... then you can go into the dealership with "cash in hand" so to speak, and do your negotiating for a cash deal... even though you're not paying cash, per se... you're getting the loan from your own bank ahead of time.

^ i have a p/t job that pulls ~1500/month. Do u think I should even bother going?

Just make up a number as your income and say you work for yourself. So the only thing they do is a credit check. If your credit is good, it will get approved. :)

If that doesn't work, get someone to co-sign.

^gotcha, sounds good

1500/month? is that all only towards your car? just remember bmw/benz especially C series you pay a premium for insurance, gas you have to use at least 91, and put aside 1-5 hundred dollars a month for repair/maintance.

1500, maybe you should consider if in the long run getting a benz is right for you

My C230 is cheaper on insurance than a Nissan Sentra. The 8 air bags, front/rear subframes, 5 star crash test rating, and electronic ignition make this car safe and difficult to steal. Its rarely stolen too, since there's not a lot of demand for parts.

He's buying from the dealer, he'll get another 80K kms warranty that covers almost everything. Maintenance on these cars is cheap, 15K oil changes are $80 if you DIY.

I only pay $100/mn in gas right now, so the difference between 87 and 91 is $10 isn't much of a deciding factor.

Thanks. I have other jobs (not dealing drugs FYI, hahaha) but 1500 is my "official" income which has a pay-stub attached to it. I currently drives a 330 so I understand how parts/labour cost a lot.

And yea, getting a car is never a good investment, I know that fully. But the other side of my says that I should enjoy myself while I'm still young or else I'd never have the chance after I have a family/children & wut not. Tough decision.

I financed my car after leasing, and MB gave me a 3.9% rate. Much better than the bank and close to the 2.9% best rate of any manufacturer at the time. I bet MB's current rate on used vehicles is still cheap.

What car are you looking to buy? Have you been on MBWorld to check out problems with it?

I'm looking at the SLK. I'm seeing a couple that goes for ~40k. So I figure if I trade my car, 15-20k, then add another 5-10k, I'd be able to only finance about 20-25k over 3-4 years. Yea, now that u've mentioned it, one of the reasons I'm looking for a trade is I want the peace of mind of a manufactuer warranty. My car is starting to have small problems here & there and I would wanna get rid of it before I have to shell out big money for a major fix.

The SLK is an awesome car, I'd love to have one if I didn't need a backseat.

You do know that its cheaper to keep your current car than start over on a new car? Even a huge expense (motor or tranny blowing up!) would be less than the $5-10K you'll throw at the SLK initially. This "logic" is what keeps me in my car, rather than buying the e46 M3 I want! :D

Not true, the financing institute would require proof of income (by means of NOA or some other government issued documents).

UNLESS the business manager that's helping you is really good. By good I mean able to bitch their way to get the bank to waive that stipulation. I know a lot of corrupted business managers that provide fraudulent income verification documents....lol

With declared $1500/month income, you shouldn't have any problem getting a loan for $20-25k, but the rate they give you might be higher, or they'll make you have a longer term/amortization.

It might be different if it is a bank. I used bmw canada. They didn't ask for any proof of income.