exactly how do the dealers or their finance companies “verify” my salary?
other than federal fraud charges what is to stop me from going to the HR department of my employer and saying: “I’m going to try and buy BMW next Tuesday… could you verify the fact i make $78,000 a year When BMW Finance calls you…” I work for a “Mom and Pop” type hotel so “contributing to the delinquency” of an accountant is not a really big issue for me…
I should point out that if the finance company calls or contacts my employer… they will most likely speak or deal with me directly … what is to stop me from bull shitting them?
Falsifying information on a loan application is fraud. For many people, that is enough reason not to do it.
If your credit is good enough, they will not bother to verify your salary.
If your credit is not good enough, they may ask for a pay stub. I guess you could give them a falsified pay stub. Shouldn’t be a problem unless you do something that ends you up in court, like defaulting on the loan or declaring bankruptcy.
My only car buying experience was through a car dealership owned by the manufacturer of the automobile, so this may be different than how things work elsewhere in the automobile resale world. When i bought my first car at 18 (8 years ago) i put a down payment on the car, and the car company was all too happy finance me through the lending company they owned (i assume as it had the same name as the car manufacturer.)
Not once was i asked for my income, W2s, tax returns, or even a utility bill. They asked, “can you pay $X every month?”
They got my basic information, name, address, phone number, then started sending me all sorts of stuff in the mail. Interest was pretty steep on the loan, maybe they didn’t care about my income, as long as i kept paying the loan.
the last time i financed a car was 2006 and I was making more … but oddly my current credit score is much higher; 653 then vs 783 now… should i be worried about being fucked over by the dealership ?
a co-worker of mine retired from Ford… I’m looking at getting Ford “friend and family” discount should i even worry about getting fucked over by the dealer?
You are not obligated to get dealer financing. I suggest contacting a couple banks and/or credit unions, get pre-approved for the amount you want to finance with whoever gives the lowest rate, then go to the dealer and see what they offer. I strongly suggest NOT trying to falsify your salary.
With your credit score I’m guessing you should qualify for a rate below 3%.
I come from the " car sales people/ dealers are out to fuck you six ways to Sunday"… . and that you should deal with them as if :.i don’t care if your kid has cancer don’t give me that shit about the cost of Chemotherapy to guilt me into paying more…"
…wut
I once read that when it comes to defaulting, most people will screw the utility company and their landlord before they default on a car loan. The simple reason is that the first two have to go through long winded court proceedings to get their money, while the car loan company just sends a tow truck.
All this means that car loan companies are likely to be more relaxed about creditworthiness than utility companies or landlords.
What you want to do is decide what kind of car you want. Then look online and find out the dealer price for that car - not the MSRP. Keep in mind the dealer price is not necessarily the same as the invoice price.
Now that you know how much the dealer paid for the car, you can negotiate a reasonable price for what you will pay for it. Barring very unusual circumstances, the dealer isn’t going to sell you the car for less than he paid for it. But you’re now immune to bullshit claims like “I’d lose money on this sale if I gave you that price.”
Keep in mind, the dealer doesn’t have to meet your price. He may feel that he’s better off waiting for another customer who will pay him more. Be prepared to walk away if you’re not happy with the price.
And never discuss financing arrangements until you’ve settled on a price.
I work in auto sales. The verification of your salary is done through you producing pay stubs if your credit situation isn’t high enough to warrant not bothering with that step and the lenders ask for it. We look at year to date and gross income before taxes. If your stubs align with what you told us on your credit application that we sent to the bank, we’re good. If you falsify, you can be arrested for theft by deception. I have personally seen it happen.
Falsified pay stubs are in fact a big deal and the lenders are very savvy about catching it. Don’t do it, the car will be repoed and you will be a criminal.
Your down payment must have been HUGE, as an eighteen year old RARELY qualifies for a loan of ANY kind due to being a credit zero (a “ghost”).
No. Most reputable dealers do a “risk based” assessment which is a disclosure you must sign that shows you your credit score pulled from one of the agencies. We use Equifax. If you have been disclosed a score higher than what you thought it simply means you will qualify for a lower rate on your potential loan, may not need money down and the bank will loan you MORE money and not cap it like they do with bad credit people.
No. Most employee plans nowadays are non-negotiable. It used to be different but is not any longer. This also ONLY applies to new cars, and if your employee price is $20000 and there’s a $2000 rebate, you can stack that so the car is $18000. But you cannot negotiate further. The major manufacturers will and have suspended the ability of current or former employees ability to dispense employee pricing authorization codes if they discover collusion, further negotiation, etc on employee pricing less rebates.
Since the Fed raised the interest rates recently we are not seeing new car rates lower than roughly 2.99% right now (used to be 1% lower with Credit Unions a year ago). That said I STRONGLY recommend people to let a dealer try to beat their rate, which is often a better rate through that same bank you were pre-approved through. Dealerships and financial institutions have special relationships and they can usually get you a better rate through the same bank than you can get for yourself. Think Wal-Mart discount.
This has changed dramatically for most places.
Not sure what you’re saying, but defaulting on a car loan will fuck your credit far faster and more deeply than utilities gone into collection.
Some sound advice, some not. If you have shitty credit it’s best to disclose that to me immediately. If your credit is shit and you have no money down there’s no point in even bothering to look at that $30k car you want. You won’t get it. What YOU want and what you CAN get are often very different according to the lenders in accordance with your credit situation. I will not let you test drive a car FIRST if you claim bad credit and no money down. It’s a waste of time and I don’t want to break your heart and tell you that no, you cannot buy that Chevy Impala LTZ you wanted, but I can sell you this Chevy Spark?!?!?!
I’d add a separate observation related to FoieGrasIsEvil’s insider view. He may or may not agree, but IME it’s definitely true. Some dealers are more oriented toward a typically lower credit rated clientele. They tend to carry over that attitude even to very price sensitive higher rated customers, or cash paying customers. The latter isn’t OP’s question, but I’ve never borrowed to buy a car. I don’t advertise that right upfront in case I can get a better price if the dealer thinks there might be additional profit in a loan/lease once a price is agreed. But my actual goal is the lowest price, and a loan/lease is very unlikely (wouldn’t absolutely rule it out if 0%, but I’ve never actually done it).
There are a bunch of car dealers on a strip in a working class/heavily immigrant area near me. Not worth my time to go visit them, I’ve learned by wasting my time with them. They are geared to make money off unsophisticated and/or lower income customers who use credit. Other dealers are more willing to get in tune with my simple approach: offer me the car for less than anybody else and I’ll write you a check for it, easy for both of us, then spend your time making more money on the next deal.
Note, I don’t pretend to get the absolute lowest prices of anybody ever. I don’t go to lots of places over months and throw fits etc. as some people claim to do to get exceptional deals. But I want close to the best possible price, and it’s all about that. I think it’s also still true of many people with 800-ish credit scores who do use loans.
To some extent this dealer difference sorts itself out by make, but there are still dealers in both categories for both mass market and luxury brands.
In fact, auto lending practices aimed at lower-rated customers was the subject of Last Week Tonight with Jon Oliver yesterday. The YouTube video of the segment is here.
I’m curious about this. Can you share more details?
Presumably, this requires someone submitting a fraudulent loan doc, then producing actual pay stubs that don’t match? Or producing fake pay stubs that are found out as fake?
Because if someone submits a fraudulent loan doc and then simply refuses to show pay stubs, all you can say is that it couldn’t be verified, right?
Sounds to me like the dealership should be worried about being fucked over by you, given that you are contemplating falsification of information.
You have any experience with Uber drivers? I have heard anecdotally that you should never even mention an intent to use your car for ride sharing. You won’t get financing and a dealer might not honor your warranty because the car is being used for commercial purposes. Is this true?
I just bought a brand new car last year and they checked my credit but they didn’t require me to produce any paystubs or anything.
You might want to read through this buying guide written by car dealers on Reddit. It gives you lots of information about how to use the Internet to determine a fair price for the car you want, how to negotiate, some discussion of financing, etc.
The forum also has plenty of information from car salesmen themselves. Among the points that are generally made and agreed with, is that salesmen do not want to deal with jerks. Many have no problem “losing” a sale to someone who might end up being a pain in their ass for a long time to come. There’s also discussion how the tactic of blasting emails to 20 dealers saying that you’re going to buy the offer with the best price, 48 hours from now, doesn’t really work.
I know these don’t answer your specific question about financing, but thought the link may be of interest to you generally.
Good luck in your car buying. Let us know how it turns out.
If you are using the X Plan the purchase will be very straightforward regarding price. The price is what it is, no haggling. You can see what the price will be by logging in to the plan website, which your friend can invite you to.
That will all be separate from financing, though. The plan guarantees the price, the financing is in your hands.