How Subprime Financing works for Bad Credit Auto Loans

Sub prime buyers should never purchase an Audi, BMW, Cadillac or Mercedes rule number one. They can't afford the payment on those cars let alone the maintenance.

"I want to sell people good cars" while pitching the sell for a Audi! Lmao

This is the greatest YouTube channel I’ve ever seen.

You forgot to mention one thing, Dealers have the ability to up the finance rate from the approved one. So you will work harder but can get all that money back with that added interest that will go to you.

Should Title This "How to Get a Car For Free From a Used Car Dealer"

I agree, it’s pretty often where they spend a lot of your time and don’t end up buying it

Imagine that car comes back to the auction.... oooohwheeeewwww. The west lake financial lane at the auction are the most POS cars in the auction...

I’m going to show this video to all my customers

That's alot of valuable information. Here in California the dealership registers the car not the customer. Then the dealership charges the registration fee for the cars plates.

Need to get them on a contract that says if they miss their first payment you keep the down payment, for a few grand it’s might be worth it😬

Great video !always wondered how the financing works. I’m a mortgage banker and the credit report is the tell-all. Lying shouldn't be an issue. What you need is a “auto bouncer” anybody that lies gets thrown out😉

I love the mentality of the Sub-Prime buyers....I want to buy it today, with zero money down! So , Mr. customer: If you can't manager your own money, why would a bank allow you to manage theirs?

If you are willing to accept $11,2xx AND do a ton of work so a sub prime customer can buy it, would I be wrong to say you would sell it to a person with their own financing in hand for $11,2xx? AND save a ton of time as well?

You need to use a title service to handle your out of state dmv work so you don't have to chase customers around or trust them with the title work. Also, we are free to decline the deal if unable to place the contract on terms financially acceptable to the dealership. Sometimes we have to choose our customers based on risk.

I think faked or forged paycheck stubs should be considered illegal and those persons coming into a dealership with fake paycheck stubs should be charged with fraud.

That made my head hurt. I could only imagine.

Westlake (verification process sucks but they usually pay better on deals) Credit Acceptance is very easy to work with and breeze to get funded plus no recourse I just wish the upfront payout was better. we probably have 10 subprime lenders signed with, these two are really the only ones that end up using all the time.

For 7 years I only sold to buyers who either had their own financing prearranged, or cash on the table. In 2019 we switched to providing some selective secondary lending, and gross sales grew 49.2% It’s a hassle. And the client has to pay back the full purchase amount, plus some pretty heavy interest rates. But for some situations, it’s the only option they can find. Better a dealer who is selective in choosing inventory, and runs everything through an inspection, then provides needed repairs before the sale than the client’s buying elsewhere to get a polished turd for the same money and terms. Keep it up Craig, great content.

As a dealer one of my biggest gripes with special finance, a lot of times the lender has first payment default meaning the customer doesn't make the first payment the dealer is on the hook for the loan. AND Those dealer discount fees typically $750-$1,500 are horrible and so critical to get cash down. I also know of some dealers who made the customer's first payment to avoid the recourse.

the sad truth is you can't be successful if you don't profile your customers