What is the difference between Prime Lending and Special Finance or Sub-prime auto loan?
Prime lending is for people who have outstanding credit, with no recent negative reports on their credit history. Special Finance, also know as Sub-prime auto loans, are granted to people who have less than ideal credit. How do I know if I’m getting a fair deal when purchasing a new or used auto? The standard industry calculation for determining a fair price on a new auto is: Invoice price + upgrade options + destination charges – manufacturer rebates/incentives X 5% dealer profit. When financing a pre-owned auto, make sure to shop around without making an immediate commitment to the auto dealer. Research the retail/trade value and then go to the dealer and offer somewhere between the current retail and trade value.
