Does Bad Credit=Higher Sticker Price?

TFord · 07-27-2009, 12:48 PM

Long story short, my parents dont have much money, and no credit. With the cash for clunkers they took in a Ford (cop car model) thats been a nonstop money pit since they've got it. Well the dealership first told them all they could get was a bare bones Chevy Aveo, It had a sticker 12,000. They they told them since their credit was bad they had to pay 15,000 dispite the large 12,000 sticker price. Of course they told me this after they signed the papers. Im just wondering if this is standard practice and looking for any advice I could send their way.

Thanks

Xanthos · 07-27-2009, 12:54 PM

I've never heard of anything like that. Sounds like the dealership just ripping your parents off.

I've heard of having to pay a higher down payment, or a higher interest rate, but from my experience in the credit market (with a score in the high 700's) a higher price would actually make it harder to get approved, not easier.
- X

BigRigMike · 07-27-2009, 12:55 PM

I have never heard of a dealership raising the price due to credit. Credit should only matter for the interest rate on the loan and total that can be financed. The clunkers bill is supposed to be in addition to the rebates that are currently available.

It sounds like they should be heading back to the dealership to get $3,000 back. Some states give you time to back out of a car deal.

Legend · 07-27-2009, 12:56 PM

Not higher sticker, higher insterest rates for sure though! The down payment thing would be based on your credit lending company too...

...you should never use the dealer for financing if you can help it. Get your own financing and walk in knowing what you can afford instead of the dealer "working out a payment" for you!

coolman · 07-27-2009, 01:01 PM

This is bs. The price of the car has nothing to due with credit. When I buy a car I aways get the price before I ever talk about how I'm going to pay. Bad credit could mean a higher rate for your loan or that you will now qualify at all.

TFord · 07-27-2009, 01:11 PM

Thats what I thought as well, thanks guys

SicSix6 · 07-27-2009, 01:40 PM

bad credit = higher interest rates.....

Vash · 07-27-2009, 02:36 PM

Get a Cobalt NOT an Aveo.. Night and day quality difference.. very little in price.

Speedy1975 · 07-27-2009, 03:14 PM

So your parents who have bad credit and little money signed papers on a Chevy Aveo at $3,000 OVER what the sticker had on it?

Chevyrocker · 07-27-2009, 03:29 PM

***From someone in the business...

Sometimes, a bank will charge a hefty VIG to finance a deal if a customer has bad or non-existent credit. A dealer can ask that the customer pay the vig to get the loan if there is not that enough profit in the deal to cover it.

Georgie · 07-27-2009, 03:58 PM

or work it into the rate as i understand it?

Vash · 07-27-2009, 04:00 PM

Also I hate to say this. But another option might be for them to go get a Ford.

Ford is known sometimes for taking people that got GMAC or the like rejected. The rate will probably be lousy but it might be an option.

HTWLSS · 07-27-2009, 04:14 PM

Do the configurator to see what is eligible.

http://www.gm.com/cash-for-clunkers/

InventoryGuy · 07-27-2009, 11:51 PM

probably a large bank fee. If someone has horrible credit then some of the sub-prime lenders charge rather large fees, if they will even pick up the deal. It is nothing to see over 2k bank fee for someone with a credit score of sub 550 if the lender will even do the deal.

If the parents are credit criminals they peobably just passed the bank fee on to them, which is understanable.

07-27-2009, 12:48 PM	#1
TFord Camaro Fanatic Drives: 2000 Z28 Join Date: May 2007 Location: Auburn, WA Posts: 1,808 View My Garage	Does Bad Credit=Higher Sticker Price? Long story short, my parents dont have much money, and no credit. With the cash for clunkers they took in a Ford (cop car model) thats been a nonstop money pit since they've got it. Well the dealership first told them all they could get was a bare bones Chevy Aveo, It had a sticker 12,000. They they told them since their credit was bad they had to pay 15,000 dispite the large 12,000 sticker price. Of course they told me this after they signed the papers. Im just wondering if this is standard practice and looking for any advice I could send their way. Thanks

07-27-2009, 12:54 PM	#2
Xanthos PWA Relapse Drives: Formerly-Stick Join Date: Mar 2008 Location: Oklahoma Posts: 12,588 View My Garage	I've never heard of anything like that. Sounds like the dealership just ripping your parents off. I've heard of having to pay a higher down payment, or a higher interest rate, but from my experience in the credit market (with a score in the high 700's) a higher price would actually make it harder to get approved, not easier. - X __________________ 2017 1LT/RS A8 Hyper Blue Metallic

07-27-2009, 01:40 PM	#7
SicSix6 The Demon Photographer Drives: 2010 1SS IOM Camaro Join Date: May 2009 Location: Bristow, VA Posts: 752 View My Garage	bad credit = higher interest rates..... __________________ 1SS IOM LS3, GM 4-pack guages, SLP SS Front Emblem, Roto-Fab CAI, Solo Performance Mach X Exhaust, Barton Industries Short Throw Shifter

07-27-2009, 03:58 PM	#11
Georgie Drives: Camaro... soon Join Date: Aug 2008 Location: Chicago Posts: 1,217	or work it into the rate as i understand it? __________________ 2011 IOM or CGM 1SS

07-27-2009, 04:14 PM	#13
HTWLSS Camaro Disciple Drives: Camaro, Chevelle, Corvette... Join Date: Jan 2007 Location: +45° 23' 30.0588", -122° 48' 7.3296" Posts: 658	Do the configurator to see what is eligible. http://www.gm.com/cash-for-clunkers/ __________________ How the Disciples help Chevrolet and Being a Camaro Disciple http://modernclassicsauto.com '68 Chevelle Malibu Coupe; '67 Chevelle Wagon; '99 Convertible Camaro SS #0069; '07 Z06; '06 Silverado Crew Cab 2500 4x4 dually; '14 Sonic RS Hatchback

07-27-2009, 12:55 PM	#3
BigRigMike Drives: 2010 Ford Fusion Join Date: Aug 2008 Location: York, PA Posts: 374 View My Garage	I have never heard of a dealership raising the price due to credit. Credit should only matter for the interest rate on the loan and total that can be financed. The clunkers bill is supposed to be in addition to the rebates that are currently available. It sounds like they should be heading back to the dealership to get $3,000 back. Some states give you time to back out of a car deal.

07-27-2009, 12:56 PM	#4
Legend Hello! Drives: 2008 JSB Z06! Join Date: Oct 2008 Location: Texas Posts: 2,624 View My Garage	Not higher sticker, higher insterest rates for sure though! The down payment thing would be based on your credit lending company too... ...you should never use the dealer for financing if you can help it. Get your own financing and walk in knowing what you can afford instead of the dealer "working out a payment" for you!

07-27-2009, 01:01 PM	#5
coolman Guest Join Date: Jun 2009 Location: PA Posts: 4,812	This is bs. The price of the car has nothing to due with credit. When I buy a car I aways get the price before I ever talk about how I'm going to pay. Bad credit could mean a higher rate for your loan or that you will now qualify at all.

07-27-2009, 01:11 PM	#6
TFord Camaro Fanatic Drives: 2000 Z28 Join Date: May 2007 Location: Auburn, WA Posts: 1,808 View My Garage	Thats what I thought as well, thanks guys

07-27-2009, 02:36 PM	#8
Vash Drives: 00 Blazer Join Date: Aug 2008 Location: Texas Posts: 5,100	Get a Cobalt NOT an Aveo.. Night and day quality difference.. very little in price.

07-27-2009, 03:14 PM	#9
Speedy1975 FASTER! Drives: Challenger Hellcat, 2SS Camaro Join Date: Apr 2008 Location: Middle Tennessee Posts: 2,244	So your parents who have bad credit and little money signed papers on a Chevy Aveo at $3,000 OVER what the sticker had on it?

07-27-2009, 03:29 PM	#10
Chevyrocker Weekend Rockstar Drives: Depends on the day... Join Date: Mar 2008 Location: West Palm Beach Posts: 1,442	***From someone in the business... Sometimes, a bank will charge a hefty VIG to finance a deal if a customer has bad or non-existent credit. A dealer can ask that the customer pay the vig to get the loan if there is not that enough profit in the deal to cover it.

07-27-2009, 04:00 PM	#12
Vash Drives: 00 Blazer Join Date: Aug 2008 Location: Texas Posts: 5,100	Also I hate to say this. But another option might be for them to go get a Ford. Ford is known sometimes for taking people that got GMAC or the like rejected. The rate will probably be lousy but it might be an option.

07-27-2009, 11:51 PM	#14
InventoryGuy Drives: Tundra Join Date: Sep 2008 Location: Dallas Posts: 46	probably a large bank fee. If someone has horrible credit then some of the sub-prime lenders charge rather large fees, if they will even pick up the deal. It is nothing to see over 2k bank fee for someone with a credit score of sub 550 if the lender will even do the deal. If the parents are credit criminals they peobably just passed the bank fee on to them, which is understanable.

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