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    Down payments..

    Maybe I've read the treads wrong but for those that applied to & were approved at finance companies & credited unions. Why did you need a down payment if the car you wanted was less than the amount the companies approved you for?

    #2
    Even though you are "approved" for a certain amount, the "Deal" must satisfy certain loan to value ratios. Also, from a practical standpoint, you never want to buy a car with zero down, at a bare minimum you should pay for the costs (tax, title, etc) and not finance that into the deal. Also, if you put money down, you can sometimes get a better interest rate.

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      #3
      I should have added, let's say you got approved for 20K but the car you want is only 18K. Can't you use the rest for the down payment, taxes tags etc?

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        #4
        No it doesn't work that way. Even though you are approved the bank will only finance so much of the Blue Book value of the vehicle. So if your approved for $20K and buy a car for $18 K that books at $18K the bank will usually go 80 or 90% leaving you with a down payment of tax, title and license and/or the other 10%.
        4/09 Converted to a Ch 7 due to loss in dh's income
        5/09 UST now involved no idea what happens next
        7/09 UST has decided to withdraw his motion to dismiss!
        7/27/09 DISCHARGED!!!

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