CLF loans
CLF loan menu

AD: Debt Relief? Loan / A+ Rating wt Better Business Bureau

What is Special Financing? – Exactly

What is special financing you ask? It’s a fancy term for a car, truck, RV, or boat loan that is generally approved from a dealership. This is a term in the financing market that always means that it’s a dealer loan, with dealer rates and down payment restrictions. It’s could be called a high risk car loan, or bad credit auto loan, and the same lending stipulation come into play.

The loan carries a higher APR than a standard loan, and the borrow who wants the vehicle from the dealer will have to make a hefty down payment (sometimes more than 25% of the vehicle’s sticker price). The reason the dealer insists on such a large down payment is because they assume that borrowers with bad credit ratings, are higher risks, so they want to make sure your investment in your car is large enough that you don’t want to walk away.

Special financing for a car is just a glorified “poor credit loan” whereby the car, RV, truck, trailer, RV, or boat dealership takes advantage of your low FICO score to make more profit on the financing than they make just from selling their unit to you.

So when you think a dealership is doing you some kind of favor – think again. They’re profiting from your pain.