How can we offer down payments so low?

Lot of people wonder how we can do such low down payments and if you get a lower quality car because of it. We absorb the upfront cost of selling the vehicle and the vehicles are of high quality regardless of down payment.


1) How can you offer such low down payments?

-Because we do our own financing is the main reason. We have been in business for a long time and we can absorb the upfront cost of selling the vehicle and make it up with the payments since we do our own financing.

We always lose money whenwe sell the vehicle with a low down since the tax and title and paying the salesman cost more than the down payment. We offer the low downs because we know many people don't have a ton of savings but need a vehicle and it's just one of our things we have always been known for and being able to absorb the up front cost allows us to offer a lower down.


2) Why do you offer such low downs?

-Because we know people don't have much savings. You can put more down as well. There is nothing stating you have to do the low down. 15 years ago our average down payment was over $1000 and now it's more around $500. People don't have as much to put down anymore and competition is tight so we have lowered the down payments over time to stay competitive and to work with peoples budgets that need a vehicle but don't have that much to put down.


3) Are the vehicle lower quality

-Absolutely NOT. In fact they are better quality today then they were 10 years ago when we were getting more down. The vehicles are nicer and have lower mileage. We even have almost brand new vehicles for less than $500 down. We spend about triple what most dealers do on reconditioning meaning when we buy them from auction we check the brakes, tires, etc. so we are putting out a good product.

Just because it is a low down it has nothing to do with quality. It usually has more to do with price and popularity. The more expensive vehicles and more popular vehicles will be more around that $600 to $1000 range where some of the lower price vehicles we can offer lower down payments since the payments will be cheaper on them but it has nothing to do with quality.


4) Are the down payments set?

-Not really. More of a suggestion. We can work with it depending on your budget and application. If we are asking $800 down and you have $500 we can usually work with that. The down payments for $199 to $399 though they are already pretty low so normally like to get that or within a hundred dollars. Itall depends on the deal and vehicle.


5) What is wrong with the $199 and $399 down vehicles?

-Nothing at all. They are normally $399 to $599 down but we just run specials at times and the lower down vehicles are usually the less expensive vehicles on the lot. So for example vehicles around $8995 to $12995 usually have down payment between $199 and $399 and the $13995 to $14995 vehicles have down payments from $399 to $799 down.


6) Do you need to qualify for the lower down?

-If you are approved then you are approved and whatever downwe are asking is what you put down. Like I said as well if you are approved and don't have the full down we are asking we can normally work with you on that as well.

Now if we cannot get you approved we may ask for more down or a co-signer. So if the application is higher risk or don't have the income ratios then a larger down like $1000 to $1500 helps it go through which is still a low down for a vehicle but not as low as if you were approved. Another option if your app is higher risk and we cannot get you approved with the low down is to get a co-signer. Having that extra person responsible for the loan reduces the risk and having that extra income reduces the risk also. That way you can keep the low down if you get a co-signer that qualifies.