The climate of the auto buying industry has changed considerably in the past couple of years. In the past you could walk into a dealership with a marginal to good credit score and drive out with a new or used car. Nowadays things are very different. With the current state of the economy it is much more difficult for car finance.

Dealers now need to focus on those people who have an excellent credit rating. There are dealers in some cases that will not give you a test drive until you have a rating check and are considered a good risk. The dealers will not negotiate on pricing anymore like they used to as well.

Dealer incentives have dwindled down to only factory to dealer incentives and that is all you can expect. This is for the reason that the dealer has had to bring down the price of the car to sell it. This new price is very close to invoice price. Little to no profit will be gained by the dealer who is selling it so you cannot negotiate.

If you do want a good deal then you might want to consider purchasing a car that is certified pre-owned. A lot of dealers will offer you this type of car. This is a vehicle that has been checked out by the dealer and a certified mechanic.

A warranty is offered for these vehicles. Another plus of buying one of these cars is that there is negotiating room in these vehicles. Dealers in general make a much higher profit off of a used car. The reason for this is simple.

But when they sell the car after detailing it they will sell it at the top blue book value. This difference is several thousands of dollars. You will be able to negotiate and still get a good deal. Perhaps this would be better for someone who has a lower score or just does not want to spend the money on a new car.

As stated above without a very good or excellent credit score it will be very difficult to finance the purchase. A large down payment may be required if you have borderline credit. What about that car that just doesn’t have any life left in it?

It used to be that you could call the local salvage yard and they would send a truck out for a few hundred dollars, pay the owner and haul their car away. These days the salvage yard may still send the truck out but the driver will have no money for you. They basically get a free car then sell the parts off of the car.

If you are going to buy mechanical parts you should not go to a junkyard but any other parts you will be able to find. This can help in keeping an older car running or for restoring a car. The economy is struggling and it has affected the car finance and negotiation markets. But now you can make informed decisions with what you want to do.

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