Consumer Car Buying Advice Blog

Here at Auto Credit Express, we are often asked if a rebate will help with a bad credit car loan. The answer is a resounding “yes”…

Rebates and bad credit car loans

A rebate with a bad credit car loan works pretty much the same as a rebate with a regular loan. As long as the rebate is entered below the selling price as a down payment. Customer cash works in the same way and since it is “cash”, it is always entered on the down payment line. Some bad credit lenders will still want some actual cash from the customer, while many of them will accept the entire amount as the customer down payment.

An example: the 2007 Kia Rondo

A good example of the difference dealer cash makes is the 2007 Kia Rondo. There still are some 2007’s available and to move them off dealer lots, Kia is putting $2,000 customer cash on the Rondo. In addition, if you are currently driving one of 40 vehicles considered a “competitor”, Kia will up the ante by another $1500. But wait, there’s more. Kia is giving dealers another $500 to move 2007 Rondos off the lot. So, what does this mean for you?

Let’s price out a 2007 Rondo. The 2007 LX model with the V-6 engine and automatic transmission also includes 4 wheel disc brakes with ABS, Electronic Stability Control, power windows, locks and all the air bags. The MSRP is $18,895 and dealer invoice is $17,795. If you subtract the dealer cash, the selling price is $17,295 (remember, dealer cash is subtracted from the selling price, not treated as a down payment). With tax and fees (estimated), we’re looking at $18,700 or so. Now, subtract the $2,000 in customer cash, plus you currently own a Chevrolet Cavalier or a Dodge Neon so you can subtract the $1,500 competitive cash for an amount to finance of $15,200.

The Bottom Line

Rebates and customer cash are a great way to not only make a vehicle more affordable, but also contribute towards your down payment. In the case of the Rondo, you can buy a vehicle with a retail delivered price of over $20,000 for just over $15,000. The Rondo also comes with a great warranty – 5 years/60,000 miles for the basic warranty and 10 years/100,000 miles on the powertrain.

For more information on bad credit auto loans, visit our web site at www.autocreditexpress.com. In addition to researching bad credit auto loans, you can also fill our secure application in the comfort of your home. Remember, here at Auto Credit Express, we want you “on the road” to better credit.

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