Edmunds Answers

Voted Best Answer

  • avatar boomchek 04/27/10 8:26 pm PST

    Getting cash back on a loan is possible but depends on many factors. If you missed a few payments on your house, and it shows on your credit report, then chances are your score is low and getting a loan might be more difficult or you may be approved for a small amount only. If your credit is horrible then forget about a car loan altogether, let alone any cash back.

    Cash back would depend on the price of the vehicle and amount financed. Say you get a $40k truck that has $5k of rebates on it. You can tke the $5k off the price and finance only $35k or you can finance the $40k and take $5k cash with you.

    On a less expensive car and with bad credit you might be able to get $1000 or maybe only $500 cash back if anything at all.

    I would not recommend this because your payments end up being higher and you end up financing that cash back over the term of the loan. It's not free money, and you should in fact care about your interest rate.

    If you're short on cash, and you ran into this siutation before, maybe you should rethink buying a new car, and find alternative means of getting around, or buying something reliable but used without needing to finance. And then rethink your financial habits so that you won't need ot finance a car just to get some much needed cash.

    Good luck!

Answers

  • boomchek 04/27/10 8:26 pm PST

    Getting cash back on a loan is possible but depends on many factors. If you missed a few payments on your house, and it shows on your credit report, then chances are your score is low and getting a loan might be more difficult or you may be approved for a small amount only. If your credit is horrible then forget about a car loan altogether, let alone any cash back.

    Cash back would depend on the price of the vehicle and amount financed. Say you get a $40k truck that has $5k of rebates on it. You can tke the $5k off the price and finance only $35k or you can finance the $40k and take $5k cash with you.

    On a less expensive car and with bad credit you might be able to get $1000 or maybe only $500 cash back if anything at all.

    I would not recommend this because your payments end up being higher and you end up financing that cash back over the term of the loan. It's not free money, and you should in fact care about your interest rate.

    If you're short on cash, and you ran into this siutation before, maybe you should rethink buying a new car, and find alternative means of getting around, or buying something reliable but used without needing to finance. And then rethink your financial habits so that you won't need ot finance a car just to get some much needed cash.

    Good luck!

  • texases 04/27/10 8:58 pm PST

    You may not want to hear this, but you asked - it sounds like you're pushing your credit as hard as you can, and any bump in the road will put you in the ditch. If you can't afford a new car, then don't get one. And you can't, if you're considering skipping house payments to buy it. Whey you say 'I don't really care what the interest rate is' you are asking for TROUBLE.

  • morin2 04/27/10 11:01 pm PST

    You should always care about the interest rate. The rate and the length of the loan are what matter. If you are short of cash, don't even consider a new car. Buy a used one for cash only and maintain it yourself. Missing house payments means a bank won't take a chance on you. Put yourself in their shoes. You really need to focus on keeping up with house payments more than the status of a new car.

ADVERTISEMENT

Top Buying & Selling Experts View More

Rank Leader Points
1. Stever@Edmunds 34205
2. MrShift@Edmunds 26500
3. morin2 18215
4. texases 15075
5. karjunkie 14505
6. knowledgepower 14430
7. zaken1 7140
ADVERTISEMENT