Join Date: Jan 2005
Location: ontario, canada
You can get GAP through most finance companies, insurance companies have it too. Everyone wants to eliminate a negative equity situation.
Go see an F&I manager at a dealership, be careful though, shopping credit hurts you too. You should get copies of Equifax and Trans Union, I think Americans get one free per year? Then take total monthly income, annual divided by 12. Add up all loans, credit cards, mortgage (remember for calculations, only half the monthly payment figures into the equation) - borrowed money. Divide that by the total before tax (gross) monthly income. If that number is 20-25% and the bureau shows no more than 2-3 R2's and none current and the credit score is 700 or above, you should qualify for prime financing, if not you should qualify for sub-prime. If your score is in the 600's, your TDSR is over 30% and the bureau is littered with R2 or worse, proceed to the closest buy-here, pay-here who reports to the bureau, they will charge you a lot. But they will get you into a car, go for the cheapest, crappiest thing you can find if your credit is that poor, pay well for a year and re-evaluate the situation.
Credit Unions typically lend better, Ford Credit lends well, leasing is oft a better option and easier approved because you never own the car until you pay the residual.
Take all your own papers, bureau etc., calculations for TDSR, do not let anyone pull a bureau until they have evaluated your situation.