Car Dealer Scams and How to Avoid Them
Saturday, November 20th, 2010Car Dealer Scams and How to Avoid Them
When you are looking to buy a car with bad or poor credit it doesn’t leave buyers with lots of options. Occasionally their only choice for finding a lender for their new car purchase is through a car dealer loan.
Car dealership loan deals are not as bad as a lot of people may think. However, it is certainly true that they may hide a lot of surprises so if you are in fact planning to use a Car Credit Loan you should be extra vigilant.
The first thing that you need to watch out for is if the interest rate happens to be fixed. By fixed I mean that it’s clearly stated in your contract and that all of it is written in a way that it wouldn’t allow the car dealership to change it at a later date. What lots of car dealerships tend to do is approve your car loan application, have you sign the documents, and hand you over the car. After that later on they just give you a phone call and state that in fact you do not qualify for the loan because you have poor credit (which is something you already knew to begin with) and that you must pay higher interest rates in order to keep the car. If you fall into this situation you should try to either find a loan from another lender or report the scam and fight back.
Another extremely popular scam done by car dealers is to make you look for a cosigner for your loan convincing you that this is the absolutely only way that you can get financing since you
Buying a new car is one of the largest purchases most people make in their lives. Therefore, it is worth taking care and making sure the deal you get is the best possible.