When you buy a car with a bad credit, that is not leaving car buyers with a lot of options. In most cases they have only one choice for finding finance for their new purchase; that is a car dealer loan.
Car dealer loan deals are not that bad as many people think. In any case, they may hide a lot of surprises so if you are planning to use a car dealer loan you should be extra careful.
The first and the most important thing to watch out for is if the interest rate is fixed. By fixed we mean clearly stated in your contract and that all is written in a way that wouldn’t allow the car dealer to change it later.
The thing that many car dealers do, is to approve your car loan application, make you sign the documents and give you the car. Later they just give you a call to say that in fact you do not qualify for this loan because you are with a bad credit (which you already know anyway) and that you will have to pay higher interest rates. If you fall into this situation you should either try to look for a financing from another place or report this scam and fight back.
Besides that, a very popular scam applied by car dealers is to make you find a co-signer for your loan dumming you that this is the only way to get finance since you have a horrible credit history. It won’t be a problem to convince you first of all it sounds reasonable and second of all the car dealer will make you believe that this will in fact repair your bad credit.
Next, you will find out that your name is not included in the loan documents and that the loan in the name of the co-signer although you are repaying it. In fact, that’s not only illegal and may lead to serious penalties but it is not helping your bad credit at all. If you are offered such thing by a car dealer you must refuse immediately.
If you are a bad credit customer and have difficulties finding a loan, it is quite obvious that you should not overstretch. This means to buy a reasonably priced car and not to buy any extras such as extended warranty. Nevertheless, many of the car dealers will try to trick you by making you believe you must buy a warranty that will increase your loan in order to qualify, since you are furious in getting the car you would say OK. However if you think for a second you will easily see that this is simple trick to increase your loan.
OFFICE ADDRESS
The Law Offices of Hovanes Margarian
13425 Ventura Blvd.
Suite 303
Sherman Oaks
CA 91423
818.990.0418
I need help fighting a a car dealer by the name of esco motors in lodi nj they told me that i was aproved for a car loan and let me think that the car was mine for 3 weeks the next week would of been the first car payment. In the mix 2 weeks of having the car they told me that they switch finace co. to change it with my insurance co. so I did I asked them to give me contract with APR% and I need to know how much I was borrowing against they would not give it to me they told me that they have to coach me on what to say to the bank when they call me for a interview to go along with what they say on feb 28th when I got the car they told me that since I had bad credit I had to put down $6,000 so I did thinking this is what I had to do when the 2nd so called finance co called which was Westlake Fin the lady saked me did the car have running boards and gps system in it I told them no becouse it didnt she asked me did I give them $7200 I told her no when they called me in to witch fin they tried to get $1500 more from me I told them I could not do that so anyway the lady from westlake say well at least is the car black I said yes she asked me for my address I told her I asked her what was the APR% and how much was Iam borrowing aginst she said didnt they tell me all this I said no andrew pollack did not go over with me he said It dont go like that these are bank owned cars and they dont work like that after this I didnt want to deal with them on march 14th they called me to bring the car back they was mad because I didnt lie to them GeorgeP and his mang told me didnt I tell you that you had to go along with what they say I told them to give me my money back they are giving me a hard time giving it back march 16th I spoke to jimmy he’s the so called mang he keep playing with my money saying I can’t get itback then he tell me to speek to andrew pollack to get my money back , I speek to andrew he tell me to speek to jimmy now I keep on jimmy now he tell me and he give me a copy of a check request form for someone name john pangia now I call for him and here goes the run around again he’s not here or he’s on the phone, or he just step out now they saying they want to keep $500 to $800 of my money for using the car I dont think so they gave me the lexus RX300 leading me to belive that I was approved for the loan they called me back 3 weeks of having the car I didnt get the because of they misleading info now I find out that the 1st fin co witch they said had fin me is chase fin is just what they tell people to get the insurance going so they can leave off the lot I seen a script on the desk of all the workers.It seem to be a scam this is not the first time they done this and its beeb with sinle females looking for a car on they own please help me get my money back and expose esco motors for what they are I also have a saved mesg from them telling me why I have to bring the lexus back I also forgot to men that afther 1 week of having the lexus I told them that something is wrong with the car george p told me that he will get the man carlos to call me to fix it thats was a lie then they said just wait untill the plates come back then they will fix it
Dear Keyla, sounds like you have some claims but unfortunately I am not licensed in NJ. I recommend you do a local search for a dealer fraud attorney or at least a fraud attorney. Best of luck.
- Hovanes Margarian, ESQ.
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