You purchase a new vehicle from a car dealer and arrange a finance package with a low APR. You drive away with your vehicle and a few weeks later you receive a call from the dealership that explains that they have received word from the finance company and they have declined the low APR you requested which was subject to finance or loan approval in your contract. The truth is that when you supply your financial information to the dealer he/she is able to determine exactly what APR you are eligible for depending on your income, so if you don’t misrepresent your income they should know immediately what your credit score is and what you are able to receive.
To avoid this auto scam find out what your credit score is and what APR you are eligible for to know if you are being told the truth from the start. Leave a deposit and don’t accept delivery of the car until the loan has been approved in written form; this should only take a few days. Don’t take the car that day even if they say it’s ok.
The other option is much safer – don’t finance your car at a dealership especially if you have bad credit. With a well known financial company you will be able to avoid payment scams as well.
If you have already been scammed, there are still a few things that you can do. First of all see if you can get finance from an alternate source, such as an online finance company. You may also try to talk to the dealer and get out of the deal. If all else fails try turning to an experienced dealer fraud attorney for valuable advice and help.
