Avoid Car Dealer Scams
When you are looking to buy a car with bad or poor credit it doesn’t leave buyers with lots of options. Their only choice in order to find 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 to avoid car dealer scams 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. Lots of car dealerships want to approve the loan application of your car, have you sign the documents, and hand you over the car. After that, 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.
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 have a terrible credit history is another extremely popular scams practiced by car dealers. It won’t be difficult to convince you at all. Later on, you will find out that your name is not included in the loan documents and that the loan is in the name of the cosigner only even though you are paying it. Not only is this illegal but may also lead to serious penalties but it’s not helping your poor credit at all. If a dealership offers this you must absolutely refuse this.
If you have difficulties in finding a good loan, it’s pretty obvious that you shouldn’t overstretch yourself. What this means is to buy a vehicle that is reasonably priced and not to buy into all of the extras like the extended warranties for example. Many Bad Credit Auto Loans will end up trying to trick you by making you believe that you must buy a warranty that will increase your loan just to qualify.
Car dealer scams are many, but you can avoid them with right preparation and research.