Car Dealer Loan Scams
Car buyers who have poor credit don’t have a lot of options when they are shopping for a car. In fact, their only choice for finding a lender for their new car purchase is through a car dealer loan.
Car dealer loans are not as bad as a lot of people think, but they hide a lot of surprises. This is why car buyers need to be very careful when planning to use a Car Credit Loan not to fall a victim to car loan scams.
First of all make sure that the interest rate is fixed and is clearly stated in the final contract. Also check that it is written in a way that it wouldn’t allow the car dealership to change it at a later date. It is a common practice for car dealers to improve your car loan application, have you sign the documents, and hand you over the car. However, later they may call and inform you that you don’t qualify for the loan because you have poor credit. The dealer will tell you that you must pay higher interest rates in order to keep the car. If you are in a situation like this find a loan from another lender or report the scam.
Another very popular example of car loan scams is to make you look for a cosigner for your loan. The dealer will convince, that this is the only way to get financing since you have a terrible credit history. However, later you will find that your name isn’t including in the loan documents and that the loan is in the name of the cosigner, even though you are paying it. This is illegal. If your car dealer offers such a thing simply refuse to sign the deal.