Car Financing – Beware of Car Dealer Tricks
Car financing is a common incident; yet it does not mean that you can take it carelessly. You need to be aware of the different financing choices that exist. A little investigation may help you to obtain a superior financing deal.
Be wary of someone who tries to convince you that financing a car is a better deal than paying cash for it. It is not excluded that the premiums could possibly be reasonable, collectively by taking out a loan and paying interest, you will be paying much more for the vehicle than you would if you were to pay cash for it. The only method that financing could be less expensive than paying cash is if you can put the cash to work for you and earn more on that money than the interest that you would have to pay for the loan.
Some car dealers will try to prove to you that financing is cheaper. In reality, they might offer you some software program that misrepresents the “benefits” of financing versus paying cash for a vehicle. The programmed cost evaluation that they present to you comes out to “demonstrate” that you can save money by financing at one interest rate and investing the cash not spent in a certificate of deposit (CD) at a financial institution at a lower rate. The only real way you could end up ahead in this situation would be by borrowing at a lower interest rate and investing the money at a higher interest rate. It is improbable that you will be able to find such an arrangement.
Car financing is something more serious than you take it. Be sure you are not being taken advantage of. Search for loans by yourself. Ask your bank or credit union. Check internet sites. Ask the automobile dealership. Assess rates and terms from several loan companies.
If you have any further concerns on this topic, feel free to contact car dealer fraud attorney Hovanes Margarian.