Payment Packing. How to Avoid It?
Payment packing is one of the most common of the car buying scams.
It is the act of presenting much more inflated monthly car loan payments to customers during negotiations.
This act actually becomes illegal once:
- A credit report has been obtained
- The sale price has been disclosed
- The term of the loan has been disclosed
- The finance rate has been disclosed.
How to avoid payment packing?
All the tricky games may easily be avoided by asking them to:
- Disclose the sale price
- Disclose the total amount financed
- Disclose the term
- Disclose the estimated finance rate
By having car dealers disclose all of this upfront, they have to give you an accurate payment or they risk a visit from the Department of Motor Vehicles or the Attorney Generals Office.
An even easier way to avoid becoming a payment packing scam victim is to arrange your own auto loan. By arranging your own financing you’ll not have to negotiate payments at all, because you’ll essentially be paying cash.