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.