Car Loan Refinance – How to Avoid Dealer Scams?
Often refinancing your car loan may reduce your rates and payments. However, you may become a victim of car dealer scams that can cost you a lot of money. You can prevent any kind of dealer fraud f you do your own research and work directly with the lender.
Do Your Own Auto Loan Research
It would be a good idea to start researching car loan rates and terms online. Here you can find multiple quotes and will be able to compare. Online sources will list the APR, which includes both rates and fees.
Here you will be available to choose a short or extended term loan. It’s better to get a short term car loan to keep your interest payments to a minimum. However, an extended term will lower your payments.
Doing your own research, you take charge of your financial situation. You know exactly what kind of deal you can get, and you don’t have to rely on false promises from a dealer. This way you will be able to avoid car dealer scams.
Question the Terms of the Vehicle Loan
Never sign any paperwork, without reading the details of the contract. Remember, that you should never sign over title to your car. Also never sign any blank documents.
By taking the preventative step of researching lenders, you will save yourself from several headaches. You can also scope out the best refinancing deals and start saving money on your car payments.