Auto Fraud: Dealership Financing Scams
Car financing scam is a very important subject to pay attention to. As people fix on buying a car, they must make serious decisions when it comes to the selection of dealers irrespective of buying a new or used vehicle. Car dealers would seem honest but the buyers cannot take it for granted at any conditions. The borrowers must be informed of the various cases of auto fraud in order to safeguard their interests. Here are some of the valuable tips on how to avoid the auto dealership financing scams.
Financing scams are the most famous ones that gain the market. The borrowers apply for a loan and the lenders agree to the interest rates specified by them. On taking ownership of the car, they may get calls from the lenders informing that the loan is not approved and forcing the borrowers to pay higher rate of interest. The initial rate of interest would have been clearly explained in the agreement which would be termed as “subject to loan approval”. The lenders have all the rights to disqualify your loan application and may charge you extra $1000 as the finance charges and make you pay $50 extra per month. The borrowers can avoid making a deal if they are sure of having a bad credit.
Certain dealers involved in auto fraud will charge an extra $300 to $900 for the window VIN# etching saying that the bank officials demand this payment. Dealers might say that it is absolutely free and then add the same amount in the fee to cover it up. If anybody says it is free, it is highly recommended to get it in writing from the dealer. If they are not ready to do so, then the borrowers must be ready to etch the car itself.
Beware of the credit score scam which might make you lose huge amount of money. Almost all the lenders would undervalue your credit score in order to pull higher interest rates. The borrower should always take a copy of their credit report from equifax. It is tough for the lenders to deceive when the borrowers can have the proof of credit report.