Loaded and packed loan payments are one of the oldest and most commonly used dealer tricks when a dealer “loads” your payment you are literally being ripped off. This scam happens when you ask the dealer how much the monthly payment will be on a certain automobile and the dealer will quote you either a slightly higher APR or loan amount. It might not be much but if the actual loan payment should be $325 a month and car dealers push it up to $365.00 that could end up costing you an additional $2300 on a typical 60-month car loan. Actually, this dealer fraud is very difficult to detect. However, if before going to a dealership you gather all of the information on the cars you’re interested in you will know what the payments should be.
On the other hand, if you agree to this packed loan payment without comment the dealer will try to increase the final price as much as he can. If you’re not well informed about the car buying process you will end up purchasing high price items such as extended warranties, undercoating, and clear coat paint layers. If you’re not careful enough you’ll end up paying extra for items added to the car at the factory!