Refinance Your Conract
Did the dealer tell you that the dealership would “refinance” a contract after a certain period of time, and lower your payments? While most dealerships clearly explain the APR involved in a contract, there have always been some dishonest salespeople in the industry that will make customers believe that the APR on the contract will go down in the future. When the customer asks the dealer about the APR they use a dealer trick by telling them that the interest rate is only temporary. They promise customers that the dealership will “refinance” the customer after a certain period of time if the customer makes payments on time.
However, the truth is most dealerships do not have the ability to refinance a contract since the contract is assigned to an independent finance company. Unless the consumer takes the initiative and obtains refinancing on his/her own, the APR on the contract will most likely be the APR that the customer will have for the life of the loan. If the salesperson tries to use this dealer tactic the there are chances you are being scammed. Contact the Department of Consumer Affairs or a dealer fraud attorney.