Tag Archives: monthly payment

There is nothing worse than falling for a car sales scam and letting the dealer to rob your hard earned money.  You can avoid car sales scams if you enter the car dealership prepared. In this blog we will share 5 quick tips with you that you must know to avoid getting taken by a fraudulent car salesman. Know your limit. Before entering the dealership know exactly how much you can afford to pay.  The car salesman’s job is to sell you a car and make a profit and they will always try to persuade you to spend more.  If you know your spending limit you will not leave …

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You did everything you were supposed to do. You put your best deal on the table and they accepted it. Now you move to the Finance Office. You think all you need to do is to sign the paperwork and drive home. Not so fast. The Finance office is the biggest profit center in the car dealership. That nice person behind the computer is a fraudulent salesperson. Reviewing the deal and seeing where he can squeeze more profit out of you is his job. Do not be in a hurry to sign and get out or you will be very sorry. A good finance salesperson will cheat you for …

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Dishonest car dealers might fiddle with your financing as a way to jack up their profits. The most popular way of this car scam involves calling back car buyers into the dealership a week or so after purchasing a car. Once you’re back, the car dealer tries to renegotiate the interest rate based on whether you buy extra services, accessories or warranties. They might also try to focus on the amount of the monthly payment to divert attention from the fact that the total amount being financed has gone up. Another variation of this scam involves dealers letting you drive off the lot without finalizing the loan papers, promising …

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In our previous blogs we have already presented some tricky questions that may lead to dealer fraud. Below are three more questions and the most preferable ways of answering them in order to avoid becoming a dealer fraud victim. 1. “What were you hoping to get for your trade?” This may be an honest question, but why tell the price first? If you say you want $10,000 and the car is really worth $12,000, you’ll give the dealer a $2,000 present. It’s essential to have a realistic idea of what your trade-in is worth and let the dealer throw out the first number. Don’t get confused in case he/she …

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Car dealers usually ask key questions for diverting your attention and maximizing their profit. Knowing these questions and refusing to take the bait will help you stay in control of the negotiations and get the best deal. Below are some of these tricky questions and the best ways of answering them and thus avoiding various dealer tricks. 1. “What kind of monthly payment are you looking for?” In some cases, this question doesn’t presuppose any upcoming vehicle scam. If you’re looking to buy a $50,000 car on a budget of $300 per month with a $1,000 down payment and no trade-in, the dealer will know right away that you’re …

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Leasing a car may not be in your best interest; however, auto dealers don’t want you to know that. They often employ tricky maneuvers to tempt you to lease rather than purchase. It’s essential to educate yourself on all the ins and outs of leasing so that you can evaluate and make your own decision without “assistance” from the dealer. Below we discuss most frequent scams used by auto dealers. Any one of these could cost you a lot of money. Imagine how bad it could be if a dishonest dealer combined more than one of these leasing scams! 1. The dealer offers to take your current car as …

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One of the things that most customers do not notice is that salesperson at the dealership continues negotiating till the contract is signed. Remember that even if you have clarified all the terms and shaken hands on the deal, the final contract presented to you for signing may be different from what you have agreed. Look thoroughly and you may find out that the terms in the contract are different than those you agreed upon during the long period of negotiations. Many customers are often mistaken by thinking that the Finance and Insurance (F&I) Department of the dealerships deals with the paperwork only. This is not true. First the …

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During the car negotiations of the car deal customers get to know a number of terms, such as purchase price, options, down payment, trade-in credit, monthly payment, interest rate, loan term, and balloon payment. All these elements of a car deal lead to confusion or fraud. It is difficult for the customer to focus on all of the terms mentioned by the car dealer. If the customer focuses on one of the terms he will probably miss all the others and car dealers know this. Distraction is an art that many car salesmen study diligently. For example, many people have become a victim of dealer fraud by focusing on …

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There are several important things you should do before you enter a dealership and start shopping for a new car. One of the most important things to do is determine your budget. Come up with a maximum monthly payment allowance, and a maximum down payment that you will not go over. When you know exactly how much you can afford to pay for a vehicle you will look only at vehicles that are in your budget. Think ahead! You may be financing for 3-4 years and you probably don’t want not be able to pay other bills because of your car payments. Also consider your trade-in. If you still …

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A lot of people get confused or excited when they see a car dealer advertise a $99 a month payment. Sometimes the dollar amount changes, dealers will use a $47 a month payment or some other low number. In fact if a car dealer advertises in this manner they should avoid doing business with them. The reason car dealers use this advertising method is because so many people are fixated on what their monthly payment ends up being and they never understand how that number was generated. You must understand how a car dealer arrives at your monthly payment to determine whether your $385 monthly payment is a good …

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