Avoiding higher fees when getting a new car
When it comes to business, some businessmen forget the importance of practicing ethics. Instead all they focus upon is giving the customer worst deals and get themselves more money. We can not blame though as maybe they have reasons for doing so. But no matter the case, it is no excuse to cheat the customer out of something. Here some scams that the dealer may try to pull a fast one on you. Try learning more about them by reading it here and avoiding the situation.
One of the oldest scams performed by car dealers is the forced warranty scam. When you get the financing from the dealership they may tell you that you need to pay an additional fee for warranty or the bank won’t give you the loan. Some won’t even tell you about the warranty and juts make it look like it’s a fee that will help lower your APR.
To avoid this scam, try to avoid financing at the dealer and instead finance online. They won’t force you to have a warranty when you finance it anywhere else aside from the car dealership itself. Another way to avoid this scam is by telling the dealer to put the “warranty is needed for my loan to be approved” in writing. This is important so that you’ll tell him that you’ll show this to your State Attorney for its validity. They will immediately back of once threatened in such a way.
Another scam to avoid is the dealer preparation scam or just plain excessive charge. This is not really a scam or is it illegal that’s why most dealers even state this on their paperwork. They claim that this fee is only a way to cover up fore their losses when discounting the car of MSRP. Even though, what they charge is till too excessive. The dealer preparation fee should already be covered by the factory for this pre delivery service.
To avoid this situation when the dealer preparation fee has already been put in your buyer’s card, have it balanced out by heaving them put a negative credit on your card. If they won’t remove it, simply go to another dealer. It’s simply a matter of who has the stronger will. If they really won’t budge, it’s their loss. Go to the next dealer on your list and tell him or her that they might get the deal if there is no dealer’s preparation fee.
Always remember to shop wisely when choosing for a car. It will always be their loss if they don’t figure out your point of view. Instead of getting even a little bit of commission or sales, they’ll eventually end up empty because of their greediness.
[Tags]Car Loan, Mortgage, Credit, Money Lending, Borrow Money, Car Mortgage, Car Payment, Budget, Buying a Car[/Tags]