Family Issues

There was this one episode on a lousy sitcom that was about getting a new car. When the buyer went to the car dealership, he clearly stated that his offer for the car was this much. It turns out he spoke to early, as the offer of the dealership was cheaper than his offer. Naturally he got a bad deal on his car and the dealer didn’t have to pull of one lying scam.

If you are this kind of guy, which really don’t have a clue about dealing with or getting car loans. Here are some scams that you should clearly avoid.

Don’t be fooled into believing ads that say they’ll pay your loan or lease no matter how you still owe. This is one neat scam that these dealers perform. They’ll try to convince you to sell your car at a lower price and sell you a new car at higher market value. Don’t fall for this because all lease and contracts are binding and you cannot immediately get away from it even though the car has been sold. They will get you out of your current lease but when you get the new car, the lease will just be added on.

Here’s how it works. If you still owe ten thousand dollars on your previous car, the dealer will say he will pay it off. But then since all contracts such as lease or payables are binding. You will now owe the dealer who presented himself that he paid of your current lease. He will then pass this cost on to you when acquiring the financing of your new car which only cost fifteen thousand really. It will now become twenty five thousand dollars. The amount you pay will seem smaller monthly because the dealer will divide it unto sixty or seventy two monthly payments.

It’s really a clever and amazing tricks that if you’re a reader, you’ll be amazed, but to the victims this magic trick made their money vanish.

Another one of the tricks that these dealers pull out of their box is the forced credit application scam. You’re with the dealer with your bank draft from a major car financing company or you do not want to fiancé your car. However these dealers are persistent in showing you their last effort magic trick. Don’t be fooled into believing this magic trick of theirs.

It will usually go in this way so that they’ll be able convince you to still sign for a credit application. It’s their company’s policy, state law requires it and or everyone who buys in this dealership must get one. Nobody knows why some dealers try to do this stuff. Based on research, the only effect is that your credit report rating will go down 5 points every time other than you will check it.

If they really try to fool you with their magic trick, get up and leave. Serious buyers will not entertain dealers who seem to have ulterior motives. Tell him that the only magic trick you are interested is getting the car as cheapest as can be. It will be their loss once you leave and it will be thanks to their stupidity not yours.

Tags: Car Loan, Buying a Car, Money Lending, Car Payment, Budget