Who to Trust with Car Loans?
Some people don’t care in helping out and would only care as to get more money from them. When in a bad financial situation and suddenly your car goes bonkers on you. You will eventually end up trying to rush the deal to get a new car. The result will be further disastrous. First you won’t be able to get the best value for you are and since you are rushing, you won’t be able to prepare to get the best deals. Aside from that, if you have bad credit ratings, there are some scams that you might fall into. This is called the “yo-yo” scam.
One scam that is usually pulled by greedy dealers is the “yo-yo” scam. This scam is usually pulled on people with bad credit rating. They let the buyer trade in his used car and let him drive of the new car because he tells the buyer he’s or she’s got a good credit rating and she’ll be given a good APR. Weeks come and they come calling you back and they say that the APR that you qualified for was not right and the APR you’ll have will now be higher than the budget you planned for.
So don’t fall for those contracts with the dealer that says subject to financing or subject to loan approval. This only means that the deal is not final even though you signed for the contract. Before they give you the APR deal, they already know your credit rating, so they will make you believe that you have a good credit rating and have a good APR, but then weeks later they’ll tell you your credit ratings bad and the APR becomes higher.
This scam is simple to avoid. Avoid getting financing deals with the dealer if you have a bad credit rating, instead try to arrange your own financing and see what the two of you can work out. The deal will be conducted on how it’s supposed to be based on the selling price and not the monthly payments. It will also help you out in avoiding monthly payment scams.
If you do decide however to take the financing of the dealer, don’t let them tempt you into driving off with the car. Also leave some deposit on your credit card.
Hope that people who have bad credit and are interested in buying a car, don’t fall in the temptations of the tricky car dealers. It like they say enjoy the car now and pay big later.
[Tags]Car Loan, Mortgage, Credit, Money Lending, Borrow Money, Car Mortgage, Car Payment, Budget, Buying a Car[/Tags]