 Car Financing Scams: When To Walk
Posted by carsandtrucks on Monday, February 04 @ 08:14:34 PST
I have been hearing horror stories lately from people that are buying a new or used car or truck thinking they are getting one payment to learn later the payment changed. Here is how it happens. You visit a dealer and settle on a vehicle. The in house finance manager quotes you a monthly payment based on the amount, length and the finance rate of the loan. You agree to the numbers feeling it is a payment you can handle. You leave the dealership with your new vehicle thinking
the deal is final. A week or so later the dealership calls you and tells you, “Sorry we couldn’t find a bank to give us the rate we quoted due to your credit score. You will have to return the vehicle or accept a higher interest rate which will increase the amount of your payment.” Not wanting to embarrass yourself with friends and family by returning the vehicle and admitting that your credit score is less then stellar, you accept the new terms. This should never happen. If a dealer says to you this payment is based on whether we can get this rate or not, walk away from the deal. The dealer knows before you leave the dealership what your credit score is and what interest rate you will qualify for. They also know that if they deliver the vehicle to you by “low balling” the payment, it is quite likely you will accept the higher payment if you have been driving the car or truck for a couple of weeks. You should do your homework before you visit the dealer. Never let the dealer know more about your credit score then you do. Your credit score is available by several on line web sites, or you can get it from a local lending institution such as a bank or credit union. When you go to the dealership prepared you are less likely to be taken advantage of. Unfortunately there are some in business that prey on people with credit issues. Homework will keep you from being a victim of this unscrupulous tactic.
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