The "Financing Fell Through" Scam
This scam is used
primarily on those with bad credit. After you have had the car a couple days
thinking everything is ok, all of a sudden you get a call from the dealer saying
that your financing fell through...but he can get it "fixed" for say... $1000,
BUT you're payment is probably going to go up a bit too. It's a load of
garbage...they would NEVER let their car leave the lot without the financing
being finalized. To avoid this scam, it is best to get your financing done
BEFORE you even step onto the car lot. Have some financing set up, and make the
dealer COMPETE to get the financing!
The "Warranty and Life
Insurance" Scam
Some dealers will tell
you that the lender "requires" that you purchase an extended warranty
and/or credit life insurance from the dealer before they can finance you. Again,
this is a load of bunk...if the lender is "worried" about you not being able to
repay your loan, why would they want to increase the amount you owe and raise
your payments? These items can also be purchased online, at a much better price
than what the dealer will probably offer you. I recently just bought a used car,
and my credit isn't the best either, and my lender actually required that
I did NOT buy an extended warranty from the dealer and add it
to my loan with them!
The "We'll Pay Off
Your Current Loan" Scam
If you think your local
car dealer is beoing a great guy by "paying off your car, no matter how much you
owe," think again...basically all they are doing is added the old car's balance
to the new car's loan...and extending the term of your loan. Always pay
off the old loan before starting a new one!
For
a more complete list of car dealer scams, Click Here
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