There are scams that dealer put during the deal. Get some guidance on how to avoid these scams. How do I know about my credit score? And what shall I do, so the dealer won't get advantage on it? 1. The VIN# window etching scam Basically a dealer will charge you $300-$900 for window etching and they will tell you that you have to pay the money to get the loan because the banks insists on it. Some dealers might tell you that the etching is free but will add on the etch money to your monthly payments to make up for it. The best way to avoid this scam is to force the dealer to put it in writing if they say that the etching is free or simply etch the car yourself. Remember a lender doesn't require that you purchase any extras on a car. All the lender cares about is that you can make your payments on time regularly. Don't buy into it. 2. The Financing Scam I have mentioned this before already, but here it is in more detail. Basically you trade in your old car and the finance manager tells you that your interest rate is good and then gives you the car. After a week or two passes you get the call from him that you didn't qualify for the interest rates that they gave you upon making the deal. Every new purchase has a clause in the contract that usually states that the deal is subject to loan approval. This gives the finance manager a loophole in getting more money out of you. All that this means in the contract is that the deal is not finished yet even you already have possession of the car and have signed the contract. The dealer can then charge you $1000 more in finance fees and up your monthly payments by $50. This scam is generally pulled on people with bad credit because it is more plausible. If you are wondering why they would sell you the car at 6% APR if they knew you had bad credit (remember they ran the credit search already) the answer is simple; to sell the car. You can avoid this scam by not financing the car with the dealer if you know that you have bad credit. You are better off going to a credit union and financing the car yourself. When you buy a new car the deal should be made on the price of the car, not on the monthly payments. 3. The Credit Score Scam This scam is ridiculous at best. This is when the finance manager tells you that your credit score is lower than it really is so that they can get you for higher interest rates. This scam is pulled on everyone; good or bad credit. This scam is easy to avoid. Just get your own copy of your credit report from Equifax.com, and bring it with you. It is really difficult to lie to you about your credit score if you have your own copy of it. If your paper and theirs doesn't say the same thing, go somewhere else because that dealership is lying to you. Don't forget to let them know it too because it'll be nice to watch them squirm. Get yourself black on white if the dealer offers anything free for the car. This is to avoid unnecessary extra payment on the car. Dealer will do anything to sell the car, even if they have to give you scams. Avoid Get the financing from the dealer if you have bad credit, find a better solution from the credit union or the bank. Get the copy of the credit report before getting into the deal, this is the better way to avoid the credit score scam from the dealer. |
