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How To Buy A Car
With No Credit Or Bad Credit
AVOID SCAMS
When
you’re working so hard to get the car
you want, you need to be sure you are
not being taken advantage of by
unscrupulous car dealers.
Unfortunately, there are many people out
there all too ready to sell you a lemon
with high car payments.
There
are many ways a dealer can try to scam
you. Thanks to a great website,
www.carbuyingtips.com, we can show
you their top ten car buying scams and
how to avoid those scams.
“The
Financing Fell Through”
This is the oldest trick in the scam
book, increasing in 2005. How it works
is you buy a new car, the finance
manager says you got a low APR, hands
you the keys, and you drive home. Some
time later after you’ve been driving the
car happy about your great interest
rate, the dealer calls you saying
"Sorry, you didn't qualify for that low
interest".
This is where "subject to financing"
clauses on contracts bite you in the
butt. Everyone thinks that you sign
papers it's a done deal. The dealer knew
exactly what you qualified for before
you signed, unless you lied about your
income. They knew your credit score
when you applied.
There is a phrase on most sales
contracts stating "subject to loan
approval". This means that the deal is
not final, even though you signed this
contract. They'll tell you that you
must produce an additional $1000 AND
your payments would go up. They pull
this scam on people with bad credit,
because it's believable and they figure
you’ll just pay up somehow so you can
keep your car.
To avoid this scam,
DON'T FINANCE AT THE DEALER if you have
bad credit. Line up your own financing
and compare to dealer's financing. By
using your own financing, you won't
endure monthly payment scams, and the
deal will be based on the selling price
of the car, not monthly payments.
If they start negotiating the car by
monthly payment, it's time to leave. If
they keep trying to shift your APR up or
down depending on whether you buy a
warranty or VIN etching, it's time to
leave. But if you do finance through a
car dealer, leave a deposit on your
credit card, and do not take delivery of
the car until the loan has been approved
in writing a few days later. Then you
know the lender has approved your loan.
If this scam happens to you, you’ll have
to decide whether or not you feel you
got a good enough deal on the selling
price of the car. If you got a good
price on the car, your best solution is
to preserve your deal and get your own
instant financing online.
If the dealer refuses your online check,
you should try to get out of that deal.
File a complaint with the Better
Business Bureau at BBB.com, and file a
complaint through your state's Attorney
General web site. They are all aware of
Spot Delivery Scams.
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