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Buying Used Cars
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You dont want to buy a car that is in demand because it is the easiest way for a dealership to mark up the prices. To avoid this scam, you have to bite the bullet and ride out your current lease till the end. The finance manager is counting on you being confused and desperate to get out of there, so assumes you will simply go along with whatever he says. It doesnt matter if its your third new car or your first, it is inevitable. So many people get ripped off after they have already closed the deal. This fee can be seen on the orange sticker marked on the manufacturers suggested retail price (MSRP).
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Dont try to pull one over on the dealer by lying about the condition of your trade in vehicle. So in the end your offer should be calculated like this: Calculating your offer to a dealership is as simple as that. Dont give the dealership a deposit and then try to take it back for no reason because you should have researched the car before making the purchase. When you are paying cash why would you think that you need to fill out a credit application? Based on the above calculations, the dealers real cost is ,922 (invoice) - 0 (incentive) - 7 (holdback) = ,957.
Purchasing a new car from the dealership leaves you open to dealership scams, but what about when you need to refinance your car loan?
Many of the scams are the same as you will encounter when buying a car.
Here are the best tips for avoiding any of the refinance scams that dealerships force you through.
Get your own credit score and bring it with you to the dealership
Dont pay a cash deposit for your financing loan because if the deal goes bad, you cant get your deposit back
Dont apply for a car loan until you have been employed for at least 6 months if you are a recent college graduate
Apply for your loan online so you can avoid getting ripped off
Learn to fix your credit before you apply for a loan. Get your credit score to at least 680 first.
Pay off your credit card debts before you look for a new car
If you have recently moved wait 6 months before applying for a loan. You addresses are always verified. If you move a lot, they will not trust that they can keep track of your whereabouts should you make late payments etc.
Having been approved for a loan in the past helps
Dont get a co-signer for your loan because often times you will find that the deal is solely in the other persons name