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Buying Used Cars
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It may not be available for the same deal tomorrow. What Kind of Buyer Am I? You just need to remember that dealer cost is not the same as the factory invoice. What really happens is that the dealership does help you get out of your current contract; however, they normally are forgetting to tell you how high your fees are going to be for breaking the lease agreement with your old dealership.
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Dont offer any money for a car unless you already know the dealer cost because you are setting yourself up to get ripped off. Factory Holdback scam: Dealerships depend on a buyers ignorance so that they can mark up your prices. This is far below the factory invoice number. They can include all kinds of extra fees in the additional dealer markup. This gives the finance manager a loop hole in getting more money out of you. Holdback is money paid to the dealer for about 2-3% of MSRP.
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