When you are buying a new car watch out for the dealer who hands you the keys and says good by everything is under control you gotten a low APR. You drive on home and several weeks later, the dealer calls informing you that he is sorry but the loan did not go through as expected, as you do not qualify for that low APR after all. Now you are expected to purchase the vehicle at a much higher rate this is the “spot delivery scam.” The dealer knew all along what your credit was because it only takes a few minutes to find out if it is below 680 or above which determines your APR. Your contract states “subject to financing” the dealer knows this and uses this in order to sell your contract to some lender for a higher APR so that both he and the lender are making money. You need to find your own financing before you go to the dealership in order to prevent this from happening. This scam can be two fold in that the dealer sometimes lies to you about your credit score as well as selling your contract to a lender in order to make more money for the dealership.
Car Dealer scams apply when you are buying a used car so you need to be aware of that fact and watch out for the problems that arise before you purchase a vehicle. First, have a mechanic look at your car upon a lift to check for any damages due to accidents. Then you should run a vehicle history report t find out if the car has been involved in an accident, totaled, salvaged, rebuilt, flooded, failed inspection or had the odometer rolled back. Finally to be on the smart side of a used car purchase never sign an “As Is” paper at a used car dealer make sure that you get at least thirty days warranty. We cannot express enough to have your own financing set in place before you go shopping in order to prevent any finance scams.
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