For most people, an vehicle represents the second most expensive purchase they will ever make. By following theses simple guidelines, you can save thousands when it comes time to buy a used car.
We get calls every day from customers that have gotten themselves into trouble by entering a used car contract that they can’t repay. If they’d followed some simple rules, these customers could’ve avoided these car dealer scams and they wouldn’t be in the predicament they find themselves in.
Know your Beacon score
Know what is on your credit report and what your Beacon score is. If your credit score is above 640, chances are great that you can get an auto loan with a normal lender. If it’s below 640, you’ll probably have to deal with a subprime lender. Since the process is a little different for bad credit auto loans, this info can be critical. This will also help you avoid the used car dealer scam of charging you too high of an interest rate – especially with good credit.
Know your budget and do your research
Set aside a budget for your car. Include gas as well as insurance (full coverage). At Canadaautoloan.net you will find a number of loan calculators that will help you estimate your car payment as well as give you an idea of your car budget.
Beware of unnecessary dealer “ads”
Gap insurance makes sense if you are taking out a 60-72 month loan with little or no money down. A reasonably-priced extended warranty also makes sense if you’re buying a used car or financing past the new car warranty period. But you need to beware of window etching, rust-proofing and paint protection. These are all products that add little or nothing to the value of a car and only serve to increase dealer profits. Don’t get scammed into buying them.
Choose your car dealer carefully – especially for a bad credit car loan
Check with your friends, co-workers and the Better Business Bureau before visiting any Canadian car dealer. Know their reputation for fairness in dealing with customers.
If you have bad credit, you should know that you probably have more options than you realize. Before going to a buy here pay here lot, remember that they don’t report to the credit bureau and getting a car there won’t help repair your credit. At CanadaAutoLoan.net, we have helped thousands of Canadians, with good credit and bad credit, buy a new or low mileage used vehicle that is not only reliable, but will help them reestablish good credit.
In order to avoid a bad auto loan, know your credit score and your budget. Do your research on the internet and decide which model and options best fit your needs. If you have bad credit Canadaautoloan.net can help. Once you’ve made your buying decision, fill out the bad credit auto loan application and we’ll send it to a dealer near you.
Tags: Auto Dealers, bad credit auto loan, canada, local toronto car dealers
This entry was posted on Friday, July 30th, 2010 at 9:20 pm and is filed under Auto Loans, Car Dealers, Used Cars. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Here’s the newest scam that I’ve seen and been subject to as of July 2011. It’s a new version on the classic Bait ‘n Switch. Here’s how it works: you work out a price with the salesman, have his ‘manager’ accept it (the old good cop, bad cop trick), sign the offer you made, and then pay the deposit. What happens then is the dealer (‘manager’) says he won’t sign the final deal because there was a “mistake” made with the price. They tell you that they didn’t include some option (body molding, seat upgrades, etc.) and you’ll have to pay the full retail difference. It’s called a bait and switch, and is currently being widely used throughout the US and Canada (I’ve had experiences with both at 5 different dealerships). The other version is that you go to pick up the car and they tell you that you have to pay more “because the price of the car has increased due to one fee or another” or “they made a mistake with the original pricing”. The way to get out of it: tell them that what they did is illegal and is called a bait ‘n switch. Threaten to get the authorities involved, demand that your deposit be fully refunded immediately, and then go and call your local BBB and the police.