When car shopping, the excitement of researching newer models, the thrill of the test drive and the anticipation of new technology, can make it easy to overlook the fine print or miss red flags. So, before you start your car-shopping journey, be aware of these shady practices that could quickly take your joy ride down a rocky road.
Sky High Rates for Subprime Buyers
If your credit is tarnished, lenders may offer you a loan with an outrageously high interest rate. Although higher rates for low-credit borrowers are common, some dealerships take advantage of the buyer’s excitement and markup rates even higher.
- What to do instead: Before you step onto a car lot, check with your financial institution to see if what loan you qualify for. This not only helps you know what you can afford and what you will pay, but it also gives you more negotiating power.
“As-Is” Cars That Aren’t Road-Ready
Some dealers are looking to rid their inventory of vehicles with major, undisclosed issues. They may drive well for a while, but it won’t be long until you are spending more time at the mechanics than on the road.
Protect yourself by:-
Asking for a full vehicle history report
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Bringing a trusted mechanic to inspect the car
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Walking away if the seller won’t answer questions
Worthless Add-On Warranties
For peace of mind, you may be tempted to purchase an extended warranty, service contract, or protection package for your new ride. Unfortunately, many aftermarket warranties have lengthy exclusions, cumbersome claim processes, or limited coverage – making them practically useless.
Make sure you’re covered by asking:-
What exactly does this warranty cover—and not cover?
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Are repairs required at specific locations?
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Do I feel pressured to buy this add-on?
Unconfirmed Financing
A dealer may allow you to take the car home before financing is finalized, only to contact you later claiming that your loan “didn’t go through,” pressuring you into a worse deal.
- Stay put until the deal is done.
Never drive off the lot until the financing is finalized and the paperwork is signed.
Hidden Fees
You finally agree to a sales price only to discover documentation fees, prepping fees, vehicle etching fees have been added – creating profit for the dealer and zero value for you.
- Tip: Ask for a detailed price breakdown and challenge anything that seems unclear.
Let us help put you in the driver’s seat!
Buying a car is a big decision. Fortunately, we can be of assistance. Contact one of our branches to help you make your purchase less daunting by:
- Securing pre-approved for an auto loan with transparent terms
- Getting guidance on affordable financing options
- Accessing budgeting tools to help you determine what you can truly afford