Bad Credit Blog

Car buying can be an extraordinarily stressful experience if you don’t know what you’re doing. It’s like playing a game where only one side knows the rules. And that side is the dealership. So to even the playing field here’s some simple car buying rules to help you truly get the best deal on your next car.

Once you’ve found the car you want, it’s time to sit down with your sales rep to negotiate the terms of your contract. After a little back and forth on price, figuring out your interest rate, and calculating your monthly payment, you’re ready to sign on the dotted line, right? Not so fast. You’ve only taken the first step in car buying.

When you read the fine print you may find that additional fees and charges have found their way into your contract – including add-ons you didn’t necessarily ask for.
Most people in the middle of the car buying experience are so focused on getting the best interest rate and negotiating the most affordable monthly payment that they’re unconcerned with the fine print of the contract. By the time they get to the step where they review and sign the paperwork, if the sales rep is throwing industry terms at them that they don’t fully understand, they become exhausted from the entire process and just want to get it over with.Here are a few insider tips to make sure you don’t regret signing those papers.

First Rule Of Car Buying - Read the Fine Print

While this seems pretty obvious and self-explanatory, it’s amazing how trusting the car buying consumer can be. Honestly, the last time you bought a car, did you read and fully understand the contract before you signed it? Probably not. Most people don’t. Some unscrupulous car dealerships are betting on that.

Because most people don’t read the fine print, some sales reps can slide in additional, undisclosed charges or extras with huge mark-ups to their profit.

Also, make sure there are no blank spaces on your finance contract that can be filled in later - wherever there are blank spaces, write in “$0″ or “N/A.”

Second Rule Of Car Buying - Typical Extras

Most of us are familiar with learning about the standard features of a vehicle and then figuring out which additional features we are willing to pay extra for. But here are some extras to look out for when reviewing your contract

• Fabric protector
• Car alarm (this includes LoJack)
• Paint sealant
• Credit life insurance
• Window etching
• Extended warranties
• GAP

The value of such extras depends on individual customer needs and situations. If the sales rep attempts to tell you that some or all of these extras are “standard” for every vehicle on the lot, ask to order your car from the factory, or suggest the dealership trade with another dealer that hasn’t pre-packaged their vehicles. Extra products can add thousands to the negotiated price of the vehicle.

The Problems With Extras Occur In Two Areas

First - Rather than suggest specific extras individually priced, the sales rep lumps all the products together and pushes you to buy them as a package.

Second - Unscrupulous sales reps can add thousands of dollars to the amount financed for these products, but not disclose the price increase until the last possible moment, when the financing contracts are being signed.

Ask for a Menu System Disclosure

The best disclosure method I’ve seen in years involved using a menu system. On a separate sheet of paper the rep produces a document that includes:

• The negotiated price of the vehicle or trade difference
• The additional price of suggested extras (these can be shown as various option packages that may save money when bought in combination and as individually priced options)
• New totals initialed by both parties. This procedure makes sure that any suggested extras are properly explained and disclosed. It also allows the customer time to consider each item separate from the longer and potentially confusing finance documents. The final numbers from the menu should get carried over directly to the finance document.

Your best bet when car buying - as always - is pre-approval for a vehicle loan. With pre-approval you will know how much you can afford for a new vehicle, and will be able to leave a little room for warranties and GAP, without getting duped by the dealership into purchasing unwanted items and paying for them with higher payments or longer terms.

If you want to purchase from any dealership you choose then we highly recommend getting pre-approved for a loan from RoadLoans or HSBC Auto.

If you want to work directly with a dealership that has a relationship with the lender then DriverLoans or Harbor Credit are great companies.

All of these lenders are major nationwide banks. They will treat you right, regardless of your credit situation.

Your wallet does not have to go through the ringer when purchasing a new vehicle. You can protect yourself from blindly signing an unfavorable car deal by doing your homework, going to a car dealership with a good reputation, being prepared, asking questions, and double checking behind your sales rep.

By Scott Conklin

For more credit help, please visit our site. We have been there and know how bad credit can affect everything, including your health. Take a look!

If you know someone struggling to quit smoking we found a great site that offers genuine  help. You can Quit!!

Here is a great site for some wonderful Christian articles, short stories, plays, family stories, Bible studies etc by Kathy Kearney. Check it out.

No one wants or expects to get duped by a car dealership. Unfortunately, it happens more often than it should. If you’re in the market for a new vehicle, protect yourself by recognizing the most common car dealer tricks and traps.

Scams happen on the car lot everyday. These aren’t the clever and amusing schemes you’ll see in movies like Catch Me If You Can or Matchstick Men. Car lot scams are nothing more than simple, petty tactics used by unethical dealers to trick you into spending more than you have to. You can avoid this by being Pre-approved before going car shopping .

Dealers love to say that they’re looking out for your best interest; but they aren’t always sincere. Here are some things to watch for:

VIN etching. Your dealer might recommend having the car’s windshield etched to deter theft. Not a bad idea, but politely decline if he wants to charge you a premium for the service. You can buy a VIN etching kit online for $20 to $30.

Loan guaranty. Ignore any claim that your dealer makes about paying off your loan if you find yourself unable to meet that obligation. If you default and the dealer pays it off, you’ll end up owing money and fees to the dealer instead of to the bank. Either way, your credit rating will be shot.

Affordable payments. Some dealers will want to negotiate with you on the car loan payment , rather than on the price of the car. They might say that they’re trying to make it more affordable for you. But it’s more likely that they’re trying to confuse you into paying too much. What’s another $1,500 when you’ve already agreed to pay $25,000? Some dealers like to strong-arm you into paying more by adding in fees after you’ve already agreed on a price. Here’s how they do it:

Dealer prep. Every dealer will try to charge you dealer prep costs. Your job is to know ahead of time what the standard costs are for that car by checking an Internet site, like Edmunds.com. Try to negotiate these as low as possible. And never pay more than another dealer would charge, or more than what’s listed on the sticker.

Extended warranty. It’s your decision to purchase or not purchase an extended warranty. Period.

Bait and switch APR. You buy the car and take it home. A week later, you’re notified that, due to a problem with your loan approval, your interest rate and monthly payment are being increased. The bait-and-switch APR scam is one of the most frustrating tricks a dealer can pull. Avoid this by arranging for financing before you walk into the dealership.

In this storyline, it isn’t the con artist who’s the clever one-it’s you. Keep an eye out for the warning signs and head for the door if you suspect someone’s trying to rip you off.

Ref: MortgageLoan.com

BY: Catherine Brock

For more credit help, please visit our site. We have been there and know how bad credit can affect everything, including your health. Take a look!

If you know someone struggling to quit smoking we found a great site that offers genuine  help. You can Quit!!

Here is a great site for some wonderful Christian articles, short stories, plays, family stories, Bible studies etc by Kathy Kearney. Check it out and be sure to sign the guest book.