How to avoid car dealer scams

What to know about Car Dealers

For most people, an automobile represents the second most expensive purchase they will ever make. By following some simple guidelines, you can potentially save thousands of dollars when it comes time to buy either a new or used car.

At CarLoansLocal, we get calls every day from customers that have gotten themselves into trouble by entering into a sales 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 FICO score

Know, ahead of time, what is on your credit report and what your FICO score is. If your credit score is above 640, chances are you can get a car loan with a conventional lender. If it is below 640, you will probably have to deal with a subprime lender. Since the buying process is different for a bad credit loan, this information can be critical. This will also help you avoid the dealer scam of charging you too high of an interest rate - especially if you have 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 autocreditexpress.com, 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.

Research the car – or cars – that you’re interested in. There are a number of web sites out there that can help you with both new and used cars not the least of which is consumerreports.com. These sites can help you determine which vehicles are the most dependable and many of them also list dealer cost in addition to sticker price. You can also look up the rebates and customer cash associated with the models you are interested in. This will prevent you from paying too much for your next car.

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 a 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 bureaus and getting a car there won’t help repair your credit. At Auto Credit Express, we have helped thousands of customers, 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 car 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, visit us at www.autocreditexpress.com for payment and loan information. Once you’ve made your buying decision, fill out the bad credit car loan application and we’ll send it to a dealer near you – one of 500 nationwide that specializes in a full range of automotive finance choices.