In all businesses and industries there are good and ethical companies and there are scam artists or people that try and exploit others. Many people may have had experiences with some not so desirable people or companies and often generalize that industry as being all the same. "I got taken and scammed at that dealership so all dealerships are bad!" Right? Wrong! To avoid getting taken advantage of, in any business or industry, it's important to do your research. When buying a used car at a bad credit car loan dealership, please keep in mind some things. What are your expectations or what should you expect when you are going to a bad credit car loan facility? Some lenders will only give approvals if you have had a prior car loan in your history. This may be a surprise to you but some lenders will only do business with customers who have had a car loan before.
What some people should look out for in the above situation is if the current dealer was similar to the last one. If you did finance a car from a crooked dealership before and you are concerned about the same thing happening again, the best bet is to see if there are similarities. Now you are a bit smarter and you know that you should check your credit score to see what interest rates you are eligible for so you don't have to pay that high interest that you got charged on your previous loan. Know where you stand. Last time you were told that the bank required you to buy an extended warranty. Remember that warranty has nothing to do with the bank but is a product sold by the dealership. If you know that your previous dealer lied about things, make sure they don't happen again this time. Double check the cost of the car and your monthly payments. At first glance they may seem to mesh but take the time to do the math. Even the slightest adjustment in monthly payments may result in the dealership making a lot more money from you.
Another important thing to look out for is to look into your interest rate agreed upon when you sign the contract. A lot of dealerships will call the customer after a few days and indicate that your approval didn't go through as planned and that now your interest rate is higher and your monthly payments have gone up. The most important thing to do is to negotiate your loan first before you buy the car. With credit being an issue, you want to know where you stand first so you know what you are entitled to. If you have a minimum monthly income of at least $1500 then you should be in the range to get yourself the approval first at the standard rate for you credit score and then you can work out the details of the car. Not the other way around.
Thank you for reading this article it is brought to you by Manor Contours Ltd Toronto, at Manor Contours we specialize in bad credit car loans for luxury and exotic cars. Don't just dream about your dream car, drive one today even without less than perfect credit. To visit us online at http://www.manorcontours.com
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What are some tips to avoid scams when it comes to bad credit car loans? Gallery
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