How Do You Avoid Car Financing Scams?
Car financing scams tend to appear not as anonymous emails or faxes from third-world countries but as wolves in sheep’s clothing. They are often contrived by car dealerships, salesmen, finance office staff and other lenders. To avoid scams, car buyers must prepare thoroughly for the process of getting car financing, and do everything they can to simplify and separate the issues that lenders often try to bundle together. Do the math. Sit down with the car dealership’s finance person and walk through the calculations involved in setting your interest rate and monthly payment, based on your credit score and any other factors. Ask for a detailed explanation of any discrepancies and make sure that your rate and payment is not being padded to provide extra profit for the dealership. Avoid add-ons that are offered to you by the finance department when you thought you had already negotiated everything. Add-ons, such as additional maintenance coverage, are sometimes referred to as “junk fees” t
