Car dealerships are one of the most convenient loan sources in the industry. However, they are also the most reported loan providers to be involved in various automotive scams. Borrowers should always be careful when taking financing from cars Nashville dealerships. Here are some common yet important reminders that borrowers should keep to avoid dealership frauds.
It is already a cliché in the automotive industry that borrowers should get their credit report before approaching a car dealer or a lender. While some may perceive this reminder as overrated, many do not still understand its importance. Getting the credit report beforehand will prevent borrowers from being lied to by abusive car dealers. It is good that they know their credit score already before walking into a car dealership lot. Otherwise, the car dealer can lie about the borrower’s credit score and be able to charge the borrower with a high interest rate which he or she does not deserve. The dealer obviously just did that to earn more profit from the interest rate.
It is also safer for borrowers to look among reputable and experienced cars Nashville dealerships than to small or new ones. The latter, especially those which are online-based, have more tendency to be non-existent or bogus. Borrowers would really have to research about their prospective car dealerships to ensure that they are legitimate and credible. They can read reviews and forum discussions about these dealerships and see what other people say about them. They can also contact a dealership via phone call or by personally visiting their offices. Borrowers can also ask around for recommendations.
The loan contract is also used by abusive car dealers to pull their tricks. Borrowers should then read the contract thoroughly before signing it. Car dealers would sometimes change or add details or conditions in the contract giving prior notice to the borrower. Also, in cases of borrowers and co-signers, car dealers can deceitfully put the loan in the co-signer’s name, who has a good credit, making him or her the primary borrower. Another common scam is the “financing fell through” scam. Borrowers will fall into this if they did not carefully read the papers they were asked to sign and did not notice the “subject to financing” clause. This means that the papers are not yet the contract and signing them do not, in any way, finalize the deal.
Lastly, borrowers should never take a car loan without looking into other options. They should first compare various loan rates and compute for the real numbers. This can be done a lot easier now as quotes from loan companies and auto loan calculators can both be accessed online for free. Comparing loan offers will help borrowers identify which loan offer is fake, abusive and competitive.