Get a car loan without getting ripped off
When is a loan a rip-off?
Excessive interest charges are obvious, but there are other, hidden pitfalls. For instance some dealers will push buyers into longer term loans to make the monthly payment smaller so the car seems more affordable. Do you really want to take 7 years to pay off a car loan? Do you know how much more interest that generates?
What to do before you apply for credit.
One of the most important things to do is check your credit score. Your FICO score is just one number given to you by the three major credit bureaus (Experian, Equifax, and TransUnion). Before a dealer will negotiate with you they want to see what financing option are available for you. Know your score.
What a disclosure tells you.
Federal banking laws govern what must be disclosed to the borrower by the lender. Often these details are glossed over or the deal is pushed through without the buyer taking time to understand what they are signing. But the fine print has been submitted so these dealers are technically compliant. Take the extra time to read the details.
Once you sign, it’s over!
There is NO GRACE PERIOD following your signing of an automobile loan agreement. No three day cancellation period, or any required period in which the borrower may change their mind and cancel the loan.
Do your homework.
The average American consumer will buy and finance a vehicle every 30 months or so. If you live to be 70 years old that means approximately 28 vehicle purchases in your life. If you average a $2,500.00 overpayment per deal that will be $70,000.00 in accumulated financial loses. This figure ($2,500.00) represents the overpayment made by each consumer in price and financing cost on an average car deal in America.