Posted: Friday, March 25th, 2016
The unfortunate reality of consulting money-lenders is that some lenders are unfortunately duplicitous and prey on the susceptibility of borrowers who find themselves in dire financial straits. That’s why Green Light Auto Credit is committed to helping drivers avoid car loan scams when they apply for financing.
The Major Car Loan Scams
There are many underhanded car loan scams that money lenders use to trap prospective borrowers in unfeasible loans and harsh payment plans. Here’s a few of their more popular tactics:
- Changing Figures In The Lease Agreement: Leasing agreements can be convoluted with misdirecting jargon and legalese, and one way money lenders fleece unsuspecting borrowers is by tweaking the fine-print contractual details to raise the cost of loans. The best way to prevent this from happening is to have your accountant or attorney look over your lease agreement before signing.
- Raising The Price On The Vehicle: Dealerships and lenders often attempt to misconstrue the true value of a vehicle through negotiations. Many car shoppers don’t realize that negotiating the purchase price of the vehicle is a fundamental part of leasing, and instead go for the flat-rate MSRP. Be sure to negotiate diligently and shave as much as possible off your final payment.
- 4-Square Price Confusion: Lenders may try to confuse car-buyers by “mistaking” the separate costs of the price of the car, down payment, trade-in value, and monthly payment, presenting them instead as a single transaction. This trick can typically only be pulled when negotiating at a dealership in-person. Communicate over the phone and talk through each of the four price-points so you know what you’re paying for and exactly how much.
- High-ball Offer Over The Phone: When calling a dealership to voice interest in trading in your vehicle, they may give you an attractive price-point and significantly lower it when you’re on the lot to pressure you into lowering your asking price. Don’t let them do this; shop your car around multiple dealerships and remember that an offer not made in person has no guarantee of being honored.
How to Get a Great Loan Rate
- Yo-Yo Financing: In this scam, the dealer allows you to take possession of a car before the financing process has been completed. Then, a few days later, the dealer informs you that the financing didn’t go through, and you’re now expected to pay a higher interest rate, higher fees, and a larger down payment. Yo-yo financing most often targets buyers with less than optimal credit.
What is Yo-Yo Financing?
You’re in Good Hands With Green Light Auto Credit
Green Light Auto Credit is a reliable money-lender that is built on the promise of helping applicants build a better financial future through payable loans and achievable financial goals. Take a look at some of our testimonies from satisfied and enduring patrons who have borrowed from us. We’re committed to earning your service, and will work with you regardless of your past credit history to find affordable financing.
Avoid Car Loan Scams with the Help of Green Light Auto Credit
Green Light Auto Credit is here to help you be on the lookout for malicious car loan scams that can have longstanding consequences for your ability to secure a loan. Feel free to contact us online or by phone at 866-845-1603 to speak with a representative about how you can secure a loan today.
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