Look Out For These Car Credit Deals
It’s not a secret that when it comes to the automotive world – and it’s financing – it’s a buyer’s market. Between bankrupt automakers and desperate car dealers looking to get their extra inventory off of the lot, now has never been a better time to pick up a new car – especially if you need to apply for car credit to do so!
Like with most special deals, some of them sound too good to be true! Here are the most frequent offers that dealers are using to lure customers in, and why you should run away from them:
Buy One, Get One Free. So what’s the deal with this deal? By purchasing one vehicle, dealers will throw in another for free. It might be a great option for those larger families who could use the second car; however, be careful before you sign the contract. You won’t get a choice in the second car, and dealers are likely to force a large SUV onto you, which is one of the most unpopular cars on the market. Additionally, that second car isn’t exactly free: dealers will tack on hidden fees to ensure that they’re getting something for their troubles. If you’re buying that first vehicle with car credit, you’ll be stuck with a loan at a higher interest rate to cover the hidden costs of your “free” second car.
Low Interest Car Credit Loans. It’s no secret that dealers are starting to get desperate – and many of them are offering car credit loans at next-to-nothing rates. Does this sound great to you? Before you put on your shoes to head to that dealership, you need to possess perfect credit in order to take advantage of these rates. Besides, many of these loans are only available for certain car models, which means that your ideal car might not be covered by these low-interest car credit loans. To get the best deal on your car credit, be sure to get competitive loans from a third-party lender before approaching the dealership for financing. This way, you can ensure that you’re getting the best deal on your car credit!
Drive Off The Lot Today. Many dealers are promising customers that their car credit loans will be immediately approved, meaning that they can drive away with their dream car that day. Yet if you look closely at the fine print of that loan contract, you’ll see that the terms of the loan are subject to change – change which can occur just a few days later!
To avoid this trap, be sure to get a competitive loan offer from another bank or lender before you approach your dealer for more financing options. Don’t forget: never let the dealer know that you don’t intend to leave unless you have your new car. You want to have the power in all negotiations!