If you sign a document and something you negotiated wasn’t in the document, then you are the loser. So make sure you review the fine print and all the details. Don’t assume that the dealership will get everything right. People make mistakes… and dealers are people too. Beyond this, unscrupulous dealers often use the documents to take advantage of unwary consumers.
Don’t buy back end products.
These are options that are offered (in most cases) by dealership finance managers as part of the finance process. They include window etching, tinting, rust proofing, paint protection, extended warranties, and gap insurance (and more). Of all the backend products, gap insurance is probably a good idea if you have a long-term (60- to 72-month or longer) loan and/or you have less than 20% to 25% to put down. Gap insurance protects you by covering the amount owed on the car versus its actual value after it’s been “totaled” in an accident. In addition, you may want to consider an extended warranty (assuming that it isn’t overly expensive) to help protect you from repair issues. On the other side, offers like window etching and tinting, under body rust proofing, paint protection and the like are typically not good deals.
Federal Auto Loan
The best way to avoid bad credit auto loan scams is to know your credit scores and be familiar with your credit reports. It is also a good idea to check up on your income and expenses to ensure that you meet the basic lender requirements before submitting a loan application. You should also know that if you have bad credit, you have more options available to you than you may realize. And before you visit a dealer, you should give us a look first. Here at Federal Auto Loan we specialize in helping people with bad credit find dealers that can help them get approved for bad credit auto loans. If you’re serious about rebuilding your credit and getting bad credit auto financing, you can start now by filling out our online car loan application at www.federalautoloan.com.
