Doing Used Car Financing the Right Way
Most car buyers do not take the time to shop for used car financing before going to the dealership. This is a big mistake that many dealers can easily take advantage of. Those who do not take the time to research their options are more likely to have hidden fees passed on to them. This is because most people do not realize is that dealers do not finance the car loans. They are the middlemen who simply arrange to finance using their relationships with banks and financing companies.
What to Look Out for in Used Car Financing
One of the biggest scams that people fall for when it comes to used car financing is having the dealer unknowingly increase the monthly payments by adding such things as a warranty and GAP coverage, which you did not ask for. This can cost you upwards of $3000 over the life of the loan. A similar scam is when the dealership tacks on what is known as a “mark up” on the loan. They can add up to two and a half percentage points to the rate the finance company quoted them and pocket the additional cash for themselves. Also, be advised that the dealer is under no obligation to offer you the lowest rate you qualify for when it comes to used car financing. They just want to make as much money as they can off the sale of the vehicle.
Avoid Paying Too Much for Used Car Financing
The best way to avoid any and all of these issues is to shop around and apply for used car financing before you go looking for a car. It is best to not rely on the dealer, as they are not looking after your best interests, only their bottom line. This is especially true if you do not have great credit. Therefore, another thing you need to do is to do a credit check before you go looking for a car or used car financing. Bad credit scams are numerous. Not only will you end up paying more, you could end up being hassled by the dealer to return the car because you did not qualify for the original loan you were quoted.
If you are looking for a car in the El Paso area and are in need of used car financing, contact Express Auto Credit. We help our customers get the most out of their used car financing so they can drive away in the car of their dreams. Contact us today!