This article contains some tips about what to look out for when you are seeking cheap car finance.
First of all, avoid falling into the trap of spot delivery. This is when you make a down payment for a car but do not sign a contract. In this case, the dealer may have told you details about the monthly payments. However, because there is no contract, the dealer can call you up and say that there was a problem with your cheap car financing arrangement. You may end up needing to give up the car (and your down payment), or having to pay much more than you were initially told. So, always take care to sign a contract before you make a payment and before you take the car home.
Also, when you are given a contract to sign, make sure you read it carefully. If it says anything about being “subject to financing”, you should run like the wind or at least be very cautious about proceeding.
Another thing to look out for is additional dealer mark-up. These are the little extras that the dealer tries to make you pay for after you have agreed on a price for the car. When a salesperson is offering you these extras, keep in mind that this is what their commission is based on. Thus, they are not necessarily acting in your best interests. Minimizing additional dealer mark-up costs can help you get the cheapest car finance deal at the end of the day.
Sometimes people end up buying a car that they do not need finance for. In this case, avoid letting anyone do a credit check on you, as there is no need for it. If you do let them do a credit check, your credit score can decrease automatically, so avoid this at all costs. Otherwise, when you are going for car finance in the future, you may have more trouble getting cheap deals. Also, do not fall for their claim that it is their policy to run a credit check on all customers, regardless of whether or not they are paying cash. It is a con. If you pay cash, they will sell you the car without a credit check, despite what they say. They would be crazy not to.
{ 0 comments }
