Most people don't realise how easy it is to get online financing to buy a new or used car. But when people look for a new car, they don't think about the fact that online car loans can save them money in the long run.
Think about this: when you get financing from the same dealership or car lot where you plan to buy a car, you have no other choice. If you don't already have car financing when you walk into the store, you are probably at the mercy of the dealer's finance company.
Most of the time, dealer financing is much more expensive than even a car loan for bad credit that you could get yourself with a little work. Also, keep in mind that if you do get a loan, it probably won't be the best or most competitive loan you can find. The goal of a dealership is to sell cars, and that's it. And, unfortunately, more than a few dealerships are using tricks and lies to sell cars at prices that are too high.
Let's look at one of the ways that dealerships try to get you to pay them more money over the long term of a car loan. It's a scam based on your credit score and the interest you'll have to pay on the loan.
Most of the time, you buy a car at a dealership. You go in, fill out the forms, get approved, and then drive home in your new car. You think that everything is fine because you got the loan and took possession of the car.
But then, a few weeks later, the dealership calls to tell you that the interest rate on your original car loan will be higher than what you agreed to. What went wrong, and how did it go wrong? After all, you signed a contract, they checked your credit, said everything was fine, and let you take the car home.
Here's what the dealer says happened, and here's the scam: even though they took your application, approved the sale, and let you drive the car home, they "weren't able" to get the right financing for the car because of your bad or low credit score. Since every car sales contract has a "subject to loan approval" clause, you now have two options: either return the car or pay a new, higher amount each month.
Most people in this situation don't have many choices and end up paying the extra money by either changing the terms with the dealer or putting down more money for the down payment. And keep in mind that all of this happened AFTER you agreed to buy the car and signed a contract at the original price.
It's a common type of scam called "bait and switch," but you can avoid it. How? By getting a bad credit car loan online, you can get pre-approved for your car loan before you go to the dealer. This way, you won't fall for their tricks. It's easy to start an application online, and most of the time it only takes a minute or two to hear back. Visit http://www.squidoo.com/car-loan-bad-credit/ for more information on bad credit car loans.
