Auto dealer exemption means first time car buyers must be wary

An auto dealer exemption was signed into the financial reform bill. Auto dealers are more likely to deceive buyers since the auto lending regulation is no longer in place. To get a better deal, very first time car buyers have to know about these practices. You are going to want to know what you are getting into with auto financing as well. Post resource – Auto dealer exemption means first time car buyers must be wary by Personal Money Store.

Car payments down with more interest

There isn’t nearly as much money in auto sales as there is in auto financing for dealerships according to AOL Autos. Car dealers do not even give choices for interest rates; they want to know what kind of payment you are looking for. The dealership bases anything off that info. An rate of interest that is lower for a car loan will conserve people thousands of dollars. Car buyers have to be careful working with an auto dealer on car loan for their next vehicle.

Get your credit score before learning about interest rate deals

Bankrate.com reports that dealers are middlemen working with lenders who give them wholesale interest rates. Dealers mark up those rates by up to 3 percentage points. Numerous dealers hope the consumers do not know what interest rates they qualify for so higher interest rates could be charged. You need to know what interest rates you are able to get.

Discover your loan approval before looking at cars

A good way to know for certain what type of rate of interest you qualify for is to get approved for a loan before you even set foot on the car lot. However, The New York Times reports that if a car buyer shows up already approved for a loan, dealers will make an effort to discover some other way to make money off them. Some things they try to sell are window etchings, disability, or other kinds of insurance. Many dealers tell the customers that they can only get their loans with extra add-ons, although this is illegal.

Don’t sign anything that says loan approval is a condition of the sale

”Yo-yo” is what the Times article calls it Buyers can get their cars and leave just to get an annoying phone call just a little later saying the loan didn’t go through and needs to be changed so it is a higher rate. This won’t happen if you get your loan approved beforehand. Before you get your automobile, make certain the dealer gets your financing approved, Bankrate.com suggests doing. You may have to wait a few days longer than before, but it is worth it.

Find more details on this subject

AOL Auto
autos.aol.com/article/car-finance-interest-data/
Bankrate.com
bankrate.com/finance/auto/3-tips-on-getting-a-car-loan-at-the-dealer.aspx
The New York Times
nytimes.com/2010/07/17/your-money/17money.html