Getting a new car on loan can be quite a harrowing process. The paperwork, the tedious buyer’s information, and loads of formalities, all leave a number of loopholes that can easily expose you to scams and frauds. Therefore, it is necessary to learn how to avoid tricks and rip offs on car loans and take proper precautions on time. Here are a few tips that might help you stay alert and avoid tricks and rips offs on car loans.
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Never shop a loan on the basis of a monthly payment, neither for a used car nor for a new car.
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Beware to take loan for as short term as possible. The dealers may advise you to take loan for longer term as it will help them in earning more interest.
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The borrowers will also try to include overpriced extra things in your loan, stay alert in this respect.
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Try to be careful while comparing the APR for two different car loans. It is one of the most common scams you need to avoid.
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Always try to figure out your paying capacity before deciding for any kind of loan option.
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Never get fooled by the 60 month loan story which is often narrated by several dealers.
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Never ever submit a cash deposit; you can always negotiate on the credit card charges in case of any problem.
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Always know your credit card score before reaching out to dealer. It will help in staying away from any kind of manipulation by the car dealer and help you gain a genuine car deal.
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One of the most common mistakes that people often make in this respect is – they buy the car without checking its online rates or knowing the worth of their own credit history. Always try to know about these two aspects as they may help you a lot in gaining better deals.
