Buy Here Pay Here could be a great option for buyers who have a bad credit history and want to finance a loan for the purchase of a used car. However, the fact that there are a lot of scams do occur every day that rob buyers out of money must be considered before agreeing to any contract with the car dealer. Here are the scams that buyers need to be aware of in order to defend against unscrupulous sellers.
Consumers with bad credit have a difficult time to get loans from somewhere else and they tend to accept any loan offer dealer shows them up. This may include loans with dramatically high-interest rates. It is advisable to assess your financial capacity beforehand and understand clearly what amount you can pay as down payment as well as monthly installments. Don’t limit yourself to a dealer you contacted the first time. You may get better loans at cheap interest rates. Explore thoroughly other opportunities too before you sign a contract with a seller without giving much thought.
Buyers should ask sellers for the inspection report to make sure the vehicle is what they expect it to be. After all, you will be paying a nice amount for the car of your dreams – and heading out towards the transaction will not be a good thing unless you have gone through the inspection report. You can request the car history facts report from the seller even if he does not have it currently. A small fee to request the report can save you dollars.
Moreover, watching out the inspection will assure you if not the car was salvaged from the floods or hurricanes.
You might be ready for a purchase because of, for instance, you have to pay only 10% interest rate on the loan. The deal is great - but it can only be tentative as long as it is promised verbally. You never know the installment amount calculated could be based on interest rate more than 10%. Having no written statement about the price, rates, terms, and conditions, you can end up being in an outrageous financial trouble.
This type of scam can be a deliberate one or an accidental mistake. Either case, you need to be cautious that all the details mentioned in the contract papers are best to your agreement. The errors can be regarding purchase price, loan terms, interest rates, down payment - or anything for that matter.
The contract might require payments to be made over a particular period of time and this might give an opportunity to a shady dealer to play a scam. You might receive bills more than you were actually supposed to pay. Therefore every time you get payment bills, calculate the payment amount at your end as well to match the figures. If they are not matched to your surprise, that simply means there is something fishy that you must get to know about.