Advertised
Dealer Special Financing
Some dealers will advertise special
financing rates in the local papers, on the radio
and maybe even their website. These ads can be very deceiving,
so read carefully. Sometimes there will be a low rate
advertised but there are certain conditions that apply other
than your credit rating.
Some Items to consider:
1.
Does the special rate apply to certain cars? I have seen
dealers advertise a very low rate that only applies to specific
cars. Such as a base model with now options and standard
transmission, a car that nobody wants. The models that most
people want do not have the special rate.
2.
What is the down payment requirement? Sometimes there could be
an unusually high down payment required, I have seen it range
from 25% to 50% and still be based on your
credit.
3.
What is the term of the loan? Dealers may have the special rate
but, it is only for 24 or 36 months and requires a down payment
also.
4.
Check the offer, many times the offer is an either or offer.
Which means you get the special financing or you get the
rebate. You don’t get both.
5.
Do you have to buy any extras to qualify for the special low
rate financing? Their may be a condition that requires to buy
extended warranties, service contracts, or rust proofing. Make
sure what the conditions are, and you understand them
fully.
6.
Sometime a dealer will run that special for financing and the
offer is only good for a day or two. The dates of the sale are
very small and hard to find. When you get there to buy a car
they say that the special is over.
7.
Make sure it is a normal auto loan and there are no surprises
at the end. Make sure the vehicle is paid off in full at the
end of the term. Watch out for any type of balloon
payments.
This is just a partial list of all the things you need to watch
for when buying a car.
Good Luck and check out some of
the other pages for more ways to protect yourself and save
money.
Financing and
Credit Financing
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