It is highly important to make wise decisions when it comes to buying a new or old car. There are several criteria to be considered before buying a car. It is not good to expect all the dealers to be honest. Selecting a dealer should not be taken as an unimportant task. There are several scams exposed every now and then and buyers must be aware of them to safeguard their financial interests.

Interest Rates Scams:

There are several instances in which the lender may initially accept your loan application in the beginning. Once you take the possession of vehicle, you might start receiving calls from the lender informing the disapproval of your car loan amount. Also, they may offer a higher interest rate on your car loan. This is a clear trick of asking you to pay more. To avoid such scams, you must thoroughly check the auto loan document and make sure there are no loop holes.

Credit Score Scams:

It is very important for the borrowers to be careful regarding the credit score. They might lose huge amounts of money in the long run if they prove to be careless. Poor credit score will force them to pay higher interest rates. Hence, it is important to be aware of your credit report and errors on it. Dealers might declare you a poor credit borrower due to error and charge you higher interest rate. The borrowers must be in a better position to understand this trick and argue on the same issue.

Warranty Scams:

There are certain dealers who will force the borrowers to pay a hefty amount of money for a forced warranty scam. They might attribute that banking officials have demanded the required amount of money. It becomes important that get this information in writing. It is quite possible that the bank may not be demanding extra cash.

Dealer Prep Scams:

The dealership prep scams are one of the oldest forms of scams. The dealer might charge you higher on labor costs, maintenance costs and various other aspects. However, most of these jobs are simple and don’t require any hefty charges. People who are aware of this information can argue for their rights and avoid such charges.

Now that you know how dealers trick you, you will be more cautious next time. Remember all lenders are not bad but it is better to be safe than sorry.