How to Avoid Auto Loan Fraud by Dealerships

In the present economic environment, auto loans taken through car dealerships from whom you are purchasing your vehicle is deemed as possibly the cheapest way of raising requisite funds. This is because the rates of interest in this case are considerably low when compared to other financial institutions. However, you may sometimes be taken for a ride in case you are not cautious and alert while signing on the documents while purchasing a vehicle. This is why you should be aware of the fraudulent practices that may be followed by dealerships while granting auto loans so that you may steer clear of them:

You must print you’re your credit report and take it along with you while applying for an auto loan with dealerships. This is because they may unethically try to project that you have a lower credit rating than you actually have and try to charge more down payments and higher rates of interest that they seemingly justify because of your supposedly bad credit. On the contrary, when you possess written and printed proof of your rating, they will be forced to accept it.

You must be aware of all kinds of hidden charges that may be levied by the concerned dealership. Sometimes, the amount that is quoted by them may differ greatly from the amount you actually have to pay by way of taxes, labor costs, etc that may be projected later on. So, you must carefully read all documents presented to you before signing on them and making yourself liable.

If the dealership that you are purchasing your vehicle from asks you to pay a warranty on your loan amount, you should down right refuse to do so as this is just a scam to make you shell out more money for obtaining an auto loan.

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