Buying Used Cars
April 17th, 2008 at 06:53am By Dennis
Under Buying Used Cars
What it is
I’ve been hearing more and more about this type of dealer scam lately. They get a potential buyer with bad credit, tell them that they have good credit, and offer them a low rate (pending loan approval). The customer drives off the lot with their new car thinking they got a good deal. The phone call comes in a couple of weeks that the rate has now increased, because they didn’t qualify for the low rate.
How to avoid it
The best way to avoid this kind of scam is to get your car loan in advance. Try your bank, or credit union first. Many dealerships would not pull this scam, but there are some out there, so you have to be careful. If the dealer wants you to drive off the lot without a final price and APR, you are at a great risk of this happening to you. Walk away now.
What if it happened
You should contact your state’s Attorney General, and explain the situation to them. You can then report the dealer to the Better Business Bureau. If the rate is high, you can also try to refinance your car through a reputable website.
Popularity: 52% [?]
August 23rd, 2007 at 10:49pm By Dennis
Under Car FAQ: Car History: CarFax: VIN Search
Lemon Check – Is the car a Lemon.
Record Check – How many records are in the CarFax Database.
Recalls – What recalls are there from the manufacturer.
While the above information can be interesting, it doesn’t really tell you everything you need to know. You are better off running a full CarFax to determine if there are any issues.
Popularity: 84% [?]
August 23rd, 2007 at 10:45pm By Dennis
Under Car FAQ: Car History: CarFax
CARFAX is unable to provide vehicle history information for vehicles manufactured prior to 1981, because there were no standardized vehicle identification numbers on vehicles prior to 1981. Since the standard VIN is the key to creating Vehicle History Reports, it is nearly impossible to produce accurate and reliable information on a vehicle’s history. You can contact vehicle-specific clubs or groups focused on older vehicles, but there is no method as accurate and reliable as using a VIN to track the history of a vehicle.
Popularity: 100% [?]
August 23rd, 2007 at 10:44pm By Dennis
Under Car FAQ: Car History: CarFax
There are several avenues of information provided on a CARFAX Vehicle History Report that will help to negotiate a lower price on a used car. One essential piece of information is if the car has been in accident or not. Typically, a seller of a used car might not know or reveal if the used car has been in an accident. By accessing a CARFAX Vehicle History Report and discovering a used vehicle has been in accident, you can use this information as an influential negotiating tool when buying a used vehicle.What is included in the full CARFAX report?
Popularity: 35% [?]
August 23rd, 2007 at 10:43pm By Dennis
Under Car FAQ: Car History: CarFax
Ownership History
· Year purchased
· Type of owner
· Estimated length of ownership
· Owned in the following states/provinces
· Estimated miles driven per year
· Last reported odometer reading
Title Problems
· Has the vehicle been Junked? Salvaged? Rebuilt?
· Has the vehicle been through a Fire/Flood? Has it had Hail Damage? Is it a Buyback/Lemon?
· Is the odometer reading accurate? Has the vehicle exceeded its Mechanical Limits?
Other Information
· Total Loss Check
· Frame Damage Check
· Airbag Deployment Check
· Odometer Rollback Check
· Accident Check
· Manufacturer Recall Check
Popularity: 39% [?]
August 23rd, 2007 at 10:41pm By Dennis
Under Car FAQ: Car History: Car Inspection: CarFax
CARFAX is the leading provider of vehicle history information. CARFAX Vehicle History Reports, created by using the vehicle identification number (VIN), unique to each vehicle, along with title documents, are the key to unlocking each vehicle’s past. This information is a useful tool for consumers when buying any used vehicle.
Popularity: 35% [?]
July 31st, 2007 at 08:38am By Dennis
Under Buy Here Pay Here: Car FAQ
How is “buy here pay here” different than traditional financing? This is a common question asked by people searching for non-traditional car financing options.
Buy Here Pay Here (BHPH) financing basically means there is no third party involved, it is strictly a car loan offered through the dealership on their terms. Because people looking for BHPH typically have a very poor credit rating the only real benefit they receive is that they can obtain a car loan and a car.
Differences with the Buy Here Pay Here financing experience:
- The dealership will examine your credit first before you look at cars
- Once they know the amount of your down payment and how much of a monthly payment you can afford then you only look at cars within those parameters
- Weekly or bi-weekly payments made in person at the dealership
- Dealership may or may not report your payment to credit reporting bureaus
Buy Here Pay Here financing does not differ in many ways from traditional car financing, however, the dealerships has and maintains all the power in the financing relationship. You must be prepared to make the necessary trade offs that come with BHPH in order to get the benefit of owning a car.
A site for Auto Financing is an excellent place to begin your search for car financing options.
Popularity: 19% [?]
July 31st, 2007 at 08:38am By Dennis
Under Buy Here Pay Here: Car FAQ
If you are looking into non-tradtional car loan options you need to know the risks of using a “buy here pay here” car dealer? This type of dealership is not always a bad option, but it can be and you need to prepare yourself for potential pitfalls.
Buy Here Pay Here Risks:
- Very high (sub-prime) car loan rates
- The dealership fails to report your ontime payments and your credit score does not improve
- Not all BHPH dealerships are ethical and they might sell you a lemon on purpose
These are all very important risks for you to consider and you must do your homework.
You need to know if you can afford an inflated APR. You must demand that the dealership report your timely payments to credit reporting agencies otherwise your credit score will not increase. You must ensure that the dealership is legitimate. Call the Better Business Bureau in your area to check if consumers have reported problems at a dealership you are considering.
Buy Here Pay Here dealerships are sometimes your only option left to get a car. This fact makes it essential that you prepare yourself for the risks involved in doing business in this market.
Auto Financing is an excellent place to begin your search for car financing options.
Popularity: 17% [?]
July 25th, 2007 at 08:14pm By Dennis
Under Buy Here Pay Here: Car FAQ
Buy Here Pay Here (BHPH) loans from used car dealers have many drawbacks and potential pitfalls if you are considering this option. However, if you have a very bad credit score, Buy Here Pay Here dealerships might be your only option to get a loan to purchase a car. Another important benefit is once you begin making payments to your BHPH dealership they can report this credit agencies (many do report and many do not), and this will improve your credit score. However, you must ask the dealership before securing the loan if they will report to the credit agencies. If this is a key component of the deal get a guarantee from them that they will report your timely payments to Experian, Equifax, and Transunion. If you are currently trying to save money on a car loan a site like Auto Financing can be a great help to your search.
Popularity: 19% [?]
July 25th, 2007 at 08:13pm By Dennis
Under Buy Here Pay Here: Car FAQ
You know you want to try to get a car loan at a Buy Here Pay Here (BHPH) dealership, but how do you find these car lots that offer this service?
Discovering these Buy Here Pay Here lots is not as easy in the “Information Age” as it could be. There is no quick search you can do that will list all the BHPH dealerships in your area. You might need to try the tradition methods such as the following:
- If you drive past dealerships you might see “Buy Here Pay Here” written on the windshields of cars for sale.
- Another term dealerships will use is “We Finance.”
- Calling local dealerships
To save time and money when getting a car loan you can try a site for Auto Financing.
Popularity: 19% [?]
Previous Posts