What Should You Avoid When Looking for Bad Credit Car Loans?

What Should You Avoid When Looking for Bad Credit Car Loans Intellichoice Finance

Bad credit car loans are your best option in securing car finance with bad credit history at tow. Getting approved for car financing does not only give you access to an automobile, but it also gives you the opportunity to improve your credit score.

Buying a second-hand car would be ideal if you want to have a lower principal amount to worry about. If you would want a high-end car model but at a lower price, a second-hand car in an older model would be the perfect fit for you.

However, there are many car deals available out there. Some are suited for your finances, some are too good but can be true, while others can be a scam. Here are some of the most common car purchasing scams you should be aware of to prevent from being a victim of one.

1. Loss Leader Advertising

This is a common scheme and a very time consuming one when buying a second hand car. The dealer will identify one or two cars, in a particular model, which happens to be the worst in their fleet. This car is the one that has been in the yard for a long time. This car will be advertised at a price below the cost.

When a customer rush in to look around for a car, they can easily place a SOLD sign on the better cars that they have in their fleet and point the client to the least desirable car, the one advertised. This may prompt the buyer to look for something else better, thus giving the dealer the edge by asking the customer to pay more for the better car option.

2. Phantom Cars

Phantom cars are cars that do not exists, or cars that are advertised as automatics but are actually manual transmission cars. For the sake of getting people to visit their dealership and be able to see clients face to face, some dealers would advertise cars that do not actually exist, just to get a potential customer’s attention. When you walk in and ask for the advertised car, they can simply say that they have not updated the website or the advertisement, or the car was already sold to someone else.

3. Low Balling

Another scheme dealers do to gain more in selling a pre-used vehicle is low balling. This happens when a dealer gives you a verbal price that is actually lower than the actual amount a dealer can sell the vehicle. He will tell you that you can get the vehicle for a lower price and should not go over a specific amount. He’ll even encourage you to look around to see other options.

He then brings you around for at least a minimum of an hour, offers you to do several test drives on different car units, will offer you drinks, snacks and will basically tire you out without really putting a specific price tag on the cars you see fit for your taste.

You end up finally with a car that fit your needs at a price you see fair. But then, the shockers comes in. Your car quote excluded certain costs thus ending up at a price higher than you expect it to be. This gets on your nerves, you talk to the manager and then wait for a resolve favorable on your end. But after several minutes feeling stressed out, the dealer says that you cannot close the deal unless you shoulder additional costs. You end up accepting the deal just because you are too worn out, tired or hungry to argue. Almost 80% of car buyers who experience such car selling scheme ends up paying more than they should be, just because they were already too exhausted to argue for a better price.

4. The Lap Dog Trick

So you finally decide to check a used car on a dealership but would want to see if it will cost you less if you visit a different dealership. The first dealer that you visit will tell you that he will match or offer a lower price based on the best price you see by scouting around other car dealerships. You will feel obligated to come back to the first dealership that you visit thinking that he will match or give a better price than the one you already found. At the end, you’ll end up agreeing with the same price or a slightly expensive price tag because you already tire yourself looking for a cheaper alternative.

5. Spraying

Spraying is a car selling scheme also known as “throwing a hand grenade”. In this situation,a dealer will pursue a potential customer up until he buys. If this client pursue in buying a car at a different dealership, the dealer who pursued the client in the first place will make the customer feel bad by saying that he could have purchased it at a lower price. To avoid this bad attitude salesmen can give you if you buy from a different dealership, “accidentally” giving the wrong number during your car scouting.

Knowing these scams helps you avoid these possible scenarios and becoming a victim of these abusive car dealerships. Having a bad credit history should not limit you from getting the best possible car dealership deals out there.

You can repair your credit score and get access to better deals in financing a new or a second-hand car. Read this article 5 Steps in Repairing Bad Credit for Guaranteed Bad Credit Car Loans Approval to learn more.