Looking for a new car? Luckily for you, it’s a buyer’s market out there. Thanks to bankrupt automakers looking to get rid of extra inventory as soon as possible, now has never been a better time to go shopping for that dream car, especially if you’ll be using car credit to buy it.
Like with most special deals, some of them are truly too excellent to be right! Here are the most frequent offers that dealers are using to lure customers in, and why you should run away from them:
Buy One, Get One Free. So what’s the deal with this deal? By purchasing one vehicle, dealers will throw in another for free. It might be a fantastic option for those larger families who could use the second car; but, be careful before you sign the contract. You won’t get a choice in the second car, and dealers are likely to force a large SUV onto you, which is one of the most unpopular cars on the market. Additionally, that second car isn’t exactly free: dealers will tack on hidden fees to ensure that they’re getting something for their troubles. If you’re buying that first vehicle with car credit, you’ll be stuck with a loan at a higher interest rate to cover the hidden costs of your “free” second car.
Low Interest Car Credit Loans. It’s no secret that dealers are starting to get desperate – and many of them are offering car credit loans at next-to-nothing rates. Does this sound fantastic to you? Before you place on your shoes to head to that dealership, you need to possess perfect credit in order to take advantage of these rates. Besides, many of these loans are only available for certain car models, which means that your ideal car might not be covered by these low-interest car credit loans. To get the best deal on your car credit, be sure to get competitive loans from a third-party lender before approaching the dealership for financing. This way, you can ensure that you’re getting the best deal on your car credit!
Drive Off The Lot. Many dealers are promising potential customers that they’ll be approved for car credit on the spot, meaning they can drive off of the lot that day. Yet if you peruse through the fine print, you’ll see that the terms of the loan can change – and you might see your interest rates go up only a few weeks later.
To avoid this sneaky trap, be sure to get another loan offer from a third-party lender before you approach your dealership for car credit financing. Don’t forget: never let your dealer know that you’re looking to drive off of the lot with your dream car. You want to have all of the power in your negotiations!