You didn’t Qualify
Wednesday, July 11th, 2007And the #1 Scam is: “You didn’t Qualify for the Low Interest Rate” or commonly called the Spot Delivery Scam
So how does this scam go? You didn’t check your credit score or arrange a loan before going to the dealer or you saw the LOW interest TV ad. You come to the dealership sign the paper work for the LOW interest rate and drive away in your new car with that LOW rate.. Couple of weeks and many miles down the road, the dealership calls and tells you that you failed to qualify for the LOW rate and the rate is going to be double what you thought. Now if you read the contract there was a “subject to financing” clauses that kicks into effect and it does not work in your favor. Read the Contract because most people thing that the deal is done when you drive away. Now the dealer knows what you qualify for before the deal is ever signed and it with the exception of if you lied about something on your load application. The dealership knows your credit score shouldn’t you? If your credit score is above 680, you should qualify for the lower interest rates. My credit union can pull my credit and approve my loan in less than 15 minutes.
So how do you fight this? Get a loan approval before you go to the Dealership. By securing you own loan ahead of time you avoid all the payment scams, and your purchase will be determined by the price of the car, not monthly payments. If a dealers first question is how much can you afford a month, it’s time to leave. If they try to adjust the Interest rate based on options, get up and leave. If you should happen to finance a car through dealer, then use your credit card for the deposit and for gods sake do not take delivery of the car till the loan is approved.