This is a guest blog by Eve Baxton.
In December 2011, nineteen suspects were arrested in New York. These suspects were part of two fraud auto loan schemes. They used straw buyers, with good credits, to purchase luxury cars like Mercedes and Porsche under these schemes. These cars were then rented out to criminals and were used for various crimes. The auto loan fraud, therefore, was found to be linked with serious crimes like the double homicide of two Nigerian nationals. The straw buyers were left with bad credit and were sued by various banks due to unpaid loans and parking tickets on cars, which only apparently belonged to them.
How Can You Avoid Such Scams?
If one wants to avoid an unfortunate fate, similar to that of the straw buyers above, while financing a car purchase, then one should undertake the necessary precautions. Opting for a credible car finance scheme is the most important precaution that must be taken. The reliable car finance scheme is simple and requires no deposit and no fees. A personal finance advisor is also assigned to enhance efficiency and to avoid troubles. Moreover, cars can be bought from any dealer under this scheme. Such a scheme is bound to prevent auto car frauds due to its simplicity and reliability.
Five Car Buying Mistakes People Make:
Not all car salesmen are deceiving. However, one is likely to run into fraudulent salesmen if thorough research is not done. It is easy to be misled by the loan schemes and the convincing power of the salesperson’s reasoning. Five big mistakes that result in a disastrous car purchase, are listed below:
- Credit misinterpretation: Many car dealers classify their customers as ‘not eligible’ because of their poor credit score. The customers do not realize that this holds true only for those with unpaid bills or who make payments well after the due date and that their credit score is not that bad at all. The customers are, therefore, made to pay high interest rates which make car purchase greatly difficult and uneconomical.
- One transaction: Many dealers compile the three transactions involved into one in order to make money. The customers, therefore, pay more than what the car is actually worth, when not paying attention to this trick.
- Unending installments: Some car dealers attract customers by lowering the monthly installments. The customers do not realize that the dealer manages to stretch out the period of the installments by using such tricks. Rather than going with the price, they can pay for the car, customers make the big mistake of going with the payment they can make monthly. Such tricks lead to money making for the car dealers and great money loss for the buyers.
- Changing the deal: Some car dealers give the following news to their customers: the financing fell through. The car dealers skillfully use this trick to change the deal and make the customer opt for a more expensive car. Customers who do not have their financing in their hands fall easily into this trap.
- Additional funds applied to cars: Some car dealers are given cash incentives to sell certain car models. In some cases, the car dealer might apply such funds to the car. Customers who do not research such funding provided on the car they want to purchase, therefore, pay a higher price for the car.
Car dealers misrepresent information and are able to skillfully misguide uneducated buyers. Customers who are assertive are likely to find and identify the tricks involved. Everyone buying a car should know the car they want to buy and the financing alternatives they have. Not all car dealers are dishonest, but care must still be taken. Making mistakes like those stated above effectively lead to a big car financing failure.
Educated customers are those who perform a thorough research before heading out to the dealer. Make use of the extensive knowledge on the web and compile a list of car buying tips. This will certainly help.
Auto loan frauds have unfortunate consequences. They only lead to a never ending loan, a price which the car is not worth, and a high interest rate. One can do better by avoiding such fraudulent car financing schemes which only end in disaster, and opt for reliable and credible financing service, such as CarLoan4U.