Being taken advantage of during the car buying process is a real fear for a lot of individuals. Worrying that you'll be misled or lied to, sold a lemon, or overcharged can take all of the fun out of your experience. And yes, buying a car can be fun. I've outlined a few ways that you can identify a car buying experience you don't want to be in. If you're looking to buy a car without getting scammed, follow these tips.
When it comes to making a vehicle purchase, your credit score is a pretty important number. That is unless you're paying for the vehicle in full at the time of purchase. But, since the majority of vehicles are bought through financing, most buyers will use their credit score to secure their finance agreement.
Whether or not you have a good credit score will directly affect what interest rates you'll be offered when financing a vehicle purchase. Lending agents use a buyer's credit score to determine how likely they are to follow through with repayment. With a good credit score, lenders assume you will pay them back as agreed, and with a low or nonexistent credit score, lenders assume there is more risk associated with lending to you.
Buyer's remorse is one of those unfortunate experiences some people go through after major (or minor) purchases. You may have even experienced it yourself. Imagine a time when you made a purchase decision, only to reflect on that decision later on and wish you'd done something different. That's buyer's remorse in a nutshell. Now, while this feeling is completely natural, there are ways to protect yourself from it.
When you hear about being "upside-down" or "underwater" on a car loan, that's in reference to negative equity. Negative equity on an auto loan means that the buyer owes more than the vehicle is worth. Since vehicles often depreciate faster than they are paid for, vehicle buyers often go through a period of negative equity at the beginning of their loan term.
Paying an arm and a leg just to establish your credit score isn’t the only option for this generation of young adults. For teens and 20-somethings looking to finance their first vehicle purchase, having a parent co-sign can make the process a lot smoother – and much less expensive. I regularly work with parents who are struggling to decide whether or not to co-sign their kids’ vehicle purchases, and this is what I tell them.
Phone: (844) 966-8900 - 9:00 PM
Phone: (844) 966-8900
Phone: (844) 361-8146
Phone: (844) 361-8146
Phone: (844) 361-8147