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Archive for August 23rd, 2009

Best Tips For Avoiding Car Refinance Scams

Whenever we go on buying a new car from the dealership we might face many scams which offer by the dealer. Get some tips on how you can avoid the refinance scams that the dealerships force you through. Better check for more information before you consider buying a new car. Here are some lists where you can go and collect the information you require.

How do I know how much money that I have to pay for the new car? What are the things that I have to calculate when I pay the car? Purchasing a new car from the dealership leaves you open to dealership scams but what about when you need to refinance your car loan?

Many of the scams are the same as you will encounter when buying a car. Here are the best tips for avoiding any of the refinance scams that dealerships force you through.

Get your own credit score and bring it with you to the dealershipDon’t pay a cash deposit for your financing loan because if the deal goes bad you can’t get your deposit backDon’t apply for a car loan until you have been employed for at least 6 months if you are a recent college graduateApply for your loan online so you can avoid getting ripped offLearn to fix your credit before you apply for a loan. Get your credit score to at least 680 first.Pay off your credit card debts before you look for a new carIf you have recently moved wait 6 months before applying for a loan. You addresses are always verified. If you move a lot they will not trust that they can keep track of your whereabouts should you make late payments etc.Having been approved for a loan in the past helpsDon’t get a cosigner for your loan because often times you will find that the deal is solely in the other person’s name

Whenever you are considering getting a new car you should be sure to bring all of the information that will help you to get the best deal you can.

This will all be included in your folder. Here is a list of all of the information that you will want to include in your folder.

A copy of your credit report from www.Truecredit.comNew car purchase prices for the cars that you are considering from www.autousa.comAccurate pricing data rebates tips and incentive from www.FightingChance.comCredit preapproval in writing from www.eloan.comInsurance quote that cover the coverage that you want on your loanUsed car blue book that has used car information and market valuesExtended warranty quotes from www.warrantydirect.comCurrent loan rates that are in your local paper

When you go into a dealership you want to know all of the pricing and costs of the car that you are looking into buying as mentioned earlier.

You should know the manufacturer’s cost and the dealer’s cost. You need to calculate the cost that the dealer paid for the car and then make a reasonable offer to him if you want to get somewhere. You should also know that the dealer’s price is not the invoice price from the factory. You should know that the dealer’s cost is much lower than the factory’s cost.

In order to make a fair offer to a dealership you need to learn to read a factory’s invoice. Here is what you can expect to find on the factory invoice.

Base model of the car on itAll of the options packagesDestination chargeHoldback and dealer flooring help

Quick Tip: DO NOT confuse the invoice with the MRSP window sticker because they are not the same.

It is better to clear your loan before applying for a new loan. Bringing all this information with you will literally cut the legs out from under the dealer. It shows that you are one step above the various scams that you will encounter. Calculate the cost that the dealer paid for the car consider that the cost from the dealer is much lower than the factory’s cost this will help us to offer a better price.

About the writer:  This article is written by Anna josephs writer of the website Best Cheap Used Car . This article is published only for the educational and information purpose.