Getting a fair deal on buying a vehicle has been a topic of debate for decades. Most buyers have to finance their vehicle purchase, whether they buy used or new. Financing is a serious matter, and it’s important that you understand how the purchase of a vehicle works before you buy. This includes not only understanding the responsibility of buying a car and how to talk with the salespeople, but this also means that you need to understand how financing works before you sign the papers.Shopping Around
Any time you make a purchase that requires financing; you should know that your credit is a determining factor. This means that your credit rating will be the one factor that determines your interest rate in addition to the amount of money you need to finance. If you end up with a high interest rate you’ll end up paying more than you want to pay. If you have credit problems, this could mean that you end up paying more than you can afford to begin with. If you default on the loan the lender could repossess the vehicle leaving you with an unpaid balance you are still responsible for and you’ll have a glaring mark on your credit report. The only way to avoid repossession is to file for bankruptcy.What Lenders Should Disclose
Lenders are responsible for disclosing important finance information to you before you sign the papers. You should know the total amount of the loan you will be financing, the APR or total cost of the loan, the number of payments, and any other pertinent information related to the cost of buying the vehicle. Some dealers may offer you particular financing arrangements and offer to let you take the car home once you make a down payment. If they change the terms once you return beware. Make sure that you get your down payment back, and look elsewhere for a vehicle.
If you believe that you have been defrauded by a dealership in any way, you’ll want to consult with a consumer lawyer as soon as possible.