How not to buy a car
Filed under: Ripoffs and Scams, Transportation
Check out the video below for the results of a Dateline investigation into one car dealer's slimy sales practices. Here are 2 tips for how to avoid getting taken at the car lot based on the clip:
Don't negotiate based on payments: When you're buying a car, keep your eye on the total amount that you're paying, not the monthly payment. If you can't get super low-interest financing, consider paying for a car in cash. If you can't afford to pay cash for a car, you have to wonder whether you're buying more car than you can afford. The young lady in the video thought she was getting a good deal when she negotiated a lower payment but the dealer extended the terms of the loan by 12 months, meaning she was paying thousands more for the car when she thought she had been a shrewd negotiator.
Don't lie on your loan application: This one seems obvious but it's pretty common. First, lying on a loan application is a felony in some cases. Second, exaggerating your income to qualify for a bigger loan is a great way to get yourself in over your head. So don't lie. Watch the video for a good cautionary tale.
Don't negotiate based on payments: When you're buying a car, keep your eye on the total amount that you're paying, not the monthly payment. If you can't get super low-interest financing, consider paying for a car in cash. If you can't afford to pay cash for a car, you have to wonder whether you're buying more car than you can afford. The young lady in the video thought she was getting a good deal when she negotiated a lower payment but the dealer extended the terms of the loan by 12 months, meaning she was paying thousands more for the car when she thought she had been a shrewd negotiator.
Don't lie on your loan application: This one seems obvious but it's pretty common. First, lying on a loan application is a felony in some cases. Second, exaggerating your income to qualify for a bigger loan is a great way to get yourself in over your head. So don't lie. Watch the video for a good cautionary tale.
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Reader Comments (Page 1 of 1)
4-18-2008 @ 11:43AM
Dave Kinnaird said...
Seems to me after watching your video that you did not explain or display all the math. The way I see it, if she took the $280.00/72 Payment equalling $20,160.00 VS $360.00/60 Payment equalling $21,600.00, she would have saved $1,440.00. Was she not looking for a lower payment in the first place?
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