Tips to Getting a Better Deal on Auto Car Loans

The new financial reform legislation from the government makes sure that car dealers can no longer try the kind of oily tricks they used to be recognized for before. While you are more protected these days than you used to be, there still are areas where you would be better off watching your back. Almost all auto car loans in this country are applied for not at a bank or another lender, but at a car dealer's. And the new consumer financial protection Bureau has no oversight over them. Basically, as far as new auto car loans go, if it comes from a car dealer, you're on your own. There are just the FTC and the other consumer protection groups - and they haven't been nearly enough. You don't even have to the Truth in Lending act protecting you, for instance. And protection is something you really need when you're dealing with lenders involved in auto car loans. The Better Business Bureau deals with more complaints to do with this area of business than any other. Here are a few tips on how not to get ripped off when you step into the dealership for help financing a new car.

Dealers don't make loans out for cars themselves, of course. They get loans from banks and other lenders, and mark them up before they pass them them on to you. They can mark those loans up by three percentage points as far as the law isconcerned. Of course, that would be daylight robbery. But it does go to show how they will raise their rates as much as they could possibly get away with depending on what a given individual customer will tolerate. The best idea then, would be to keep the loan process separate from the car buying process. You can get a much better deal shopping around at the banks and other local lenders. When you walk into the dealership, you'll have a list of offers that you can get from elsewhere, and you can ask the dealer to match them.

One of the most profitable ways in which dealers make profits on auto car loans is through the sale of add-ons. They'll try to sell you extended warranties, and extras like a VIN etching to make a little extra on the sale. Often, they'll add those on sneakily, without even telling you. It's up to you to read the paperwork closely to make sure that there isn't anything unnecessary you are signing up for. And speaking of paperwork, make sure that you don't buy a car to drive home under the condition that the finance is approved later on. You'll end up a week later getting a call from the dealership that says that your finance fell through. And then they will try to sell you a higher-priced package. Steer clear of any moves that could place you at a disadvantage in the bargaining process.