Using Dealer Financing to Buy a Used Car? Be Careful!

There's a reason why the phrase "used car salesman"trade-in value? How much down payment must I
conjures up certain images - and that reason doesn'thave? How much will I be financing after trade in and
completely revolve around engines and transmissions.down payment? Are there other fees, such as credit
Car salesmen are masters at getting people financedinsurance? What Annual percentage rate will I be
to purchase - one way or another. The trouble is, thepaying? How many payments will there be? What's
way might not be a benefit to you, even while theythe exact amount of those payments? What's the
claim it is.total cost of credit? Include interest, fees, etc.
So, be prepared. Before you even consider visiting aAnd last but most definitely not least: Is this the final
car lot, get your credit report and check your scores. Ifdeal? When I drive off your lot, are we finished?
they need some improvement, take the necessaryThat last question seems odd, but it's an important one,
steps, because the better your credit scores, thebecause this is the spot where unethical dealers pull
better interest rate you'll get on that car.the "bait and switch."
Don't wait for the dealer to check. For one thing, if theThey'll send you home with a car, give you 2 or 3
score tells you there's going to be a delay, that inquirydays to fall in love with it, and then call with the bad
will harm it further. Secondly, not all dealers will tell younews: The lender refused the deal. But it's OK - don't
the truth about your score. Remember, the higher thepanic. Your salesperson has made a heroic effort and
interest you'll pay, the bigger their income.found another lender who will approve the loan.
OK, now you know your score and you've decided it'sOf course, the interest will be slightly higher, and you'll
high enough for you to go forward. Write down thesehave to pay a small fee, but hey! You've got your car!
questions and make sure they're all answered to yourDon't fall for this. Unless the dealer can show you who
satisfaction before you sign anything. Remember, if itthe lender is, and unless you can see documentation
isn't in writing, and signed, it doesn't mean a thing.that they've approved the loan - tell them you'll be
How much does this car cost - including taxes, license,back after the financing is approved and the
dealer prep - everything? How much am I getting for atransaction is final. They can call you when it's ready.