Trade in
It may already be hard enough to make ends meet and consumers certainly do not need to deal with the headaches and credit nightmares perpetuated by scam artists. A recent controversy in the car industry as sparked troubles across the nation and has left consumers scratching their heads.
The controversy involves car dealerships scamming the consumers who use their old vehicles as trade-ins for a new vehicle. Typically, a consumer who wants to reduce the cost of the new vehicle will trade in their old vehicle to receive a monetary discount off of the price of the new car. The dealership will take over ownership of the old vehicle and pay off any remaining balance of the consumer's loan. The dealership can then make a profit by selling the used car to other consumers.
However, the deal becomes a scam when an unsavory dealership fails to pay off the loan. Instead, the car is allowed to sit on the car lot until it is ultimately reposed by the loan company. When the vehicle is repossessed, the loan becomes defaulted and the consumer is left to deal with a huge negative credit situation.
So, what do you do to prevent the same thing from happening to you? As clich as it sounds - GET IT IN WRITING. Make certain the dealership has created a document or added an amendment to the standard purchase agreement, outlining the terms of the trade-in for the old vehicle. Many consumers worry only about the numbers and payment amounts they see on a vehicle purchase agreement and fail to read the fine print. Before stepping off the car lot, make sure you are aware of what is contained in the agreement and what you are signing. If you do not agree with any piece of information contained in the agreement, clear up the matter before signing and before leaving. Once you drive off the lot, you will be held responsible for whatever the agreement states.
If you plan to use your old vehicle as a trade-in, be prepared before you even go to the lot. Research the value of your car so you will know what a fair trade-in price will be before you start negotiations. Take a peek at the dealers reputation through online reviews and through the Better Business Bureau to make sure nothing shady has gone down in the past.
It would also help to pre-qualify for an auto loan so you will know exactly how much you can afford to pay, before getting yourself involved in another credit nightmare by missing payments. The more prepared you are going in, the less the likelihood you will get scammed. When you consider the small amount of time it takes to prepare yourself to make a large purchase such as a vehicle, versus the amount of time, energy, and money it would take to put up a legal fight, you'd be wise to do your homework first.
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