|
Home
MENU:
Betterthanokay.com Home
Automobile
Resources
Automobile
Articles
Recreational
Vehicles
Debt Reduction
Credit
Cards
Loans
Mortgages
Great Outdoors
9 Ways To Save Money On Car Expenses
Auto Parts Inner Offers Preventive Car Maintenance Tips and Quality Replacement Parts for Ford, BMW, Toyota, Honda Chevrolet and More
Buy or Lease a Car
Car Leasing Secrets: Understanding Residual Values
Car Rims
Financing Your Next Car
How To Never Make Another Car Payment
When Car Repairs Go Wrong
|
Shopping For A Car? Don’t Get Taken For A Ride!
Imagine this ... You're ready to buy a new car. You've done your research on the web at a site like Edmunds.com so you know what the dealer has paid for the model you want. Based on your information you've established your comfort zone for price haggling.
You walk into the dealership, meet with a salesperson, and begin negotiations. At the end of your test drive and haggling, you're confident that you've made the best deal possible. No way you're getting ripped off because this time you are an "informed consumer" unlike when you bought your last vehicle.
One final step stands between you and your brand new "ride" - financing. Your credit is outstanding so you get what you believe is the lowest possible interest rate from the dealership. You drive away in your shiny new vehicle triumphant!
Ready for a dose of reality? According to a new study, there's a 1 in 4 chance that you've been "taken for a ride" by the dealer's finance department, especially if you are female or a minority, by as much as an extra $1,000.
The Consumer Federation of America, a Washington, D.C.,-based consumer interest group, said consumers often pay additional fees in that process - totaling as much as $1 billion nationwide - without realizing they qualified for cheaper financing.
Here's what can happen behind the scenes: a bank approves an interest rate, the dealer tacks on additional percentage points as a kind of service fee and then the dealer and lender split the difference.
To be fair, not every dealer is guilty of this markup. However, enough are involved that many states are now considering new "truth in advertising" lending laws. New laws would require auto dealers to inform customers of the original rate offered by the bank and what the dealer is offering to the customer, after tacking on their additional finance fee.
Shopping around with your bank, credit union or the internet can help you to find the interest rate that you qualify for in a loan. Remember, the auto dealer is in business to sell cars, not to offer loans.
The next time you're in the market for a car, don't just research the model, make, and add-ons. Research fair interest rates as well so that you'll know if you're getting the best rate possible from the auto dealer or if you're being "taken for a ride."
© 2004, www.yourfreecreditreportnow.com
James H. Dimmitt is editor of "TO YOUR CREDIT", a weekly free newsletter. Subscribe to the newsletter by visiting http://www.yourfreecreditreportnow.com. He is also author of “Identity Theft - How to Avoid Becoming the Next Victim!” available at http://tinyurl.com/bc45
jimdim815@aol.com
Written by: James H. Dimmitt
|
Other Articles of Interest:
9 Ways To Save Money On Car Expenses
Gas prices are at historically high levels and the long term trend is indicating more of the same for American drivers. If you operate one or more vehicles,...read more
Car Donation Explained
What can be more noble than donating your old car to charity? You save yourself the hassle of having to sell the old used vehicle outright. You don’t have...read more
Cleaning Latte Stains from Your Car
Coffee stains are by far the most common stains found on the seats and floors of cars today. Most new cars have carpet stain resistant carpets installed from...read more
Factors That Affect Your Car Insurance Premium
Many factors affect the premium you will pay for auto insurance. Each is a statistically based risk for a specific population. The higher the risk associated...read more
Protect Your Car From Road Salt
REQUIREMENTS FOR REPRINT: You have permission to publish this article free of charge in your e-zine, newsletter, ebook, print publication or on your website...read more
Special Offers: Save on quality tires with these manufacturer's promotions available from The Tire Rack.
 |
News:
Active Wheel Could Be Rolling by 2010 (Jan 6, 2009 20:27)
Two small automakers have revealed concept cars featuring Michelin's Active Wheel system, which comb..
Silence as Nascar Testing Ban Begins (Jan 6, 2009 16:31)
Nascar's ban on preseason and in-season testing at its tracks is expcted to save teams an estimated ..
A 'Black Box' for Taxicabs? (Jan 6, 2009 03:46)
As part of a data-collection experiment, the New York City Taxi and Limousine Commission will instal..
Mars Rovers Are Alive at Five (Jan 5, 2009 20:22)
NASA expected its two Mars rovers to survive only three months in the dusty and freezing Martian con..
Dakar Rally Gets Under Way … in Argentina (Jan 5, 2009 16:05)
Carlos Sainz during the second stage of the 2009 Dakar on Sunday. (Gabriel Bouys/Agence France-Press..
|
