Pitfalls of car loans through car dealerships
Almost every bank today is ready to issue pitfalls of car loans but this type of lending is chosen less often. Many people who decide to apply for such a large loan prefer to use the offers of car salons. Before choosing it, you should get acquainted with possible pitfalls.
Pitfalls of car loans: Discounted cars
Salons can attract customers with various promotional offers to increase sales like the pitfalls of car loans. For example, it is quite common to offer a car at a reduced cost. Everyone wants to buy transport cheaper if there is such an opportunity, and therefore such offers find their borrowers.
If you do not hurry and make a real assessment of the loan for the auction model, it becomes clear that the borrower will pay the full cost of the car. This happens due to the fact that the lender sets an increased credit rate or there are additional commissions. Therefore, discounted cars should only be purchased with cash.
Car loan without overpayments and down payment
Some car dealerships offer promotional programs with zero upfront and zero overpayments. At the same time, they guarantee a quick conclusion of a car loan transaction with a minimum set of documents. The offer for the borrower is very attractive. A serious person who sees such an action will be wary of such an offer.
Here the scheme of deception is easy enough to open; just compare the cost of a promotional car with the cost of a similar model in some other salon without a discount. Transport under the promotional program will be much more expensive since the cost of its interior was already laid down all the profit that the financial organization should receive from lending. Often, such transactions offer a short loan term, and therefore the amount of mandatory payment will be impressive and will not be feasible for every potential borrower.
Car credit in the salon according to your passport
There are programs among the offers of car salons that offer to take a quick loan by submitting only a passport. Keep in mind that the cost of the loan depends on the number of documents. The more securities the borrower can submit, the lower the interest rate they are offered on the loan. When making transactions on a passport, lenders take a lot of risks and raise interest rates very high. When considering the option of getting credit in the cabin for 15 minutes on one passport, you should be prepared for a serious annual percentage, which can increase the cost of transport several times.
There are a number of car dealerships that have signed a contract with certain financial organizations, and they completely refuse to cooperate with any other banking organizations. Usually, the salon enters into a contract with two or three banks, which significantly limits the choice of lender. In some cases, the choice is completely absent, since the car salon cooperates with only one banking institution.
Many people choose a salon based on the ads they see or hear. The person who applies to the salon is calculated on the advertising interest rate. That’s just a lot of financial organizations in advertising indicate a nominal percentage, and when making a contract indicate a completely different percentage. You only need to believe the loan agreement, which must specify the full cost of the car loan.