Obtaining a used auto loan puts the borrower at the mercy of the lender. Without being careful, a dealer can easily take advantage of the buyer to reap more than they are legally entitled. Dealers can take this advantage either because the borrower/buyer has weak bargaining power or scanty information that doesn’t disclose hidden charges. A loan applicant has several fundamental rights which if exercised can make sure that you get the fairest deal. The following are some of them:
Haggling Power
Banks have fixed interest rates for their loans. A borrower seeking credit facilities has no say over the rates. However if you are seeking credit from a car dealership, you have the right to haggle. Sellers naturally will quote a higher than normal rate anticipating the customer to bargain for a cut. If you don’t bargain, you end up paying interest rate that could be avoided. When dealing with car dealership bargain to the limit and maximize on the available opportunity to determine what you pay for the credit.
Fringe Benefits
Some of the extra benefits a buyer or borrower is entitled to include warranties and after sale services. If you are not careful though, a crafty car dealer may want to maximize his profit from these rights. Most car dealers will want to sell to you unnecessary extended warranties. They will require you to pay a bit more to obtain longer period warranties for the vehicle. Standard car prices will include warranty period that is just enough for your vehicle. Avoid being tricked to pay extra money for extended warranties.
After sale services too are nonnegotiable. You are entitled to these services up to an agreed period that is usually indicated in the car documentation. Do not be tricked into paying extra money for after sale services.
‘Your’ Car
The moment you enter into an agreement with a car dealer to give you a used auto loan, you are the rightful owner of the car in question. Make sure you are in procession of vital items like the car keys and ownership documents before making any down payment. People are known to have paid for non existent vehicles especially in used car deals.
Value for your Money
How well do you know the car that you are obtaining used auto loan for? Before making any down payments insist on trying the car that you are purchasing. Involve the services of a trusted mechanic or a servicing firm to test the vehicle for you. Make any down payment only after assurance from an expert that you are getting the real value for your hard earned cash.
Tags: auto loan, used auto loan