For a long time I had an idea to write an article about how dealers “cheat” when selling used cars. Yesterday’s situation with my potential clients was the last straw …
How not to lose money when buying used car
- Miracles do not happen! If everywhere a car costs, for example, $18,000, and you are offered for $14,000, believe me, this difference will be “stuck” in your contract by any means!
- ALWAYS read the documents you sign very carefully. If you do not like something, consult with independent experts.
I’m talking about the sale of cars by non-official dealers and its subsequent financing!
This situation is for people who buy a car for the first time, who do not have a credit history or SSN!
My job is precisely to save you from the arbitrariness of dealers! Give you a wholesale price, save your money, time and nerves!
If you think that I am an intermediary and you can buy cheaper from a dealer! Is it not true!
Auto brokerage business works differently here. I always stand on the client’s side and protect you from unnecessary overpayments when buying a car!
What is the actual standard problem ?!
You see a low price in an advertisement of a dealer from the 7th road (State 7 Road), usually cheaper than other dealers and cheaper than I offer you from official dealers! You come, “fall in love” with the car. They say that your loan, or rather its absence, is not a problem, “we have a bank that will take you, do not worry, you’ve came to the right place”! You are happy with the car, happy that everything is so simple and … LOSE VIGILITY! And then everything begins …
First, your credit application is sent to all banks with which the dealer works, you get from 10 to 30 credit inquiries that kill your credit history for the next 2 years! Secondly, they start to raise the first payment for you, since supposedly no bank takes you anymore (although 10 minutes ago everything was so perfect), in that moment you back to the ground, realizing that there is probably no other way, and the broker , with whom you spoke, also said that downpayment would be needed (but the broker was more expensive, he wanted to “warm up” to us) agree to finish all this as soon as possible, because you have been hanging out in this dealership for half a day already … They are in a hurry to congratulate you that everything is fine, the bank agreed, we persuaded them and lead you to sign the documents with the financier!
You bargained already for sooooo long before! You were told by a smiling salesman that everything is included, the price is $14,500, you have to give $2000 and your payment will be $ 500 per month. It suits you and you are happy that finally all this will end and you will leave in 5 minutes with your car and even save so much …
Naturally, you sign everything without looking at the trust of the seller and looking into the honest eyes of a pleasant financier in a suit. Yes, of course, you check that the documents contain the payment in exactly $ 500, not $ 501! But nothing more … And you go home!
And don’t forget, as a rule, the interest is much to big, but they assure this is not a problem at all, in six months you will very easily refinance your loan at 3-7%)))
And when you come home, you start re-reading the documents that you signed and … sorry for my French, but fuck!
Your debt to the bank is $ 26.000 !!!!! The car was sold to you for $ 18,000, and not for $ 14,000, plus they sold additional insurance and guarantees that were absolutely unnecessary in your case, clocked up all sorts of incomprehensible fee, although they said that they did not have a dealer fee, but there was a restocking fee, etc.
ALWAYS ALWAYS ALWAYS read what you sign! Do not be fooled by the price below the market, do not take cars from dubious dealers on the 7th road! Please try to consult with an independent professional before buying! You will not be able to return the car back after signing all the documents, no matter what the dealer tells you.
P.S. I ask you to excuse me all honest dealers who sell cars! Of course, there are a lot of good and worthy dealerships, not all such “bastards” …