What Car Dealers Don't Want You to Know About Bad Credit Auto Loans
Are you considering taking a bad credit auto loan in Miami? If so, then it is important that you go through this article before making any decisions you will live to regret later on.
There is a lot that happens behind the scenes at most car dealers. But even with the internet at our disposal, most of us will never know anything about how car dealers operate. The truth is, even the most reputable of car dealers will always take advantage of a borrower with bad credit. In fact, many dealers even believe that it is these bad credit borrowers that allow them to make the most profits. In this article, I am going to answer some of the most common questions people ask dealers but never get any answers for:-
1. Why am I only allowed to see certain cars?
Although salesmen will give you multiple excuses for this, the truth is, they only show you the cars on which they can make the most money. They may use excuses like, these are the only cars you can afford or these cars fit the lender's guidelines perfectly, but now you know the truth. There are quite a few other cars which are well within your budget as well, but the dealer will just not make the same amount of profit by selling them to you. This is why dealers prefer selling to bad credit customers. They rely on the fact that you will be happy with any car you get. And unfortunately, most of the time, this tactic works. See https://www.autoloanmiami.net for more info.
2. How much does this car cost?
A car dealer will never give you a straight answer for this question. If you didn't have a bad credit rating, you would have probably been offered a price which is even lower than what the salesman has on his list. But in this situation, you will most probably hear the salesman tell you that the car is worth how much the bank decides. This basically means that even if the bank approves you for a loan which is higher than the value of the car, they will not ask the bank to reduce the loan, they will just increase the cost of the car. This isn't very fair and is just another reason why it is best for you to get a pre-approved bad credit auto loan before visiting a car dealership to buy your new car.
3. What about my trade-in?
The dealer didn't tell you how much the car you are buying is worth, why would you expect him/her to give you a price for your car? Even if you tell the salesman that you want nothing less than a certain amount for your trade-in, they can just increase the sale price of your new car and while you may think you are getting a good deal, the truth is, you aren't.
But you can avoid all of these problems by simply getting pre-approved for a bad credit auto loan before visiting a car dealer. This will put you in control of the deal and will also allow you to negotiate with the dealer to a certain extent. So what are you waiting for? Start preparing your loan application today.