Car loans, the insider secrets: Dubious deposits

Car loans online, the insider secrets: Dubious deposits

As we have mentioned before in other articles ignorance is the breeding ground of fraud. What you don’t know others can certainly exploit to rip you off. This is true for all industry and sectors but even more so in the world of car loans. Why? Buying a car and financing it combines two dangerous components, a complicated finance system that includes straightforward loans with many other fees and extras available at the car dealer and the emotional component of buying a car. There are few goods that will excite and give the “new toy” feeling so many of us get a kick from. This explosive cocktail of complexity and decisions based on emotion makes it easy for car dealers to take you for a ride, pun intended.

Buying a car and getting a car loan is such an expensive and financially important decision it is worth doing a little research and finding out what the insider secrets and tricks that can be used against us.

Auto financing, Car Loans and Dubious Deposits.

One simple fact should guide you dealings with car dealer salesmen, insurance salesmen and any kind of salesmen for that matter, THEY WORK ON COMMISSION. Every decision, suggestion or move they make is likely to be conditioned at least in part by the kickback they are hoping to get in their monthly paycheck. Admit it, if you were them you would also, all things being equal, try to put forward the finance option that gives you the biggest profit. This does not mean that car dealers are all thieves, like most of us they just want to make a decent living. However like in all walks of life they are unscrupulous characters to avoid. This series of articles will try to uncover some insider tricks and secrets it pays to know about.

One “trick’ that has become rather popular is the “obligatory deposit scam”. This is how it works. The naive customer arrives at the car dealer and starts asking for prices. The sleazy salesperson gives him a patronizing smile, cocks his head, looks around in a supposedly meaningful way and asks the customer: “So you’re serious about buying a car”. Why yes, you answer. Well then there won’t be any problem, he continues. Unfortunately some customers just come to waste our time and get information for our competitors (or any other lame excuse). And here comes the key move. “So we have had to make it policy for customers to leave a cash deposit as a show of good faith before we provide prices, allow test drives and the likes.

As you likely guessed the need of a deposit is completely ridiculous. Don’t fall for it. If you are even unfortunate enough to meet this scam, just smile back and look for an honest car dealer, they do exist. You are the customer, there is no need for a display of good faith. If anybody needs that display it’s you from the car dealer.