Though financing is a very common practice for car buyers, the Federal Trade Commission indicates that auto financing through a dealership could mean that consumers become subject to deceptive and complicated practices.
According to The Associated Press, new car buyers can sometimes get so caught up with their new purchase that they overlook the importance of negotiating the interest rate, add-on services, and other costs that can significantly increase the loan amount, therefore making people pay much more overall for their vehicle.
A series of FTC-sponsored round table discussions revealed that auto financing through the dealership can include a “complicated, opaque process and potentially involve unfair or deceptive practices.” The end result can feature the consumer accepting terms and services he or she doesn’t want or need.
You can protect yourself from these potential bad practices by being aware and thorough when discussing auto loans with a dealership – read documents, ask questions, and find the small print.
When you’re ready to refinance, we’ll be here to help.