Getting a new car can be an exciting and significant milestone in your life; what you don't want to do is get locked into a deal where the terms will have you living in fear of a bank account sitting in the negative. From on-the-spot financing, rejected applications, higher and lower annual percentage rates, the murky waters of signing a car deal with a shady business could have you full of spite and regret.
Doing your research will come in handy, but here's a list of standard scams to steer clear of.
This one can be one of the more sinister scams in the car buying industry. If a shady car salesmen contacts you after you've purchased the car with an 'even better' financing package, don't fall for it! For example, if you're paying $450 a month, the salesman might present you with a deal of having that payment be $405. He'll tell you all it requires is coming back in, signing more papers and you'll be good to go. While this sounds like the deal you've been waiting for, what he isn't telling you is that the terms of loan get extended, and the APR (annual percentage rate) goes up in the deal, which adds to the total cost of the vehicle over the financing period. Usually, it's best for you as the buyer to do your research before making a purchase, find a financing package you are comfortable with and stick with it!
The next scam could mean you're getting a vehicle that has had a rocky past.