When purchasing a second-hand car, it is imperative to find out whether the particular vehicle has any outstanding loan against it since ignorance of this fact may lead the customer to lose both the car and his funds. This normally happens when people sell off their cars without paying up their loans thus increasing cases of auto finance frauds.
Easy ways to avoid getting into this scam
It is possible to buy a car having a warranty after carefully reviewing whether any extra payments need to be made to keep that warranty. This can be simply achieved by sending a letter to the dealer. Cars bought from renowned dealers usually have such a warranty.
It is always advisable to get the service records of the vehicle in question in case the odometer fails to match the condition of the car. Any discrepancy in facts is enough reason to let go off the car.
Since new cars are normally quite expensive, the demand for used ones is steadily on the rise. The dealers often take advantage of this situation and the smart buyer should check online for the current prices of the models. However, purchasing a car online comes with the added costs of shipping and delivery charges that escalate the budget. It is always better to take a loan from the bank when it comes to paying the dealer instead of getting a loan from them. Credit unions and banks are known to give far better rates than dealers as far as auto financing is concerned.
Car financing is plagued with the problem of fraud and falling prey to this is an ever-increasing possibility. Car buyers are being warned regularly to take care not to become a victim of the car finance scam which has increased by leaps and bounds particularly due to the recession. A seller receipt cannot legally protect the buyer in case the car has outstanding loans against it and more often than not the automobile records do not have vital financial information regarding the vehicle. In such cases, the financing authority may even confiscate the car if a loan taken against it has been defaulted upon.