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Tuesday, September 28, 2010

How to Avoid Auto Dealers Fraud



Buying a new car or a used car is a long term investment. Hence, we have to be aware of the manipulations done by the car dealers. This will help you to save your money and also will prevent you from getting caught in the auto dealer’s fraud.

Tips for avoiding auto dealer fraud are enlisted as follows:

  • Develop and maintain a good relationship with a mechanic. A mechanic provides you the accurate information about different cars, its specific problems, and the manufacturer of the car.
  • Avoid purchasing the car in a hurry. Gather all the possible information about the car and reaffirm that the car purchased by you is a safe and reliable car.
  • Before purchasing a car, check out its price, warranty, and mileage. Beware of the manipulation done by the car dealers. This would assist you to identify any frauds done by the car dealer.
  • Dealers carefully represent that they are in the best interest of the customer and arouse your need of extra features in the car. Avoid opting for such extra features and beware of these techniques of the car dealers.
  • Car financing could be done through banks or credit cards. This would assist you to purchase a car and also have a control on the final negotiation about the car price.
  • Some car dealers offer different types of warranties to its customers. Check out clearly in the warranty papers what exactly is included. Some auto dealers increase the final sales price of the car by including its features and add-ons. In order to be aware of these additions, the buyer should take a copy of the warranty home and read it carefully.
  • Once all the details in the warranty are checked out, then make sure that the warranty is duly acknowledged and signed by the authorities’ representatives of the car dealer.
  • Take a test drive of the car before finalizing the purchase of the car from the car dealer. Check and confirm for yourself whether the car is in good condition. Reassure about the car model with the mechanic, discuss its features, and then decide the final price.

Friday, September 24, 2010

Car Dealers Leasing New Car



Unlike buying a new car in cash or on loan, buying a new car on lease is the most popular way to save the money and grab a new car in lesser prize. Lease payment consists of basically two parts
Financial charge and depreciation charge.

The finance charge is the interest on cost of the car that you have leased. The depreciation part of the monthly payment paid by the customer is the lost of the value of vehicle during the lease term.

Leasing is almost similar to buying; however, this is also true that buyer won't own any thing at the end of the lease agreement. It's a contractual ownership of a new car.

New car dealers always open this option for their customers. Due to lack of money, some time buyers go for lease cars but their actual intention is to buy the vehicle at the end of the lease or before the lease comes to an end. To buy a car on lease is always more expensive than the actual buying of cars.

The financial charges depend on the brand of car. It is always less for the lesser brands and higher for the renowned version of the cars. The resale value of the car depends on the brand. The depreciation is also varying from car to car.

To lease a car is an easiest way to grab a best new car in the market at an appropriate monthly payment. While buying a vehicle, it needs a huge down payment; however, in leasing of car you need to pay some amount of security deposit and service charges.

If some one wants to lease a car this is to be noted that new car dealer will thoroughly check the credit history until and unless they are not satisfied with the economical condition of the buyer, they won’t allow letting the car on lease.