Yo-yo auto financing makes you a dealer’s puppet. If you do not read the contract properly, you may end up making a hasty decision. Choose a reliable dealer or opt for online auto loans to buy the car of your choice.
Yo-yos are not only for kids. Sometimes, you can also get tangled up in the string!
What is Yo-Yo Auto Financing?
Buying a car is a stressful experience for those with bad credit scores. And when dealers hand the keys over, just to snatch them back again, it feels like a joke. A joke called yo-yo auto financing. It can be explained in one line: Dealers turn shoppers into buyers just to give them two options at the end: pay more for the car or give it back.
A dealer permits a bad credit car buyer to take possession of the car before the financing process is complete. Few people call it ‘spot delivery’ as the dealer sells the car to the buyer on the spot. After a short period of time, when the financing falters, he calls the buyer back to the dealership. Then, the dealer demands a high rate of interest and a high down payment.
How does the Dealer trap you?
Under yo-yo auto financing, the dealer tries to trap you. As your credit score is bad, you choose to fall prey to yo-yo auto financing. The dealer cancels the negotiated deal and offers you a worse deal. He plays different tactics which are stated as under:
>>He may threaten to repossess the car and destroy your credit score.
>>He may claim that your credit score is worse than you thought (even when you have a decent credit score).
>>He may claim that the lender has disagreed to the original terms.
The bottom line is that the dealer can change the terms of your original contract and force you into agreeing to the new terms.
Precaution is better than cure. Start saving today for your dream car. It is better to pay in cash for your car. Make payments towards your unpaid loans to improve your credit score. Buy a used car instead of a new one to ensure an affordable car purchase.
And if you still need financing remember these tips:
>>Visit the dealer and finish the auto financing process before finalizing the car.
>> Choose a reliable dealer or opt for online auto loans.
>>Shop around for the auto loan from a reputed bank or a credit union.
>>Shop for reliable and affordable used cars.
>>Don’t be drawn to dealership lot signs that say “Bad Credit? No Worries!”
Yo-yo auto financing shows the vulnerability of bad credit car buyers. So when you visit the dealership lot, it is important to understand the contract terms. Don’t make the final decision under the dealer’s pressure. The dealer will try to use you as a puppet by playing different tactics. But, you can act smart and avoid getting caught in the lies. Wait until your credit score improves. Buy an affordable used car today and save money for buying your new car in the future.
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