1. Almost every word that comes out of an auto salespersons mouth is false - Remember that anything said to you over the phone or in person is not worth the paper it’s written on. Unless the stated terms or price are written in the contract, in black and white, they are not factual. An example of this would be calling a dealer and getting a price quote. The next day you go to the dealer and somehow no one remembers that quote. In situations like these it is best to have the quote emailed to you. This way there is a paper trail that can be followed should they not recall giving you the quote in the first place.
2. Their financing options are better – The best thing to do when shopping for a car is to secure your financing before you go to the dealership. This is essential because if your financing is secured you don’t have to be forced into a loan on the dealer’s terms. Often when people go to a dealership without a preapproved loan they get pushed into loan they cannot afford. They also get pushed into purchasing an automobile that is more expensive than they need or want. When you are preapproved you already have your terms set, you already know what you can afford, and you already have an idea of what you need and want.
3. Backup financing is a requirement- This is a common misconceptions many dealers will lead you to believe. They will tell you that in order for them to do the paperwork for the sale they need to submit all of you information for a backup loan “just in case” they don’t receive the payment from your preapproval source. This is not true. All that is required in most of these situations is a purchase order to your lender. Once the lender receives and approves the purchase order they will issue a check with the exact amount to the dealership. It is important to remember that when the dealer runs your credit they are doing what’s called a hard credit inquiry on you. If they do it more than once, it can lower your credit score and can remain on your credit report for up to two years.
4. They will tell you they can submit all the paperwork online to your lender, or they will tell you to submit it all electronically through the dealers system– This is not true. You can go straight to your bank or loan provider and show them the purchase order. This is sufficient enough information for them to issue the check to the dealership. The dealer does not have to submit things electronically to your funding source. Instead they should give you a full purchase order (contract) to take to your lender. Electronic submissions by dealers can void your original preapproved contract with the lender or bank.
5. They will tell you everything is ready just come pick it up and drive it away – Once again, the dealer is giving you the idea that it is a done deal. You need to carefully and thoroughly inspect the vehicle before signing any of the final paperwork, accepting the keys and driving away. If you feel anything is amiss you need to point it out immediately and have it all addressed before you take final delivery of the car.
The Legal Eagles Inc.