mortagesandforeclosures

by James Shaw

It's not a secret that when it comes to the automotive world - and it's financing - it's a buyer's market. Between bankrupt automakers and desperate car dealers looking to get their extra inventory off of the lot, now has never been a better time to pick up a new car - especially if you need to apply for car credit to do so!

However, before you go out hunting for that new ride, it's important to note that there are a lot of enticing car credit offers out there - but many of them are too good to be true. Here are some of the most common offers that you're likely to see, and why you should pass them up for a better car credit deal:

Buy One Car, Get The Second Car Free. This sounds like the ultimate deal: purchase one vehicle, and you'll get a second one free courtesy of your car dealer! Sure, this might sound like an incredible deal at first, especially if you have a big family that could use the second car; but be forewarned before you sign that contract. Dealers won't let you pick the second car of your choice, and will instead require you to take a large SUV or another vehicle that doesn't sell well. Additionally, that second car is by no means free: dealers will tack on hidden fees and costs to ensure that they get some return on the car. If you're purchasing that first car with the dealership's car credit, you'll be hit with a high-interest loan that will really stretch your monthly budget.

Car Credit At Low-Interest Rates. Dealers are starting to get desperate - and many of them are offering car credit loans at rock-bottom interest rates. Does this offer intrigue you? Before you head out to your local dealership, be warned: you'll need a perfect credit score in order to be approved for this offer. Besides, these attractive loans are often only available with only certain vehicle models, which means that your dream car might not be covered by this deal. To get the best deal on your car credit, apply for competitive loans from your bank or lender before approaching the dealer for financing. This way, you can ensure that you're getting the best loan rate for your credit score.

Drive Off The Lot. Many dealers are promising potential customers that they'll be approved for car credit on the spot, meaning they can drive off of the lot that day. Yet if you peruse through the fine print, you'll see that the terms of the loan can change - and you might see your interest rates go up only a few weeks later.

Don't fall for this trick; instead, be sure to get a competitive loan offer from another bank or lender before you approach the dealer for financing. Another important note: never let the dealer know that you intend to drive the car off of the lot that day. You want to have the power in negotiations - and this will only put your dealer in a superior negotiating position!

About the Author:

Alexander Burnet writes for a specialist loans provider based in the UK. If you are looking for loans today then we can help.

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