You might have heard of the terms that the article is going to discuss – Yo-Yo financing and 4-Square. Let us see how we can keep our readers away from the sale trick that often befools people.
If you are applying for a quote on free auto loan, make sure you have done your homework, so as not to fall prey to the wrong people.
The car buyers who have poor credit fall prey to this trick. The dealers will sell you the car on the spot and before the financing ends. Then the sales executive will give you a call to say that you loan application does not have the approval and you have to come down to apply for a new loan with high interest rates.
For this reason, most of the customers get advice from their financial masters to get a pre-approved loan from the online lenders or the credit unions.
When you sit with your dealer to calculate the cost on the loan he or she may divide the sheet into four quarters: one for the trade-in price for your car, next for purchase price of the new car, third for the down payment, and the final quarter for monthly payments.
In this process, the salesperson tries to draw your attention to the monthly payment. Stop doing that, once you entangle in the payments you have to embrace a high rate of interest. Do not lose your focus. Consider both rates and monthly payments, as this will help you to keep your loan payments on track.