Getting rid of your old car is one of the oft forgotten pain points of buying a new car. Most people essentially have two options, either they can sell their car privately or they can trade it in to the dealership. The problem with how dealers value trade-ins is the built in costs of the dealership. Many of us just want to offload our old cars as quickly as possible and the surefire way to do that is to simply trade it in – even if it means less cash in our pockets.
While almost all of us feel ripped off after we trade in our old cars, not all of us should. This article explains how dealerships value trade-ins and why they do so in this manner so that you can better evaluate if you are getting a good or bad deal. So let’s get into it.
Lots of legitimate good deals are available from private sellers, but there are also plenty of bad guys looking to rip you off. Be smart about which ads to pursue.
The big advantage to buying a used car from a private party, rather than a dealer, is you’ll most likely save money on your purchase. The disadvantage is you could lose $1,000 or more in a car-buying scam. While most used-car sales conducted by individuals are perfectly legitimate, there are used car-buying scams out there, and they are on the rise — even for so-called local sales. This is because so much of the business has an online component. In fact, consumer complaints for car sales scams increased 25% last year, according to the Internet Crime Complaint Center, a U.S. government agency.
Here are five tips to avoid a used car-buying scam if you are shopping for a used car locally:
Used-car purchases often begin with an online advertisement, and, as a result, an increasing number of scams involving online car buying seek to dupe unsuspecting shoppers.
Online car-buying scams are also becoming increasingly sophisticated and, therefore, harder to detect, according to the Internet Crime Complaint Center, or IC3, a partnership between the FBI and the National White Collar Crime Center. From 2008 through 2010, the IC3 received nearly 14,000 complaints from car shoppers who have been targeted or victimized by an online car-buying scam. Victims lost $44.5 million over that period.
The scam typically starts with a used car that is being sold on a reputable website for automotive advertisements. The car is priced below value with some plausible story for the rock-bottom price, according to an IC3 consumer bulletin. Common reasons for the low price include the seller suddenly moving for work or for military deployment, or the seller needing cash quickly because of [...]
Who Has Better Loan Rates, Credit Unions or Banks?
If you’re shopping for a house or a car, you typically run the full gamut of price checks and comparisons to make sure you get the right fit. The process of finding a loan should be no different; after all, it costs money to borrow.
As you search for the best deal possible, you’ll find that, in general, credit unions offer better loan rates. That means you’ll owe less in interest over the life of the loan. Here’s what you need to know to stretch your dollar when it comes to borrowing.
Loans cost money. And the difference of just a few percentage points can translate to hundreds of dollars in costs. The area where credit unions such as Horizons North Credit Union have the greatest advantage is in affordability of car loans. According to the National Credit Union Administration’s most recent data, the [...]