26 November 2015
The convenience, comfort and class that come with driving your own car is an experience few people if any would want to forgo. However, if you haven’t fulfilled your credit obligations in the past, chances are you have a bad credit profile which may potentially hinder you from buying used cars for sale in Melbourne. In as much as a low credit score isn’t a desirable thing, no one has a right to take advantage of you in the process to owning your car.
Many people with low credit status in Melbourne have fallen into booby traps laid by unscrupulous dealers, middlemen and financiers with a target to rip them off. This article contains invaluable information to enable you to escape these baited traps and scams to successfully buy a used car in Melbourne.
Check Your Credit Report
Knowing you have a low credit rating is not enough; you should dig deeper into picking the exact details of the score. This will help bar shady dealers who may want to take advantage of your ignorance to compound the magnitude of your score –related problems and probably hike the cost of credit. The best approach we advise is for you to get a copy of your credit report preferably from all the three leading credit bureaus Veda Advantage, Dun and Bradstreet as well as Tasmanian Collection Service and go through it item by item before shopping for your car.
Scrutinize the Make-Up of the Interest Rates
Some used car lenders may offer you loans at extremely low interest rates. Instead of jumping into the deal, you should look closely at the terms of the credit facility and verify if the rates are genuine. Some interest rates are merely introductory and with time, they balloon making your payment costly and unaffordable. Read the fine print and raise a red flag when you see a hidden agenda.
Watch Out for Packaged Payments
Taking advantage of the fact that some shoppers looking for a used car for sale in Melbourne focus mainly on the monthly installments as opposed to the actual price of the car, dealers may pack in products such as GAP insurance and extended warranties that you didn’t ask for and don’t offer any benefits to you. Read through the financing contract with your dealer and discuss the details of the payments.
Beware of Extra Fees
With a view to getting an extra dollar from you, lenders and dealers may charge you fees of all sorts including late payment fees, origination fees, administrative fees or even early payment fees. These fees may amount to hundreds of dollars making your financing plan expensive in the long run. Ensure that any fee which you will be charged is clearly documented and communicated to you at the beginning of the contract.
Source Financing from Reputable Lenders
In as much as unscrupulous dealers and lenders are all over the marketplace, there are also genuine and reputable lenders applying their trade in Melbourne and other cities within Australia. The best way to finding these lenders is to research online, check company profiles from consumer protection agencies such as the Better Business Bureau (BBB) as well as read online reviews and ask for referrals. Establishing the trustworthiness of a lender will go a long way into ensuring that you enjoy your car without worrying about future financing problems.
In addition to the above, understanding the used car Melbourne market particularly how it operates and the players in it such as private sellers, licensed motor car traders, auction houses and certified used car dealers is important. It will help you get the right car from the right dealer at the right financing. Rent 2 Own Cars is one of the trusted brands throughout Australia being accredited with all required licensing and customer protection policies.