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Auto Dealership Finance Scam

So, you’re buying a car. You’ve made it through the tedious comparison shopping, completed the necessary research, and even navigated the often stressful negotiations with the salesperson. By this point, you’re probably tired, the kids are getting restless, and you’re ready to just sign the papers and go home. But before you do, be sure to stay vigilant. The finance office, where you’ll finalize the deal, can be one of the trickiest parts of the process.

It’s easy to feel relieved when you finally step into the finance office. It may seem like smooth sailing, but many car buyers are blindsided by the dealership’s financing terms that are offered. Suddenly, you find yourself with a much higher monthly payment or a longer loan term than originally planned. While the sales process can often be transparent, the finance office operates differently. This is where many dealerships make their money, and they’ll use every trick in the book to ensure they profit from your financing deal.

1. Stay Alert and Guard Your Interests
At the dealership, everyone, from the salesperson to the finance manager, focuses on one thing: making a sale. Never let your guard down. Salespeople are always motivated by personal incentives, even if they claim they don’t earn a commission on a sale. The finance office may create a comfortable atmosphere to make you relax, but stay cautious. Often, the finance manager is not a financial expert, but someone trained to close deals using persuasive tactics. Their goal is to maximize the dealership’s profit, so be ready to handle these interactions carefully.

2. Understand Your Credit Score Before You Arrive
Before buying a car, check your credit score to avoid dealerships using your lack of knowledge to manipulate loan terms. Without an up-to-date credit history, dealerships may offer you a loan at a higher rate than you deserve, or worse, a rate that seems great but turns out to be too good to be true. Some dealerships may offer a low rate to entice you, only to change the terms after you’ve signed the papers, leaving you with a much higher interest rate than expected.. Always review offers carefully, and get a second opinion from Freedom Credit Union for better rates and options.

3. Secure Financing Through Freedom Credit Union
Secure financing before visiting the dealership to ensure you get a fair deal. At Freedom Credit Union, we offer competitive rates on new and used vehicles. Our goal is to support members, not profit from them. By coming to us first, you’ll know your interest rate and budget. With financing in hand, you can negotiate confidently, focusing only on the vehicle price.

At Freedom Credit Union, we make the financing process simple and straightforward, so you don’t have to worry about hidden fees or unexpected rate increases. If the dealership offers you a financing deal, feel free to take the offer with you and bring it to us for comparison. We’ll be happy to review it and see if we can offer a better deal that works in your best interest.

Remember, even seemingly small differences in loan terms can add up over time. For example, a $50 higher monthly payment may not seem significant at first, but over the course of a 60-month loan, that’s an extra $3,000 you could be paying in interest. Would you rather that money go toward your family’s future or the dealership’s bottom line?

By working with Freedom Credit Union, you can rest assured that you’re getting a fair, transparent loan offer that puts your needs first. Don’t let the finance office take advantage of you—let us help you make the best choice for your financial future.

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