Let’s face it: loan sharks give the car financing industry a bad name. As predatory lenders know that subprime borrowers are basically at their mercy, they love taking the liberty to make the agreement heavily one-sided and rip off anybody who’s hopeless enough to grab their deal. It’s a sad truth, but it doesn’t mean you’re destined to make do with them.
There are many bad credit card dealers sincerely wanting to provide financing without any malice whatsoever. It’s your job, however, to find them before loan sharks find you.
This is how you can tell a car dealer has good intentions:
Offers Solicited Deals Only
One way to know if a lender is predatory in nature is when it contacts you first. Unlike legitimate businesses, auto loan sharks intentionally look up prospects in public records, especially in areas where financial distress is present. They would call you or send you emails, offering you too good of a deal you wouldn’t dare pass up.
Honest car dealers, on the other hand, simply market their services and wait for their phones to ring. You come to them, and not the other way around. Malco Motors says a trusted company is a member of professional organizations, such as the Better Business Bureau and the American International Automobile Dealers.
Advertises Correct Contact Information
A company that has nothing to hide has no reason to fake their information. Loan sharks pretend to be legitimate by posting a phony physical address and contact details to mislead you.
Always be skeptical about what you see on their site, and do some research using public records or customer advocacy websites to see if the information the dealer shares to everybody is true.
Does Not Sugarcoat the Negative
During the negotiation, you can distinguish upright dealers from deceitful lenders by being straightforward. The former would answer your questions directly while the latter would rather focus on the positives. As a bad credit borrower, you deserve to get insightful responses over vague explanations to aid your decision-making.
Obtaining a subprime auto loan could either help rebuild your credit or put you in a deeper financial hole. Do everything to avoid loan sharks to get your much-needed vehicle without putting yourself in a seriously unfavorable situation.