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I'm paying cash, why does the dealer want me to fill out a credit application?
Dealers tell people it is required by the Patriot Act to monitor cash. It's one of our Top 10 Car Dealer Scams. Many businesses dealing in large amounts of money are required to bounce your name off the OFAC list to make sure you are not a banned person. But it does not require a credit check to do this, they do not need your SS# to verify your name, all they need is your name. Some buyers tell me they convinced the dealer to relent. Did you put down less than 20% on your new car? You better consider gap insurance
If you put down less than 20% on your new car loan, you should get Gap Coverage from GapInsuranceQuotes.com. Most people refer to it commonly as "gap insurance", and most insurance brokers don't even know what it is. Don't bother buying it from car dealers, they mark it up big time to a retail $500-$700 price, then finance it into your new car loan with a high APR reaping even more from your wallet for the next 5 years. The good news is you can get Gap Coverage at the "wholesale level" online for less than 1/2 the car dealers, bypassing the car dealers. If you owe $20,000 on your car, and it's only worth $16,000, you're upside down. If you total the car, or it's stolen, your insurance company gives you $16,000, you must come up with $4000 immediately to pay off the bank, plus you have a $500-$1000 deductible from your car insurance company! Gap coverage protects you against this. The better ones cover up to $500 of your deductible as well. Online Auto Loans: Getting the lowest Auto Financing Rate
According to the Consumer Federation of America, car buyers are often overcharged by 3% on their loans at the dealership, which can add $1000 to the life of their loan. Your best sources for new car financing are auto loan sites such as Capitol One Auto Finance (who I used in 2004 and it was smooth as silk. Read How I Saved $5500 Buying my new 2004 Lexus GX470 SUV for more info) and HSBC Auto Finance. With the lowest online auto loan rates, they usually beat dealers, no application fees or down payments. Your new car loan is approved in minutes. Get your online auto financing quotes, compare to dealer auto financing, use whoever has the best car loan interest rate. Online auto loan rates are the standard for dealers to beat. Use online car loan payment calculators and choose your best auto financing.
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