Car loan scams are dreadful and can turn your otherwise happy life into a misery. Identifying a scam before it happens is the best safety precaution ever. To outsmart the sophisticated mechanisms set in place by scammers, you must be precautious and always make bold decisions before taking any step. When applying for auto loans in New Mexico, here are some of the deadliest scams ever to avoid.
The Yo-Yo scam still remains the wildest threat to car buyers hunting for financing. It’s impossible to escape once you are trapped into this scam. In this scam, unscrupulous car dealers will agree to your loan terms, ask you to pay the down payment only to call you later and tell you that your loan application was not approved. After that, they will force you to accept their new loan terms. If you don’t, you will end up losing the money you deposited for the car purchase. The best way to stay safe from the yo-yo scam is to ensure that you keep off untrustworthy car loan providers.
Asking for an upfront fee is against the car loaning principles and rules. While some genuine loan providers do ask for an upfront fee to process your loan, more often than not, this is a trick used by unethical loan providers. It’s a scam that will trick you to pay for a certain amount of money only for the lender to go mute soon after you send the money.
No genuine loan provider promises to approve your loan. If so, there will be no need for stringent loan application requirements. There will be no need for the lengthy loan application process and long waiting time. You will only need to call them and tell them you need a loan and in no time, the money will be loaded into your bank account. Any loan provider who promises to approve loans should be avoided by all means. That’s a trick to trap you into paying money for your loan to be processed. Stay off every lender that gives you the surety of approving your loan in the next few minutes since they are likely a scam.
The solution to all car financing scams is to apply for your car financing from one of the best Credit Unions available in your area of residence. Credit Unions are non-profit and will rarely scam you to pay for anything to get your loan approved. Although, there are still some scam Credit Unions, getting scammed by these organizations is almost impossible if you are careful. All you need is to be smart in your search and ensure you only settle for well-known and credible Credit Unions in the area you live. For those living in New Mexico, We are known and trusted all over the New Mexico meaning we deliver to the needs and expectations of our customers.