Author: Rick Li
Applying for a bad credit car loan is usually the last resort for many people, due to their past financial or personal misfortune, many Canadians today are in debt beyond the point of no return. When applying for this type of loan, you don’t have to be mistreated by your dealer, or worse taken advantage of. After years in the automotive industry I am not proud to share with you some of the tricks dealerships use to make more profit from you the consumer.
Signing a credit application is the first step towards taking out a car loan. Many people today are still unaware of their credit score or purchasing power. This situation results in dealer taking advantage of the customer by telling them their credit score is less than minimum requirement, and additional warranty or insurance is required for loan approval. Not all insurance coverages are false, but majority of the product that is added on afterward is purly for the purpose of profit making with very little practical value. If you read the fine prints correctly and carefully you will notice these types of insurance and extended warranty is almost completely useless. And it will have very little to do with getting you approved for your car loan.
There is also the product of VIN etching on to the vehicle, there are few companies out there today offering this service. From Protector Plus, to Global I, these types of add ons has virtually no value. However many of them are sold for as much as $400 per vehicle, and to add insult to injury many car manufactures today such as Honda has VIN etching as standard equipment coming from the assembly line, so any additional product is a complete waste.
Make sure you deal with a reputable dealership, especially in bad credit car loan providers. Make sure the business is not fly by night, call them to find out if there are real sales people answering the calls. Make sure they have an inventory of vehicles on hand, and they are not a broker who will need to make additional profit from you by passing you to a real dealership.
This article is brought to you by Auto Credit Financial Canada, we are Toronto’s top bad credit car loan provider. For more information on the subject of bad credit car loans, please visit us online at http://www.autocreditfinancial.ca
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Auto Credit Financial Canada