If you are like many people, you probably have considered taking advantage of one of those “cash for junk cars” advertisements that seem to pop up on the internet every now and then. These advertisements can be a real money making opportunities, but it’s important to realize that this type of car purchase can be dangerous. Before you do any of these deals, here are some tips to help protect yourself from unscrupulous sellers and bad service providers.
The first thing to remember is that there are many unscrupulous individuals online that make money by selling junk cars to people who want to purchase them. It is a fast way to make a profit and to obtain used vehicles without spending a lot of money to do so. The first way to avoid these types of scams and work only with a trustworthy company is to conduct some research online and search for cash for junk car stories. This will help you weed out the real scammers from the honest companies.
Keep these red flag warning sign signs in mind whenever planning on taking out a loan for junking your vehicle and then you will be in great shape. These warning signs include not having any kind of written contract or paperwork explaining what happens if you fail to pay off your loan. Also, make sure you know exactly what the monthly payments will be and how many installments you need to make before the loan is due. You can ask the seller questions, but you should also look at their customer service records and whether or not they offer any kind of a no negative on loans or car loans.
Another red flag to look out for is a negative cash loan. A negative cash loan will force the seller to take the vehicle back and it will result in you losing your vehicle. If you happen to receive such a letter, don’t go back to the seller or stop paying off the loan. Contact the Better Business Bureau or local police to report the problem. Most lenders will do whatever is required to get rid of the vehicle once they learn that there is bad history.
The next warning sign to look out for involves getting a loan without having any type of credit check or cosigner. Any type of credit check will show up on the credit report, and it will make you look like you are a poor credit risk. This is another reason to find a company with a legitimate and solid reputation because lenders won’t give you this type of money if they think you are a bad credit worthy. They will require a form of proof that shows you have a steady job and a source of income.
When you take out a loan for junking your vehicle, be sure to pay the full amount upfront or the company won’t get paid. Don’t allow them to add fees or interest. Be aware of hidden costs like the fact that the lender has added an extra fee just to make more money. It is often hard to find a good deal like this, but it can be done.
In addition to a hidden cost, you might be asked to pay a fee for a guarantee of the amount you will be paid. This is a way for them to get a percentage off the total price of your vehicle. This means that if you don’t pay the entire amount you agreed to pay upfront, they can take your vehicle and sell it to someone else for a profit.
It is a good idea to get a few referrals when you’re looking for a deal like this because it will show other people what a trusted company’s reputation is. If you choose a trustworthy lender, you should be able to get a decent price. As long as you avoid the common pitfalls, you should be able to find a great deal on a great car.