Most car sales professionals are honest, hard-working people with a job to do. Unfortunately there are a few who fit the bill of the “stereotypical” car salesman and will do everything they can to sell you a car. If you apply for finance through the dealer, this just gives the car salesman another tool to use against you as leverage. Instead, walk onto the lot with online auto loan quotes in your hand and you may be surprised at the difference in how you are treated.

Credit Report Shenanigans

Of course you would never shop for cars without pulling your own credit report, right? Well some people do and that gives the dealer a chance to tell stories.

They’ll tell you how you have a terrible credit score and then act like they are doing you a favor by giving you a loan at all. Of course they will have to charge you a higher APR and possibly additional fees for the terrible risk they are taking.

Understand that they will tell you this even if your credit score is perfectly fine.

Your Loan was Rejected

You sign papers and drive off, thinking you own a new car. Then a couple of weeks later, the dealer says the financing fell through and you have to come back in. They’ll hit you with higher payments, refinancing fees, and all kinds of other nonsense.

Unless you lied on your application, the dealer knows whether you qualify for the loan or not before he lets you off the lot. Do you really think he’s going to let you drive off in a $25,000 piece of merchandise otherwise?

Applying for a Loan by Accident

Even shoppers armed with online auto quotes aren’t immune to loan scams. The car salesman may tell you that he needs to pull a credit report because of Patriot Act reporting requirements. You might even notice the form you are filling out is titled “Application for Credit.”

The Patriot Act does not require a credit report or your Social Security number so don’t be fooled into applying for dealer financing. Your name and driver’s license number should be all they need.

Lies About Online Car Loans

Some car dealers are so threatened by online auto loan quotes that they will tell you anything to get you to abandon them in favor of dealer financing.

One of the common lies is how all online car loans are scams and their checks will bounce. Yes, there are a few bad apples among online lenders, but they are generally easy to spot. Most companies that offer online auto loans have been in business for years and are just as reputable as your bank or credit union.

The best way to protect yourself against these and other loan-related scams is to get your online auto loan quotes before going to the lot. That way you know what you have qualified for and don’t have to worry about the dealer using your loan against you.

Buying a car, whether new or used, online options can be a great way to save money, time, and find a fantastic deal. Unfortunately, it can also be an easy way to fall prey to potential scams and problems that an in-person evaluation might otherwise catch.

If you’re planning to purchase a car online, keep reading for 4 great consumer protection tips that will help you make your purchase both hassle free and save you money.

1. If Buying New, Understand All the Costs

While customizing a brand new car online can be fun and seem exciting, you’ll often pay a lot more than the Manufacturer’s Suggested Retail Price (MSRP) when ordering a new car directly from the manufacturer.

For example, let’s say you go into a dealership and buy a new model car right off the sales floor without any factory customization or specifications. You can often negotiate a price that’s lower than the MSRP, and you’ll save big on factory delivery fees. Meanwhile, ordering a customized car online and then having it shipped to the dealership could cost you thousands of extra dollars.

All-in-all, the additional expenses of online customization may be worth it to you, but you should at least be aware this is what you are facing.

2. Understand Border Restrictions

If you’re buying a used car online and it’s going to be crossing over a country border, understand before making a transaction that you’re going to have to pay and deal with customs. You can hire independent customs brokers that will handle all your paperwork and fees, but their services come at a premium.

Try a website like MyBorderPro.com that will calculate all the estimated duty, tax and shipping costs associated with moving a car from one country to yours.

3. Factor In Shipping Costs

Most online car purchases need to be shipped or freighted to their destination. If you live in Oregon, for example, think about the associated shipping costs before you buy that car in Virginia. A good deal may not be so sweet once you add on $500 in freight costs.

One viable option to counter some of the shipping costs (if you can afford the time) is to make the trip yourself. Either purchase a one-way flight to the automobile’s location or drive there with a trusted family member or friend and both of you can drive each vehicle back home.

4. Understand Your Auction Options

Before you buy a car through an online auction, make sure you understand all the terms associated with making that bid. For example, eBay offers up to $50,000 in protection against certain types of fraud, but only in specific situations.

In those cases, you are protected if

* the car is never delivered
* the car is stolen
* there is a lien against the car
* the VIN or actual vehicle is not the same as described
* the seller did not provide a title or registration
* the car was not disclosed as being salvaged or flood damaged and was discovered to be a salvaged vehicle
* there is an odometer discrepancy of more than 5,000 miles, or
* the vehicle needs repairs that were not disclosed and total more than $1000.