Choosing an online auto loan may seem like a great way to save some time while reducing the hassle that often comes with applying for an auto loan in person. Unfortunately, it’s easy to run into scams if you look for a car loan on the web. Although online loans may offer some advantages, the many scams can make navigating online lending difficult. Make sure you protect yourself by learning how to identify online auto loan scams when you’re ready to purchase a used car. Here’s a look at some of the big warning signs you need to know.
Warning Sign #1 – They Ask for Upfront Fees
One of the big warning signs that you may be dealing with an online auto loan scam is that the company asks you for upfront fees. You may be asked to pay processing fees, taxes, initial repayments, or other fees by these companies. This should be a warning sign that you’re dealing with a scam, not a reputable company. Upfront fees are particularly suspicious if you’re asked to deposit funds in an overseas bank account or you’re asked for your bank account or credit card information online.
Warning Sign #2 – They Report a Lower Credit Score
Your credit score is often taken into account when you get a loan, and a lower credit score often increases the interest rate you’re asked to pay. However, online auto loan scammers may report a lower credit score to you, hiking your interest rates to make more money. For this reason, it’s always important to know your credit score before you apply for any type of loan. Get your score direction from credit reporting agencies so companies cannot scam you by claiming you have a lower credit score.
Warning Sign #3 – Unsolicited Emails Offering You Loans
Have you been receiving unsolicited emails offer you an online auto loan? If so, there’s a good chance you’re receiving these emails from scammers. Pay attention to the email addresses of those emails. Are the emails from a generic email address, such as a Hotmail, Yahoo, or gmail account? Does the address look like it could be from a legitimate institution, yet it has incorrect spelling? These are signs that the email is probably from a scammer, so don’t respond to these emails or provide any personal information.
Warning Sign #4 – The Lender Doesn’t Have Any Contact Information
If you’re offered an auto loan online for a used car, pay attention to the company’s contact information. Look at their website. Do they have contact information listed? Reputable companies will have a physical address, phone number, and other contact information listed. If you cannot find any contact information for the lender, there’s a good chance you’re dealing with a scam.
While there are many online auto loan scams out there, it is possible to find a good loan on a used car, even if you don’t have great credit. At The Auto Warehouse, we focus on offering reliable transportation and excellent lending options to customers, even if they have low credit scores. Having good transportation is important, and we are a trusted used car dealer that offers in house financing for individuals who have a less than perfect credit history. We are proud to offer a huge inventory of used cars, and we are willing to work with you to get you the loan you need on terms that are comfortable for you. When you are ready to buy a used car, visit The Auto Warehouse to get the auto loan you need.