We buy everything online, from groceries to clothing, cars to houses. So, it’s no surprise that it is fertile ground for less than legitimate companies looking for unwary people to take advantage of.
While we work online too, we know not all auto loan providers work in the same way we do. That’s what prompted this post. We have seen a few situations where an online lender seemed too good to be true.
Our Halton auto loan team put together these tips for recognizing a lender to avoid while online.
Warning signs of Halton auto loan companies to avoid
The trouble with less than honourable companies is they hide themselves so well. They have become accomplished at looking just like legitimate lenders.
There are a few warning signs though:
A lender that contacts you – Any lender that cold calls, spams your inbox or contacts you through other means, they may be a lender to avoid. We all perform marketing and outreach but it’s usually with your consent. If you’re being followed around or hassled by a lender, you should avoid them at all costs.
Unverifiable contact details – All financial organizations in Canada have to advertise their business address. If you cannot find the details on their website or in their literature be aware. If they do have a physical address, look it up to see if it’s just a mailing address.
Legitimate lenders will have a physical presence somewhere. If that presence is at all difficult to find, don’t do business with them.
Offering terms before verification – If a lender approaches you and offers a guaranteed loan or a set amount with a set interest rate without even knowing who you are, move on.
No legitimate lender can guarantee a loan and certainly cannot offer car loan terms without knowing more about you.
Application fees – Any lender that says they need a fee up front for a Halton car loan application isn’t worth doing business with. Some lenders do charge fees but this will be at completion or rolled into the cost of the loan. Many lenders won’t charge fees at all.
Any mention of upfront fees is a definite no. Any mention of fees in general should require a long hard look.
Pushy sales tactics – Any organization that uses pushy or aggressive tactics to sign you up should be avoided at all costs. That can include trying to get you to borrow more than you want, to buy extra products like insurance or guarantees and anything not included in the loan.
Some sales people are naturally pushy but know enough about the industry to stop once you say no. Any that company doesn’t listen should be avoided at all costs.
If you need a car loan for any reason, you take control. You do the research and the reaching out. It’s your loan, have it your way. There’s no need to let someone else take control of what is a serious financial commitment.
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!