Category: Buying A Car

Consumer Reports List of Worst Lemon Cars for 2023

11/29/2023

When considering the purchase of a used vehicle, armed with the right information, you can evade the costly mistake of driving off with a lemon. This term, more than just a colloquial expression, refers to defective vehicles plagued by a manufacturer's defect. We're committed to helping our clients navigate the rocky terrains of the automobile world. Drawing insights from leading consumer reports, we've put together a list of the worst lemon cars for 2023.

Chevy Bolt EUV

The Chevy Bolt EUV has been a topic of concern due to recurring issues with its in-car electronics and electric motor. Many consumers have reported unexpected glitches in the infotainment system and unanticipated shutdowns of the electric motor. In addition, there have been complaints about air and water leaks, which can compromise the vehicle's integrity and safety. These defects can be particularly concerning for a car owner, leading some to consult lemon law attorneys for recourse.

Pacifica Hybrid

The Pacifica Hybrid, while celebrated for its eco-friendly design, has faced recalls stemming from its electrical systems. The vehicles have shown an alarming tendency for their electrical components to pose risks, either by jeopardizing the vehicle's structural integrity or posing a threat to nearby flammable objects. This manufacturer's defect has led to increased attention from Consumer Reports.

Kia Sorento

The Kia Sorento has garnered attention due to persistent mechanical issues. Engine stalling, a particularly worrisome problem, has been reported frequently. Such malfunctions, especially if occurring while on the road, can pose serious safety risks to both the driver and other road users.

Jeep Wrangler 4xe

The Jeep Wrangler 4xe, despite its robust appearance, has faced recalls in recent production years. These recalls highlight potential long-term issues that could affect vehicle performance and safety. From malfunctioning battery systems to concerns about its powertrain, the Jeep Wrangler 4xe has given consumers reason to pause. Those considering this vehicle are encouraged to explore consumer reports extensively and seek advice from lemon law attorneys if they suspect they've received a defective unit.

Subaru Ascent

The Subaru Ascent has been flagged for a variety of mechanical issues. From reports of unpredictable engine behavior to concerns regarding the transmission, this model has found itself under scrutiny. Some owners have even reported minor problems, like infotainment hiccups, adding to the list of concerns. As always, seeking guidance from consumer reports and keeping the advice of a knowledgeable lemon law attorney in mind can prove invaluable when navigating such challenges.

While every vehicle has its pros and cons, it's essential to be informed about potential manufacturer's defects or consistent issues. Should you find yourself with a lemon, don't hesitate to seek guidance from a professional regarding the SC Lemon Law, like Steve Moskos, ensuring your rights and investments are protected.

How to Spot Odometer Tampering When Buying a Used Car

11/19/2023

In today's bustling used car market, getting value for your money is a top priority. However, amid genuine sellers are a few who might try to dupe you. One of the prevalent frauds that car buyers should be cautious about is odometer tampering. Odometer rollback, as it's often called, is the malicious act of altering a vehicle's mileage to portray it as less driven. But how can you, as a vigilant consumer, safeguard against this kind of fraud?

UNDERSTANDING ODOMETER FRAUD

Odometer tampering isn't a mere trick—it's a breach of consumer trust. Odometer readings provide potential buyers with insights into a car's history, helping gauge its wear and tear and its potential longevity. By rolling back the odometer, sellers unfairly inflate the car's market price. This act, which is both misleading and fraudulent, has led many to seek advice from a consumer fraud attorney, such as Steve Moskos.

SIGNS OF ODOMETER ROLLBACK

Inconsistencies in Vehicle Maintenance Records: A clear record should correspond with the car's odometer reading. Any discrepancy is a glaring red flag.
Wear and Tear Mismatch: Excessive wear on components like pedal rubbers or steering wheel, inconsistent with the reported mileage, warrants caution.
Tamper Evidence: Modern digital odometers are tough but not immune to tampering. Signs of forced entry or alterations are indicators.
Online Tools and Reports: Resources like Carfax are helpful in offering insights into a car's history, including past odometer readings.

How South Carolina Addresses the IssueSouth Carolina takes seriously the issue of odometer tampering. State regulations necessitate a detailed vehicle description during title applications. This includes vital information such as its make, model, year, and the all-important odometer reading. With fraudulent acts being rampant, attorneys like Steve Moskos often emphasize the importance of meticulous documentation to their clients.

Misrepresentations, especially deliberate ones, come with consequences. Knowingly offering false odometer statements is not just unethical but also illegal. In South Carolina, such actions can lead to legal repercussions, including substantial fines and even imprisonment.

EMPOWERING YOURSELF AS A CONSUMER

Staying informed is your most potent weapon against consumer fraud. If you're considering purchasing a used car:

Conduct thorough research. Knowledge about the prevalent tricks and scams will always put you a step ahead.
Use available online tools to verify a car's history.
Always seek a comprehensive vehicle report.
When in doubt, consult a professional. Experts, including attorneys who specialize in consumer fraud, can offer guidance, ensuring you make informed decisions.

While the used car market offers countless treasures, it also has its pitfalls. Odometer tampering, or rollback, is among the top deceptive practices that plague unsuspecting consumers. By staying informed, vigilant, and proactive, you can not only spot such frauds but also protect your interests, ensuring that your hard-earned money fetches you the value it deserves.

How to Request Technical Service Bulletins if You Think You Have a Lemon Law Claim

10/16/2023

A Technical Service Bulletins (TSB), in the simplest terms, is a communication from the manufacturer about a known issue or defect in a specific make and model of a vehicle, but one that doesn't warrant a full-blown recall. While they aren't mandates for repair, TSBs guide dealerships and mechanics on how to address and repair consistent issues that owners might face. Vehicle owners can now find some TSBs, or manufacturers communications, for free through the National Highway Traffic Safety Administration (NHTSA). TSBs released earlier than 2012 will not be available through the NHTSA website.

Looking up a TSB is a straightforward process:

Head over to the NHTSA's site.
Enter your car's Vehicle Identification Number (VIN) or look up by vehicle year and model.
Retrieve a list of TSBs or manufacturer communications that apply to your vehicle.

Additionally, you can request a TSB on your vehicle is through your vehicle manufacturer’s dealership or repair shop.

Once you know are armed with the right information, you can begin work on getting it fixed. It's wise to approach a manufacturer’s mechanic since they possess specialized training about the specifics of your vehicle and are more equipped to tackle issues highlighted in TSBs.

So, what happens if the TSB does not fix the problem in your new car? You may have rights under the South Carolina Lemon Law. The SC lemon law is geared to protect consumers from manufacturing defects that can't be repaired after a reasonable number of attempts.

If you believe you have a lemon, notify the manufacturer in writing about the issue; if unresolved, you may need the help of a SC lemon lawyer, like us at Moskos Law Firm, who can assist you with a possible refund or replacement.

For those who discover they've unwittingly purchased a used vehicle that was previously deemed a lemon and repurchased by the manufacturer, it's pivotal to seek advice from an SC consumer fraud attorney who can help.

Having a vehicle that constantly fails to function correctly can be an ordeal. But armed with the right information about TSBs, you're equipped to tackle the challenges head-on. If you need a consumer lawyer or a South Carolina Lemon Law attorney, contact us to find out how we can help.

Why car dealerships are charging above MSRP for new vehicles

1/23/2023

Supply chain issues are affecting everyone, not just consumers. Grocery stores can’t get the products they usually sell, and it’s not unusual now to see signs posted at restaurants warning people that some items may not be available due to low or no supplies. This is even true in the automotive industry, and some dealerships are using this issue to their advantage by marking up the price of their vehicles and not just by a few dollars.

To entice buyers, dealerships often lowered the MSRP, or manufacturer’s suggested retail price, by a couple of thousand dollars, maybe more. This gave the impression that the buyer is getting a real deal. But many dealerships now have jettisoned that practice and are selling vehicles at thousands of dollars over MSRP. Why? Because inventory is lower, and once a vehicle is sold, the wait for another one to take its place on the lot can take months.

While manufacturers aren’t happy with these dealerships’ choices, according to a recent NPR article, there’s little they can do about it as most dealerships are independent franchises and can set the prices they want to set.

Michelle Krebs is an automotive researcher who serves at the executive analyst of Cox Automotive, and she told NPR that this was the first time in her career that she’s seen most dealerships charging at list price or over. That has to do with high demand and low inventory, but also because they can. And sometimes, it’s not just a few thousands of dollars over MSRP. It can be tens of thousands of dollars.

Some manufacturers have even urged dealerships to lower the markups or risk not receiving some of their most desired vehicles. But that hasn’t stopped the markups, and it looks like there won’t be a break anytime soon. So Krebs suggests that anyone looking to buy a new vehicle be willing to practice patience and to go outside their comfort zone, which may mean shopping farther away to get a better deal.

The author of the NPR article found his next truck over 400 miles away from his home but still ended up paying $2,000 over the list price. So, while shopping farther away can lower the price of your next vehicle, for the most part, you can expect higher prices at car dealerships for the foreseeable future.

Carvana has had its second massive layoff this year

12/7/2022

Last month, Carvana, the online car dealership, laid off 1,500 employees, or 8% of its work force, which, according to CNBC, was comprised mainly of corporate and tech departments, although some operational positions were affected as well. Unfortunately, this isn’t the first time Carvana has eradicated positions as in May, the company laid off 2,500 employees, or about 12% of its workforce, citing lagging sales.

This most recent layoff comes after Carvana’s stock plummeted yet again, bringing its overall total down 97% this year alone. Though sales were robust during the pandemic, interest rates have risen, and with fears of an economic shutdown, consumers aren’t as focused on buying vehicles at present.

The layoffs came via an internal email message from Carvana’s CEO Ernie Garcia which was titled “Today is a hard day.” He cited higher finance rates and delayed car purchases as part of the reason for the layoffs and added that the company had “failed to accurately predict how this would all play out and the impact it would have on our business.” Also, in the email, Garcia talked about how the world had continued to get tougher, and that painful choices had to be made to adapt.

The company’s problems have escalated since its rapid growth last year, and now, with $6.3 billion in debt and its stock price dropping like hail, it’s uncertain as to whether Carvana can recover from this freefall. It’s something to take note of if you’re in the market for a car as fewer people on the job can affect everything from customer service to financing.

The Car You Just Bought Was Repossessed by the Dealership. What Can You Do?

3/31/2022

You’re excited about your new car. You signed the paperwork, were handed the keys, and drove away from the dealership believing everything was in order. Because obviously, you wouldn’t have been given the keys and the okay to leave if everything wasn’t okay, right? You were told you were financed and even given the paperwork which you have in the glove compartment of the car. (Reminder: Take that into your house and review the documents to make sure they are all there.)

Then, fifteen days later, or maybe even longer, you get a call from the dealership telling you to bring the car back. What? What are they talking about? It seems the dealership was unable to secure financing so they need the car to be returned. They say they could possibly work out another deal, but until then, they need the car. But you have paperwork showing you were approved for financing. But that doesn’t matter, according to the rather brusque sales manager who is insistent that you return with the car.

But you’re not taking the car back, not when you have proof you’ve been financed. A few days later, maybe less, you walk out of your office at work to discover your car is missing from the parking lot. You call the dealership and are told they now have it in their possession. You were given the opportunity to bring it back but failed to do so. The dealership had no other choice but to repossess it.

Now what? You made a down payment the dealership is telling you is non-refundable which means you’re without the money and the car. You’re going to lose your job if you don’t have a way to get to work. But the dealership has cut off all communication with you. You’re officially on your own. You think there’s nothing you can do. But that’s not entirely accurate.

Depending upon all the facts of your situation, you may have recourse. Back in 2011, the Federal Trade Commission published a white paper “Deal or No Deal: How Yo-Yo Scams Rig the Game against Car Buyers” that details how dealerships work this type of scam, which is called a yo-yo transaction. If you’re in this situation right now, you may want to read the paper and ask yourself if anything in it sounds similar to what is happening to you. If the answer is yes, your next step should be to call a lawyer.

Now, that phone call isn’t a guarantee you’ll get your car back, but it’s the first step in being proactive. Don’t assume there’s nothing you can do until you’ve spoken to an attorney, specifically one familiar with consumer law.

What is a lemon vehicle?

3/20/2022

Way back in 1960, Volkswagen created an ad with the slogan “We pluck the lemons; you get the plums.” The ad was about the manufacturer’s high quality when it came to inspecting cars before they left the factory and focused on an inspector’s discovery that the chrome strip on the glove compartment on one car was blemished and had to be replaced.

Would that Volkswagen be considered a “lemon” in South Carolina? Under South Carolina law, a new car is considered a “lemon” when it has a manufacturing defect that affects the safety, value, or use of the vehicle. If that defect shows up within the first twelve months or 12,000 miles of a car’s purchase, whichever one comes first, then the manufacturer must fix the vehicle for free.

You can’t just arbitrarily decide your vehicle is a “lemon” and return it to the dealership expecting a full refund. Whether the problem you’re having with your car fits the above criterion is something a court would have to decide.

While you’re reading this, you might be thinking, what about my 2001 car that I just bought from the used car dealership? It needs a lot of repairs, and the salesman didn’t tell me about any of this. Doesn’t that mean the car is a “lemon”? Technically, yes, the car is a “lemon”, meaning it’s a bad car, but it isn’t a “lemon” under South Carolina law because it isn’t a new car.

Does that mean you have no recourse if you’ve purchased a used car? Not at all. An experienced lawyer knows laws that apply to used vehicles and can help guide you in the right direction. Just because you’ve purchased an “unofficial lemon” doesn’t necessarily mean you’re stuck with it.

So, whether you’ve purchased a new “lemon” or a bad car, talking to a lawyer is your best bet. The laws involving vehicles are complicated and can be quite confusing. It just makes sense to get advice from someone who has read and understands those laws.

5 Tips to Choose a Cheaper Car to Insure

4/18/2021

Expenses with a new car can add up quickly. Car insurance is one thing that everyone has to have, but there are ways to cut the costs which are based on three things – your personal demographics (gender, age, driving history), where you live, and what type of car you purchase.
Check out our tips below to find a vehicle that will be less expensive to insure.

Check the Safety Ratings of the Vehicle
To really save on car insurance, it’s best to purchase a car that has a high safety rating. Vehicles that have more safety features are more likely to qualify for lower premiums and discounts. Be sure to look for recalls on any vehicle you are considering, as some insurance companies won’t insure cars that have recalls on them.

Safety ratings for cars are easy to find. Five stars is the highest safety rating, and one is the lowest. Remember that insurance companies also consider how much damage your vehicle could cause to another car which could increase your liability premium.

Avoid Sports Cars
Any car that has a high performance engine and other speed features are higher to insure. Insurance companies consider you to be more of a risk on the road, as drivers with sportier cars tend to drive faster and be in more accidents. Also, sports cars cost more to replace and repair.

Avoid Luxury Vehicles
Expensive luxury vehicles always have higher insurance costs. The very high repair and replacement costs can increase your insurance premiums significantly. Models such as Rolls Royce, BMW, and Mercedes-Benz have the highest collision and comprehensive insurance losses.

Be Aware of Popular Models among Thieves
How likely it is that your vehicle could be stolen is also plays a role in what you will pay for insurance. Certain vehicles are more popular among thieves. In 2019, the five most stolen vehicles were the Honda Civic, full-size Chevy trucks, full-size Ford trucks, the Honda Accord, and the Toyota Camry.

Compare Insurance Rates before you Buy
Once you have narrowed down the list of cars you like, contact your insurance company and get insurance quotes on each of them. Insurance costs can vary by a few hundred dollars a year depending on the vehicle you purchase. Always shop for insurance the same way you shop for your new car.

While researching your next car to buy might be time-consuming, you could save a lot of money in premiums each year.

Three Vehicles Consumers May Want to Avoid

3/29/2021

Purchasing a new vehicle is an exciting time, but it can also be very nerve wracking. No one wants to spend a large amount of money on a car that may be unreliable. Consumer Reports magazine has a long history of sharing opinions on vehicles. They recently released their ratings for 2021 vehicles. The following three vehicles had low ratings.

2021 Volkswagen Atlas

There are many mixed feelings about the Volkswagen Atlas. People who have purchased one have reported problems with the climate system, engine minor, exhaust system and the emissions system. Volkswagen’s usual warranty is four years/50,000 miles but because of the known issues, many who purchase it also purchase the extended warranty to have protection for 150,000 miles or up to ten years.

The Atlas does have a huge cabin space and an exterior that is very stylish. However, the concerns with reliability are keeping many buyers wary of purchasing one. Consumers who are looking for this size of vehicle are choosing a Kia Telluride, Mazda CX – 9 or a Hyundai Palisade instead.

2021 Chevy Silverado 1500

The Chevy Silverado and the GMC Sierra both scored the lowest possible score on the Consumer Reports rating scale. Both models have had reported problems with in-car electronics, both major and minor issues with the transmission and engine, brakes and the drive system. Consumers looking for a new truck may want to check out the Ram 1500 or a Toyota Tundra. Both of these trucks have high reliability ratings.

2021 Subaru Ascent

The Subaru Ascent has widely different ratings. It is considered the safest mid-size sports utility vehicle and is a very comfortable on both trails and paved roads. However, the reliability issues worry many potential buyers.

Transmissions problems, in-car electronic issues, problems with the climate system, steering and suspension have all been reported by consumers. For those wanting a SUV of this size, a Toyota 4Runner or the Subaru Outback might be a better choice.
The ratings these models received are based on information gathered by Consumer Reports from people who have purchased the vehicles. These are not personal opinions.

If you are having a problem with any of these vehicles, give us a call at 843-763-5297 or fill out the form on our contact page.

Should you Purchase a Car Online?

3/22/2021

Because of the pandemic, many purchases are being made online now, including vehicles. For many people, buying a car online is a better choice as they dislike negotiating with sales people. For others, the thrill of the hunt is better in person.
Before you decide to purchase your vehicle online, make sure you understand the dealer’s guidelines for purchases made over the internet and consider each of the following as you decide how to buy your next car.

Pros to Purchasing a Vehicle Online

The biggest reason many people are choosing to buy a vehicle online is convenience. It is simple to check a dealer’s stock when you have time and you don’t have to visit several dealerships to see what is available. Most dealers offer drop off options.
Shopping online also allows you to shop after hours.

If you are looking at dealer websites, you have a much larger variety. With online shopping, you can search a much wider area.

If you don’t like negotiating, online purchasing might be the best option for you. Most vehicles online have fixed prices and if you do try to negotiate, it is all done over the internet. You can also compare prices among dealers so you can make the best choice.

Cons to Consider Before Purchasing Vehicle Online

The risk of online scams is enough to keep some people from considering a purchase over the internet. If you do want to shop online, make sure you are looking at the website of a reliable dealership. Look for buying protection and avoid peer to peer payment services.
Dealers may not negotiate prices. If you love to get the perfect deal, you may not have that option shopping online.

If you want to finance your purchase through the dealer, your options may be limited, especially if your credit is not that great.

Test drives may not be available. If you are shopping online for safety from COVID, having to go to the dealership for a test drive might be a deal breaker for you. Some dealers are now offering to drop off vehicles at your home so you can test drive safely. Check the dealer’s website for their policy on test drives.

Only you can decide if shopping for a vehicle online is the best choice for you. Consider the dealers’ guidelines and prices, whether you definitely want to test drive vehicles and your own safety in making your decision. Also, remember that even if you purchase a vehicle online, you will need to visit the dealership or the lender’s office for paperwork.

If you are having a problem with you purchase, give us a call at 843-763-5297 or go to our website and fill out our contact page.

What do I Need to do if My Lease is Expiring during the Pandemic?

12/7/2020

With all of the uncertainty in the world during the pandemic, dealing with your car lease expiring may seem like a giant obstacle in your life, but most dealerships are offering several options for your expiring lease. Car dealerships have taken a huge hit during the corona crisis and are doing whatever they can to keep repeat customers happy.

With so many people being laid off from their jobs, they may be struggling to make their payments each month. Some financial companies are offering payment deferrals to help their customers. If you are in this position, contact your leasing company as soon as you realize you may have trouble with your payments. Do not wait until you have a late payment or have missed one. Companies are often more likely to offer deals to people who ask before they miss payments.

If you want to return your leased vehicle when your lease expires, you may be able to do that, even with many dealerships closed. Call your dealership and let them know you want to return the car. Many automakers are making this as easy as possible and are offering ways to complete the return online. They may even offer home pickup of your car so you don’t have to go to the dealership at all. If the dealership is closed, you may be able to return the car to their service department as those are considered essential.

Before you return your car, spend time researching your next car and looking for the best lease deals. Contact dealers directly as you may get a better offer on the phone than you can get on their website. Ask if the dealer can deliver the vehicle to your home and if the necessary paperwork can be completed online.

You may also have the option of extending your lease. Again, contact your dealer and explain that you would like to extend your lease but aren’t comfortable going to the dealership. Many companies are offering online lease extensions so you won’t have to leave your home. If you do decide to extend your lease, make sure to discuss the mileage cap. Will it be increased, or do you have to stick to the original limit?

With some research and a few phone calls, handling an expiring lease during the pandemic shouldn’t be a big issue for you.

How COVID – 19 has Changed the Car Buying Market

11/30/2020

Although many businesses and industries suffered greatly when COVID-19 hit, the mobility and the automotive industries were part of the hardest hit. Even though many businesses have reopened, consumers are still suffering from financial and health concerns and a worry about the future.

There have been significant improvements in the automotive industries financial outlook in the last few months. Across the country, car purchases are still 14% below averages before COVID, but that shows a four point percentage improvement since earlier this spring.

Purchase intent is increasing across the country, especially in homes with higher incomes. The numbers are still below pre-COVID, but show increases from last spring and summer. Many consumers are planning to spend less on their new or used car than before and are taking advantage of discounts offered by dealerships and automakers.

A big factor consumers are looking for is the ability to conduct all of the purchase online or with very little contact at the dealership. Many dealers are offering test drives with no sales person in the car and may even bring the vehicle to your home for you to drive. Some consumers are willing to pay extra for this service if it isn’t offered at their dealership.

People are also traveling less and while they are likely to return to pre-COVID habits, it is believed that walking and biking as much as possible will become more popular. Many consumers are still concerned about public transportation and are choosing to commute and travel by private vehicle rather than by plane or bus. Younger consumers want constant access to a private vehicle and this will likely drive car sales higher when people feel more financially secure.

Tips from People Who’ve Bought Cars during the Pandemic

11/16/2020

Buying a car during the COVID-19 pandemic will most likely be unlike any other time you have purchased a vehicle. Dealerships may not be open, or if they are, they are open for shorter periods of time with fewer sales people. Their inventory of used cars may be smaller, as fewer people are trading in cars right now. Check out these videos of people just like you who found cars during COVID – 19.

Buying a car during the pandemic could be a great deal. “Be prepared for surprises and don’t get discouraged!”

How to buy a car in a pandemic. “Make a plan before you need to buy a car.”

What I learned buying a car in a pandemic “Don’t be afraid to speak about safety concerns. Expect the sales process to take longer than usual because dealerships are often using only a skeleton staff.”

Buying a car during the pandemic: what to expect “Test drives look a lot different. Here are tips to stay safe while looking at a new vehicle.”

Pros and Cons of Car Buying during Covid- 19 Pandemic “Try to buy something in stock as custom orders could take several months.”

When you are ready to purchase a new vehicle, do your research on what incentives may be available and how other people handled buying a car during the pandemic.

Assignment of a contract

11/9/2020

Most people think that when they can’t afford to pay cash for a car, a financing institution, like a bank or credit union, gives them a loan to buy the car. If you go to the bank and you are given a check, you would be right. When financing occurs at the dealership, the dealership is actually extending you credit so you can buy the car over time. It is sort of like layaway at a department store. Outside your presence, the dealership enters into negotiations with a bank, credit union, or subprime lender to sell the financing contract to the financial institution. If the bank buys the contract, you get the car, the dealer gets its money, and the bank gets payments over time.

Next time you buy a car or truck, look for language like this at the bottom of the financing paperwork: Seller assigns its interest in this contract to (name of financial institution like FMCC, GMAC, etc) (Assignee) under the terms of Seller’s agreement with Assignee.

This provision makes it clear the dealer is financing the sale of the car and then selling its right to repayment to a financial institution.

How is the Coronavirus Affecting Car Loan Interest Rates?

9/14/2020

In March, the Federal Reserve made several moves to reduce interest rates and help support the economy. While this should help keep your car loan interest rate down, you should be aware that interest rates are slowly going back up. However, many car manufacturers are offering huge incentives to lure consumers back to car shopping.

No interest loans, if financed through their corporation, are plentiful right now on new cars. Manufacturers are even offering longer loan periods and offering options to not make your first payment for several months. Most often, these incentives are only available to those with excellent credit and who are looking to purchase a new vehicle.

If you are looking to purchase a used vehicle, or your credit is less than perfect, the best way to get lower interest on your loan is to shop around different financial institutions. Changes in interest rates are happening daily and to find the best rate for you, you will have to put in time and effort to compare several financial institutions. Remember, you will likely have to do most of your shopping on the phone as many places are still closed or only open for limited hours.

Different financial institutions lower their rates at different times so a few phone calls could save you thousands in interest on your loan. Because the economy is still shaky, some banks don’t want to take on any loans that may be a risk to them, so they are pricing their interest rates very high to drive people to seek other options. Other lenders are making their interest rates very low to offer as many loans as they can.

This is why you need to carefully compare several places. Your credit score will drastically affect what interest rate you are offered. Once you have a pre-approved amount, take it to the dealership and see if they will offer any incentives to convince you to get your loan through them.

Most experts agree that there is no way to know exactly what will happen to interest rates in the next several months. Many factors are unknown. Right now, interest rates are still low, but slowly rising, so if your job is secure, it may be a good time to search for a new vehicle.

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