Yes folks, it is that time of year again. The malls will be filled and the credit card debts for many will be growing faster than their bellies after their Thanksgiving day’s feast.
We all are aware the auto dealers are some of the most creative advertisers. I decided to post this story after listening to two different clever ads I heard on my drive to work today.
Each of the ads urged consumers to come buy a new auto this weekend and pay off all the bills you accumulate on Black Friday. One ad said “Buy a new auto on Black Friday and walk away with a check up to $10,000”. The other ad was similar but they advertised getting a gift card between $500 and $2,500. Sounds great, so what is the catch?
Please understand there is no free money being offered in these gimmick ads. If they’re going to give you cash, you could have bought the car for less money. Most experts agree, when you drive your shiny new car off the lot, it loses a percentage of its value instantly. Couple this with the cash you took, and you are now extremely upside down on your new auto. Many consumers are well aware of the consequences of being upside down on autos. If you owe more on the auto than it’s worth, you have a problem should you decide to sell it.
It may actually make sense to some people to take these cash incentives. If you get the new auto loan with a low rate and take the extra cash funds and pay off existing debt that charges higher rates, it just may make sense. Just be aware by doing this, you will owe a great deal more on your auto than it’s worth and you better take very good care of it since it will be almost impossible to sell before you have it paid in full.
This certainly falls under the “Buyer Beware”.
Credit Reporting / Scoring Expert, Chris McConville is the President of Credit Education at CureMyScore.com and founder of myexpertcreditwitness.com where he works as an Expert Credit Witness work in both Federal and State Court. With more than 20 years experience working in credit along with his extensive past Mortgage Originating career, he’s dedicated to sharing his knowledge to educating consumers.
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