The new financial reform regulation from the government ensures that car dealers can no longer try the kind of oily tricks they used to be well known for before. While you are much more protected these days than you used to be, there still are areas where you would be better off watching your back. Almost all auto car loans in this country are generally applied for not necessarily at a commercial bank or another finance company, but at an automobile dealer’s. And the new consumer financial protection Bureau has no supervision over them. Actually, as far as new auto car loans go, if it comes from a car dealer, you are on your own. You can find just the FTC and the other consumer protection organizations – and they have not been nearly sufficient.

You do not even have to the Truth in Lending act safeguarding you, for example. And protection is something you really need when you are dealing with lenders associated with auto car loans, especially for used cars. The Better Business Bureau takes care of more complaints to do with used cars than any other business, because people selling used cars tend to try to pull the wool over the eyes of people at a higher rate. Here are some tips on how not to get cheated when you step into the dealership for help financing a new car.

Dealers do not make loans out for cars themselves, obviously. They get loans from banking institutions and other lenders, and mark them up before they pass them through to you. They can mark those loans up by three percentage points as far as the law is involved. Of course, that would be daylight robbery. But it does go to show how they will raise their fees as much as they could possibly get away with dependent upon what a given individual consumer will tolerate.

A wise idea then, would be to keep the loan process independent from the car buying activity. You can get a much better deal shopping around at the banks and other local lenders. When you walk into the dealership, you’ll have a list of offers that you can get from elsewhere, and you can ask the dealer to compare them.

Probably the most profitable ways in which dealers make profits on auto car loans is through the sale of add-ons. They will try to sell you extended warranties, and extras like a VIN etching to make a little extra on the sale. Commonly, they will add those on secretly, without even telling you. It’s up to you to see the paperwork closely to make sure that there isn’t anything unnecessary you are signing up for. And referring to paperwork, make sure that you do not buy a car to drive home under the condition that the finance is approved later on. You’ll end up a week later getting a call from the dealership that says that your finance fell through. And then they will attempt to sell you a higher-priced package. Stay away from any moves that could place you at a disadvantage in the bargaining process.