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You’ve seen these car lots on the road.  They have balloons everywhere, as well as huge banners that you can see from a mile away.  “Buy your car today and don’t pay anywhere else!”

While it sounds like a great deal, you’re soon going to find out after doing some research is that it’s a great BIG scam.  I wanted to give you 5 reasons on why you should stay away from car lots such as these.

The loans are going to be way too high: When you’re not educated on the loan, they are going to tell you what you want to hear.  They are trained to make you think that you’re getting a good deal.  What you don’t know in the fine print is that you’re going to be pay 3 times the amount of the car amount.  Trust me on this one.

Cars are shady: You will find that the cars are nice on the outside, but you will also find out that under the hood, they may not be what you think.  You may want to get a mechanic to check one up, but you will soon find out that they will try everything in their own power to stop you.

High pressured sales: They have shady tricks and the prey on the weak.  Most people go to these lots because they know that they can pay for the car right there, rather than going to a finance company.  They know about this and it’s important that you do your due diligence before heading to any car lot.

High lemon rates: If you’re not familiar with the lemon laws, there’s a lot of talk in the online communities, where they talk about how many cars come off the lot as a lemon.  To put it in perspective, it basically means that the cars won’t live up to your expectations.

Bad practices: Again, you’re probably getting the point here.  Not only are you going to deal with people that don’t listen, you’re also going to deal with those that are going to be like loan sharks if you miss your payments.

Where should I go to purchase a car?

Check with a dealer: Your credit may not be as bad as you think.  Meet with an actual dealer and see what they can do for you.

Check with a bank/credit union: Just like the dealer, meet with your local bank and see what they can do for you.

If you’re finding that you’re having a hard time finding a loan, you may want to resort to family or friends.  If that can’t happen, consider taking public transportation while you save up some cash.