Get the best deal on California car loans!
Considering a Sacramento car loan, a Los Angeles car loan or any California car loan, Keep in mind that there is no “cooling off” period on vehicles purchased from a dealer in California unless you specifically obtain a contract cancellation option. This option is generally available when buying used cars from a licensed dealer (not a private party). To ensure you get the best deal:
Find the value for your vehicle by comparing car prices in newspapers such as the LA Times classifieds. You can also check out prices in pricing guides (such as Kelly Blue Book). However, the latter may not reflect local price variances.
Proof read the auto purchase contract carefully asking asking for explanations for anything that is unclear. If it’s still unclear after the explanation... don’t sign.
Read and understand any warranties that are available on the car whether it’s offered by the manufacturer, the dealer or a third party administrator.
For the best deal on California car loans, shop around! In Southern California you can research Los Angeles auto loan rates in the LA Times. San Francisco auto loan rates are commonly published in the Examiner. Compare auto loan terms from local and national lenders to ensure you get the best deal. You can also submit the easy SmartCarCredit quote request form. It’s a great way to put dealers and lenders to work for you!
Review the contract for any fees that are being assessed. If you’d like to know what DMV fees apply in advance, just go to its online site and www.dmv.ca.gov.
Need help running the numbers on your California car loan?
Know your California car loan principle amount: Use our California Car Loan Calculator
Car loan San Diego, car loan Sacramento or any other California city, know your payment amount: Try our California Car Payment Calculator
Know your California car loan rate: Try our California Car Loan Rate Estimator
California Car Loan: Predatory lending
The California Department of Consumer Affairs defines predatory car lending is the practice of charging consumers excessively high interest rates for car loans in California. For example: A dealer charges you a higher interest rate on your Sacramento car loan than you would otherwise qualify for. Commonly referred to as a dealer “markup”, it enables that dealer to ad margin to his Sacramento auto loans at the consumer’s expense. The net effect of such dealer “markups” could mean hundreds or thousands of dollars in hidden interest charges added to your Sacramento auto loan.
Based on your credit profile, you were entitled to a 6% Sacramento auto loan interest rate but the dealer told you that you were approved for an 8% interest rate. If you agreed to those loan terms, you would effectively be paying an additional 2% interest charge over the life of the loan. Consumers who don’t know what interest rates they should be eligible for and haven’t shopped around comparing auto loan rates in California are the most susceptible to these markups.
On July 14, 2003 then California Governor Gray Davis signed SB 508 which requires dealers to keep your sales records on file for at least seven years, showing how the dealers determined your credit worthiness. Law enforcement and consumer agencies will now have a paper trail for investigating excessive “markups” that don’t match the creditworthiness of the consumer. Whether its a car loan San Francisco, car loan San Jose or car loan Loas Angeles, Dealers failing to comply with a court order to hand over these documents to the Attorney General could face a $5,000 civil penalty.
What can you do to ensure you’re not subject to an unreasonable dealer markup? Shop around for California auto loans before you even think about buying a car. For example, if you live in the Bay Area, try to get at least 3 different San Francisco auto loan quotes and don’t just take the first offer. If the interest rate on your current San Francisco car is too high, consider refinancing it. Check with your bank, credit union or go online and shop around for the best rate on California auto loan refinancing.
If you think you were overcharged on an car loan in California, you can contact: the California Dept. of Consumer Affairs 1625 North Market Blvd, Suite N 112 Sacramento, CA 95834. You can also file an online complaint with the California Department of Consumer Affairs at www.dca.ca.gov and the California Attorney General at: www.ag.ca.gov/consumers. Disclosure: We developed the content for SmartCarCredit™ while working with automotive industry clients. We hope you find it helpful in making informed decisions. While we believe the information to be accurate, we do not guarantee its accuracy.
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