The car buying process is often filled with hidden fees and deceptive tactics These can lead to high interest rates that trap people in debt Edmunds com found that about of new car buyers still owed money on their old car Car Loans Are A RIP Off Avoid These Traps The average remaining balance after trading in the old car was over Dealerships often add this balance to the new car loan This can extend the time you spend making payments leading to more interest and being underwater on the new loan The best approach is to spend the least on a car that meets your needs Finance it for as short a time as possible Then keep driving the car for many years after it's paid off Key Takeaways Beware of predatory lending practices and high interest rates on car loans Avoid hidden fees and deceptive auto loan tactics that can lead to exorbitant car loan costs Research vehicle pricing and the true value of your trade-in before visiting the dealership Be cautious of exploitative car financing schemes and unfair loan terms Minimize credit inquiries during the car shopping process to avoid ripoffs in the auto loan industry Dealers Can Inflate Vehicle Prices When looking for car loans it's key to research vehicle prices before visiting a dealership Dealerships often raise car prices to make more money targeting buyers who don't know better Knowing the car's true value helps you avoid these high prices and get a better deal... Login to read full