Consumer Finance: Don’t let FOMO put you at risk of fraud, fault and flaws

The end of 2021 sees a number of influences, both positive and negative, playing into the hands of eager consumers as they emerge from lockdown. Car and boat dealers may be keen to move stock and offering great deals. Cyber Week events are attracting more and more buyers to sales in online platforms. Factors contributing to a sense of urgency include short supply of some boats, cars and caravans due to global supply issues. A message which has been stressed through media channels over the past months. Jade Finance provides hints and tips so consumers don’t let FOMO put you at risk of fraud, fault and flaws in the buying and consumer finance process.

One of the major stand-outs at the moment is the alerts issued in regard to cybercrime with eye-watering figures released on the number of people who have been defrauded. While these figures do relate to issues different from the buying we are discussing, it can pay to be aware of the risk. Right at the same time as online shoppers look to take advantage of deals in what is known as Cyber Week, alerts re cybercrime are revealed.

As lenders in consumer finance for cars, boats, caravans and motorbikes we identify a number of potential risks that consumers face in regard to finance and how we can assist in minimising the threats. Primarily, faults in not getting the cheapest consumer finance deal possible by not doing research and selecting the cheapest interest rate lender.

We outline some of the issues and how our lender services may assist you acquire your goods with the cheapest interest rate loan.

Resisting FOMO

Is rushing into a purchase that your gut is telling you doesn’t feel right going to be worth it? Resist the urge to be swayed into an immediate buy by pushy sellers or the fear of missing out by still carrying out due diligence. Research, delve-deep and satisfy yourself that this is a good deal.

FOMO applies equally to missing out on getting goods in short supply and to securing finance. Paying over the odds in higher interest rate because you were made an offer from say the dealer on the spot. There can be a temptation to grab it while it’s there for fear you may not be able to get an offer elsewhere. Or you may not be able to secure the goods elsewhere.

Another factor for first loan seekers is not having a good understanding of the consumer lending market. Using our broker-style services can be of significant assistance in addressing many of these issues.

With short supply of new cars, buyers are being drawn to the used car market. What’s happened? Prices of second-hand cars has skyrocketed. How can that affect your car loan? In several ways.

  • Purchase or ticket price may vary from the considered value of the vehicle.
  • Lenders may not be willing to offer no deposit loan covering the full amount if the price is seen as exceeding the value.
  • If no deposit finance is achieved, the end of term payout may exceed the actual value of the car.

To avoid this, possibly consider making a compromise on your new car selection. Look further afield for other vehicles that will suit your requirements. Or haggle hard with the second hand car dealer to get that price down. Refer to sources such as Red Book for valuations or enlist assistance from a car broker to source the car and negotiate on price for you.

Another tip is to use professional motor vehicle lending experts at Jade Finance to source and secure you a car loan that suits the vehicle you are purchasing, whether new or used.

Scams to Watch For

The ACCC’s ScamWatch is a great resource to stay across frauds and scams currently operating.

Here’s a few tips on what to watch out for:-

  • Non-existent goods when buying online.
  • Invoice fraud – paying to wrong bank account because seller’s invoice has been intercepted and changed. Phoning the seller to check bank details prior to transferring money is highly advised.
  • With used cars and boats, make sure the goods are as originally inspected when it is time to take delivery. Ensure nothing such as tyres and accessories have been changed between the time you viewed and when you take delivery.
  • Goods not as presented when they arrive. Particularly important for online buyers.
  • Stolen goods.
  • Fake reviews and celebrity endorsements. These are rife in many marketplaces.
  • Unlicensed credit providers.

How Jade Finance Can Assist Buyers

If you’re taking on finance to make that major purchase, Jade Finance can provide significant assistance in avoiding some of the pitfalls mentioned above.

  • Your Jade consultant handles the loan process for you. We source you the cheapest finance offer to meet your requirements from our vast lender panel of reputable banks and non-bank lenders.
  • We negotiate on interest rates and other loan conditions to ensure our customers receive the cheapest loan available for their purchase.
  • We can conduct ID seller verifications and checks of registrations of goods including if they are ‘under finance’.
  • We provide quick quotes and fast loan approvals to assist buyers capture low-stock items aspa.
  • We provide pre-approved loans so you can have your finance confirmed prior to visiting a dealership and can then place your order to avoid missing out.

The end of the year can be a great time to get a great price on a wide range of goods. But the rush should not mean cutting corners in due diligence and best practice in purchasing goods and in sourcing consumer loans.

Contact Jade Finance 1300 000 008 to discuss consumer loans.