Monthly Archives: December 2008

Irrespective of where you go to find your automobile, be sure to stand fast and continue within your means. Do not allow anybody talk you into purchasing an automobile that you either can’t afford or are not really in love with. At the same time there are tons of other cars you could fall in love with. Be prepared to walk away from the vehicle if the deal doesn’t conform to the criteria you laid out earlier. Your power to negotiate a good deal will increase by leaps and bounds. Maybe most importantly, acquire the vehicle identification number (VIN) which is generally found on the driver’s side dash and …

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There are many types of auto insurance scams – some involving car insurance companies and others involving individuals trying to scam the system. 1. Being lowballed. This is where you do your research and hunt around for the best car insurance deal you can find. One company comes in way cheaper than the rest so you decide to go with them. Then 2 months later, once you’ve signed up and paid your money, you get a letter saying that there was a ‘company rate error’ and your premium is actually a couple of hundred dollars higher than the price you were quoted. 2. Buying from a Phony Agent. Just …

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When you look for balloon auto financing, chances are you either have dealt with a dealership recently or soon will. Be sure not to be taken advantage of by reading up on the top dealership scams. “Your credit disqualifies you for the best rates.” Dealers will  do their best almost always to make your credit appear worse than it really is. They do this so they can amaze you into higher interest rates on financing. This is part of the reason why you would be better off securing third-party financing, such as balloon auto financing. Accumulating all transactions into one. Dealers love nothing more than to negotiate all three …

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Usually salespeople will use a code to represent numbers. This is often done to hide their used numbers from someone who does not know this code. For example, A=1, B=2, etc., and J=0. The salesperson will often even show you this when calculating things for you. So if you see “CJJJ”” next to your trade-in you are getting $3,000 for it. Dealerships will do their best to impress by making you buy your vehicle today or you will lose it. They know they don’t have to miss their best chance when you are at the dealership that day. Dealerships may also often let you know they have a buyer …

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Deposit scam takes place when the finance manager insists on a deposit before you have signed the purchase contract. You will be told that the finance manager has to bring in a copy of the contract offer to his boss and he needs a deposit from you just to ensure that the boss will sign off on it. It’s just a dealer trick to make sure that you are “serious” about getting the car. Avoid this car fraud by refusing to give a deposit before the contract is finished a signed by both parties. Dealers run this scam so that they can keep you there. Tell them that the …

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Dealerships depend on a buyer’s ignorance so that they can mark up your prices. Holdback is money paid to the dealer for about 2-3% of MSRP. It is money that is given to the dealer from the factory when the car is sold. This is profit for the dealer for buying the car. This scam occures when dealers will tell you that it costs them money so that they can charge you for it later. Basically, they can get the money twice. Avoid this delaer trick by letting the dealer know that you know better and will not pay it.

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This dealer fraud happens when the dealer tells you that they will beat anyone else’s prices or give you $500. They simply ask you to get the price from another dealer and they’ll beat it. The hard part is that other dealers will not just hand over their information for you to take to someone else. This deal is almost impossible to get because most dealers sell different makes and models anyway. Avoid this scam by not buying into it in the first place.

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Purchasing a new car from the dealership leaves you open to dealership scams, but what about when you need to refinance your car loan? Many of the scams are the same as you will encounter when buying a car. Here are the best tips for avoiding any of the refinance scams that dealerships force you through. Get your own credit score and bring it with you to the dealership Don’t pay a cash deposit for your financing loan because if the deal goes bad, you can’t get your deposit back Don’t apply for a car loan until you have been employed for at least 6 months if you are …

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This is one of the  scams most commonly used  by dealers. They will try to convince the buyer that they can provide the lowest possible price for the car thereby prompting the buyer to start negotiations with the dealer. The salesman will probably tell you that you can get the car that you want for a lesser amount but when you are about to enter negotiations, it turns out that you were not promised a lower price after all. In the end, it is just an empty promise.

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The dance begins on the car lot where the salesman or pack of salesman jumps you as soon as you get out of your car.  Anyway, when they approach you it usually starts like this. Hi, I’m Johnny ShowroomShark, are you looking for a car or truck today?” You answer, they begin to lead you around and show you what they want to show you. One way to take control immediately and put them off balance is to say “I just want to look around by myself” and take control. This is a big issue with car dealer management; they ALWAYS want to be in control. Next, assuming you …

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