Auto Dealer Fraud: Three Card Monty

Like most of the common dealer tricks this scam also works on misdirection. This dealer fraud occurs when the car dealer gives you what you want on one end of your deal while taking it out of you on the other. For example, the dealer gives you a break on the purchase price of your new car but then give you less for your trade-in vehicle. Or they give you a great deal on your used car and new car but the terms of your financing are not the best. If you want to get a good deal on your new car you have to understand all three points of the sale: terms of financing, price of your used car and price of the car you are buying.