Many consumers become victims of dealer fraud after they have already closed the deal. This is when the dealer gets you on the extras and the warranties.
The extras may include rust proofing, scotch guarding and others. The trickiest closing cost scam is the extended warranty scam. This warranty is not the one factory gives you for the car and usually covers the cost of repairs.
Often consumers are not informed that extended warranties cover mainly small repairs and don’t cover major problems with the car. Also never consider buying an extended warranty if you are only leasing the car for a small time period like 36 months. It’s a good idea to purchase an extended warranty not directly from the dealer, but from online warranty companies.
Other extras that dealers use to offer you at closing may include rust proofing, paint sealant, car alarm, credit/insurance costs, detailing and pin striping. You should try to avoid purchasing these extras. Remember that you can save a lot of money if you purchase them somewhere else as well as avoid dealer fraud.
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