Monthly Archives: August 2009

This leasing fraud happens when the car dealer sells the customer an over-priced extended warranty on a lease vehicle. Unsuspecting consumers purchase there warranties not knowing that the vehicle is already under warranty during the entire period of the lease. According to the research conducted the extended warranties are high-profit items for most car dealers, that is why they try to add it to every contract- even when they are not needed. The car dealer will, most likely, try to get you into the deal by telling that he offers a special price on the warranty and that it won’t be available later during the lease or at the …

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There are car companies that offer a so-called “single-payment lease” for those consumers who don’t want to make monthly payments, but do want to lease a vehicle. In this type of leases the entire lease is paid in one sum at the time of signing. Typically, a single-payment lease is the same as any other lease, but the cap reduction payment is large enough to drive the monthly payment to zero. As all of the depreciation and interest is paid at the time of signing, single payment leases save the consumer finance charges. On the other hand single payment leases represent less risk for the leasing company, so they …

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In some cases car dealers quote a lower interest rate when in reality it’s much higher. Sometimes they do this on purpose quoting the money factor as the interest rate. In other cases they simply calculate the loan without adding to the price some closing fees, such as the security deposit, into the loan lease. Take the money factor for example: as a rule, this is expressed as a four decimal digit, such as 0.004. Some dealers quote this as a 4% interest rate when in fact you need to multiply it by 24 to get a rough idea of the interest rate on your loan. In this example, …

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You’ve probably already heard about the C.A.R.S (Car Allowance Rebate System) Act, otherwise known as the Cash for Clunkers program. Pursuant to the act, the government will give a used car owner a credit of $3500-$4500 toward the purchase of a new car when the old clunker is traded in at an automobile dealer. The system encourages individuals to get rid of their old cars in favor of more fuel-efficient vehicles. There are a few requirements that must be met in order to be eligible for a rebate on your trade in. The basic rules of the Cash for Clunkers program are as follows: • The vehicle being turned …

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There are a lot of car dealers out there who try to use trade-in scams to make much profit. Being aware of the commonly used car scams is the best way to protect you from becoming a victim. Some dealers will scam you by telling that they will pay off your current lease or loan, no matter how much you owe. Remember that a lease or a loan is a financial contract, and you are not able to eliminate one when buying a new car. Through this trade-in scam the dealer will most likely try to make you pay higher monthly payments on your new car. Avoid this scam …

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This lease fraud happens when the car dealer promises the consumer to pay the remaining lease payments on the existing lease if the consumer signs a new lease contract with them. Remember that the offer may be the reason for a number of potential problems. Most consumers think that the dealer is taking over responsibility for the entire lease when he makes this offer. That’s not what happens. The truth is, they simply take over the rest of the payments and when completed, will return the car to the company that originally leased it to you. In case you have any problem with the car (i.e. damages, excessive mileage, …

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Car leasing is a method when you can have the use of a vehicle by financing it. Leasing, typically, differs from buying and the consumer never actually owns the vehicle, but uses it over a set period of time. The length of car leasing contracts can be 12 months, and can last up to 24 months or 36 months. The person who leases the vehicle is making monthly payments to the owner or the dealership. Car leasing may often be cheaper than car loan repayments. However, the person who leases the vehicle should remember that at the end of the lease the customer will not have over a set …

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Curbstoners are car dealers, who sell their cars on the street by pretending to be private sellers. Buyers of used vehicles should be very careful to be able to detect scams of curbstoners. These are some tips to be used: • Remember, that if it sounds too good to be true, it probably is. If you think that the price of a used car is too good for what you are getting, then the dealer or the seller is probably trying to scam you. • Always check and make sure that the name on the driver license of the seller is consistent with that of the title of the …

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There are a number of things you can do to minimize the possibility to become a victim of a dealer fraud. The key to avoiding auto dealer scams is this: knowledge is power. We offer you a few tips to use: – know your credit history and your credit score – know the vehicle you want and research it’s fair value on the internet – research the loan rates that a credit union or bank would give for a qualifying borrower (for reference) – be prepared to pay for a 3rd party mechanical inspection/report on the vehicle before you commit to it – be patient and be willing to …

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There are several things you should know and consider before you decide to trade in your car. Learn the most common scams and dealer tricks the car dealers may try to use when you trade in your car. Generally, used car dealers make 2 to 3 times more in profit from the sale of used car trade ins than they do from selling new cars. When you trade in your car the dealer offers you much less than what your old car is worth, because he knows that most consumers have no idea what is the value of their car. In case the car dealer pays what your used …

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