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 simply walk away if you feel pressured or ‘smell a rat’
- invest in good advice: study a good buying guide, from insiders who can teach you the dirty tricks to expect
Once on the lot:
- be patient and confident
- ask questions and pay strict attention to financing rates and terms
- if a warranty is offered or promises made, insist that they commit them to writing — it’s the law
- ask about grace periods and repossession policies, if you think this might become an issue (or not)
