If you have bad credit and want to buy a new car, you don’t have a lot of financing options. Therefore, you are likely to look for a car dealer who can provide the money required for the new car and encounter bad credit score scam.
Car dealer loans are not that bad, however they are more likely to have unfavorable terms. Below are the two most common car scams that you should always keep in mind.
- The Bouncing Check Scam
Car dealers apply this scam to car buyers who managed to get the money for the purchase and will not ask the dealer for financing. The dealer will say that the check bounced and will offer you financing. Of course he will try to convince you that their deal is great and you can get the car immediately and so on. Do not be cheated by these sweet talks.
The dealer will offer you loan at higher interest rate. Moreover, some dealers will ring you up later to say that actually you do not qualify for the credit and will try to increase the rates even more.
- Previously Wrecked Car Sold “As Is”
Some car dealers really don’t know that the car is a wreck, yet others know and skillfully try to cheat you. The real issue with buying a wrecked car is that you will be asked to sign papers that will state the car condition and that you agree to buy it “As Is”. In this case you have no warranty. If something happens to the car, the dealer will simply step back and there is practically nothing you can do.
The best thing to do to avoid this dealer scam is running a Carfax report that will show everything about the car. Also get a mechanic to inspect the car.
