Monthly Archives: November 2009

In most of cases when you want to buy a car you go to new or used car dealers, and still you are not protected from different dealer scams. However, there are several other alternatives to buy a car. And one of those is buying repo car. In other words repo cars are privately owned vehicles that have been seized either by the bank, financial institutions or the government. Reasons these cars have been repossessed is, most probably, because the owner failed to pay for the car mortgage or the car has been used as a lien for another loan, probably a house mortgage. In this case the vehicle …

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Many stolen cars are not only stripped for parts, but resold to trustful buyers. In case you knowingly buy a stolen car, you can be arrested. If you buy a stolen car unknowingly, you could lose both you car and money. Try to evade becoming the car thief’s victim by following the following tips: Beware of loose dashboards. Check the switch for chisel or pull marks. Be on the sight for any deal that seems “too good to be true”. Question the dealer whether the registration was recently issued on an older car. Be wary of new license plates on an old car, or new plate bolts on an older …

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“Contract Packing” – Adding unwanted options and accessories. Some dealerships “pack” a contract with add-ons like warranties, service contracts, options and accessories that you did not ask for. Common add-ons are “protection packages” and rust-proofing. What you should do: •    Before signing the contract, look at it carefully for any items you did not authorize. •    If an item was included for “free”, check to see that it is in the contract and that you were not charged for it. •    If you find any items that you simply don’t want, tell the salesman that you will not pay for it. Financing Fraud – Lying about credit scores Another …

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Trade-in Scam Many customers who trade in their old cars become victims of car dealers who are not truthful about the value of the trade-in. Customers who are unaware of what they can get for their car if they were to sell it today are likely to accept statements like these and may walk away with very little money received for their trade-in. What you should do: •    If you are not sure of your car’s condition and/or its market value, you may want to take it to a few dealerships. Tell them that you are thinking of trading in your vehicle and see what they offer you for …

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Each year thousands of people unwittingly buy cars that have been severely damaged in accidents. It’s not too difficult for dishonest rebuilders to patch such vehicles up quickly and turn a profit by selling them to unsuspecting buyers. To avoid becoming a victim of such auto scams, keep reading our blog. 1. Understand what happens to “totaled” vehicles. If a car or truck is damaged so badly that the cost of repairs exceeds its value, insurance companies typically declare the vehicle to be a total loss and pay out a claim to the owner. Then many insurers sell these totaled vehicles at salvage auctions. Sometimes the cars get purchased …

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It has been shown that one out of three used cars has something to hide. That could be outstanding credit, odometer rollback, etc.. That is why car dealer fraud cases are amongst the most common issues. Vehicle cloning is a used car fraud that has become rather widespread today. To avoid being a victim of such a  auto scam, follow our tips given below. 1. Registration papers: The registration papers give you some initial information about the vehicle. Make sure the license plate on the car matches the number on the registration papers. Make sure the owner’s name matches the seller’s – and ask for a picture ID. 2. …

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Getting a good deal will depend on how well you negotiate. Here are a few insights into negotiating with car dealers and avoiding various car scams designed by them. Never agree to the first proposal. When you’re looking to buy a car, the first offer is always made by the dealer. The car might have a sticker price, and this is used as a starting point for negotiation. The dealer might factor in other things in the computation, such as registration, accessories, taxes, and the like. The first reaction you should have, as a buyer, is that of shock and outrage.  If this first offer is too expensive for …

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Used car fraud becomes more and more prevalent. Vehicle cloning is one of those wide-spread scams. Here is how it works. Thieves steal a car, usually a high-end “desirable” car or SUV. Then they take the vehicle identification number or VIN from a similar car and slap it on the stolen car. Because each VIN is unique like a fingerprint, the stolen vehicle becomes a clone of a legitimate vehicle. Add some fake papers, and the thieves are ready to sell you a vehicle that looks perfectly legal. When the police come knocking on your door, you have no legal recourse – you have to hand over the stolen …

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Below you may read 4 of car dealer advertising scams that are used for tricking naive buyers. 1) Push, Pull, or Drag Sale There are ads claiming that no matter what condition your trade-in is in, they’ll give you $1500, $2000, or even $3000 for it in trade. Foolish people get tricked.  Some even drive off with a new or used car.  They are given $3,000 for their 1983 Chevette and feel like they have just ripped somebody off.  The truth is that they have probably got ripped off. Most car dealers have nearly $2000 to $2500 worth of markup built into the price of their lower end vehicles …

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In order to avoid becoming a dealer fraud victim, one should have certain knowledge about the most common dealer scams. In this blog we will discuss the situations when a car dealership cancels the purchase contract and the options and rights you have in those cases. If the dealership cancels the contract within 10 days, you get your down payment or trade-in back. The purchase contract requires that the car dealer return to you everything given for the purchase. This includes your trade-in vehicle. If you gave a $2,000 down payment and a car as a trade-in, the car dealer must give you back both the $2,000 and the …

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