Three Car Scams You Should Know About

The Market Adjustment Fee

The car dealer tells you that your car is a really popular vehicle, and to sell it to you they have to add “Market Adjustment Fees” of several thousand dollars. This amount is normally indicated on an orange sticker next to manufacturer’s MSRP sticker. A car may be popular, but if it is in stock, it is not worth paying extra for it. Many buyers, particularly trade-in buyers, have been ripped off before. They focus only on what they get for their old car, and so they don’t see the big picture. They may get an extra few thousand dollars for their car, but they don’t notice that they are charged a much higher Market Adjustment Fee.

The Extended Warranty Scam

The Extended Warranty scam is rather old but it is still in use. Basically, when you take a loan on your car, the dealer will say that you have to purchase an extended warranty because the bank requires it for the loan. Avoiding this car dealer scam is very simple actually. Tell the dealer to write down that the extended warranty is required for the loan and they’ll most probably find some excuse to remove the extended warranty. If they refuse to do so, then please do not buy from that dealership.

The Dealer Preparation Fee

The dealer charges you a preparation fee for preparing your car. Most MSRP stickers display that preparation costs have already been covered by the manufacturer. In fact, some fraudulent car dealers permanently print it on the buyer’s order to make it seem mandatory, but one way you can get it removed is by telling the dealer to add a credit (of the same amount as the dealer preparation fees) on the next line. If they refuse to do so, you should simply walk out of the dealership.