Monthly Archives: May 2010

Car scams do “chase” car buyers. Every year the number of car dealer fraud victims increases rapidly. The main concern is that newer and newer car selling scams are designed every day which are mainly based on older “classic “scams. Here are some of the most common auto dealer scams. • It is a common scam when a dealer claims that you are not eligible for competitive financing rate with your credit score. This is only true if you miss your payments or pay them with delay. Some dealers may try to convince you that the only option you have is to accept the financing and terms suggested by …

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Checking the car title history is important since it is the only surefire method to confirm that a car has a clean past. Even if it “passes” the test drive and has no evident damages, the buyer should check the car’s tile history. Here are the key steps: Know what to pay attention to on the certificate A car title is an official document of ownership that is issued by the Department of Motor Vehicles. It has a VIN (vehicle identification number) that is unique for each car. You should check to see that this number on the certificate matches with the number on the car (as a rule …

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Is buying a car at a car show a wise investment? Should you listen to the inner child who is probably screaming to buy the car or should you calm down and walk away. Buying a car at a car show is risky and may involve car scam practices. You should avoid buying a car at a car show unless you have had enough time to carefully shop around and see how much the vehicle that you are interested in would be worth. Additionally, during a car show the owner is not going to have much time to discuss the car details with you. This is simply because the …

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Responding to Toyota Motor Corp.’s acceleration crisis, a subcommittee of the House Committee on Energy and Commerce opened hearings on proposed legislation sponsored by the group’s chairman, Henry J. Waxman, a Democrat of California. The aim of the hearing is to reshape auto safety regulations and increase potential fines against automakers for violating safety laws. The new legislation would create at least half a dozen new safety rules and standards. All new motor vehicles will be required to have the so-called black boxes or event data recorders, and brake override systems. As H.J. Waxman stated in one of the interviews this will give the National Highway Traffic Safety Administration …

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Spot delivery scam is one of the most popular dealer frauds. Sometimes it is also referred as Yo-Yo financing. Dealers use this scam for people with a bad credit, who are not able to get a good APR anyway. The whole point of the scam is giving the buyer a car “on the spot” with an aim to “yo-yo” him back later on to ripoff more money. You can tell you are a spot delivery fraud victim if your dealer says you don’t have any problem with your credit report and you can get a good APR on the loan. You get the keys handed on and drive away …

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Car leasing is sometimes a better option than buying. It gives you the chance to drive a new car for less. But in the reality, there might be more  car leasing scams than car buying scams. The leasing regulations are not as strict and defined as the ones for buying. This also leads to more leasing scams. Here are some of the most common car leasing scams. Artificially low interest rates The dealer may tell you a lower rate when you ask them about leasing. They do so either by quoting the money factor as an interest rate or not adding some fees like amortization of the closing fees …

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