The Consumer Protection advocates

Monthly Archives: June 2010

Jun
29

Used-car buying is a great business wrought with scams. Used-car sellers need to be informed of possible car scams. Here are some of the most common ones: •    Certified Check Scams – This scam is often done on sellers of used cars over the Internet. A buyer informs that he/she wants to buy the car and pay with a cashier’s check. When it comes to the last minute, the buyer brings some reasons that he/she needs to write the check for more money and have the seller wire him/her the difference. Then the check appears a fake one, and this fact can be discovered long after the seller has …



Jun
25

A recall arises when a manufacturer or a third party comes to a decision that a product has a fault, which is serious enough to cause harm to consumers. It is then barred from distribution awaiting the problem to be fixed and tested. An official auto recall demands a manufacturer to release an official notice to vehicle owners found to be defective. In case a manufacturer is considered responsible for a serious defect, the NHTSA will announce the auto recall. Usually only a portion of the vehicles produced for the specific year, make, and model will be affected by the defect and recall. How to Know whether Your Car Has Been Recalled? …



Jun
22

Car dealers do not sit on their hands, they constantly think of new methods to take advantage of car buyers. Here are the most recent car dealer tricks. • Spot Delivery: When you choose the car you like, fill out all the paperwork, the car dealer tells you that although your loan hasn’t been “officially” approved yet, you can drive the car home anyway. Don’t agree! If you do, the car dealership will call you and say that your loan wasn’t approved at the interest rate you discussed. However, you were approved at a higher rate. This signifies that you’ll likely pay thousands of dollars more than you expected. …



Jun
15

1. Advertised Special Car: It is a car dealer trick that has been around for many years, that is to advertise a car at a special price that is almost unbelievable. This can be a stripped down model with a standard transmission, perhaps no radio or air conditioning and crank windows. This is the car nobody wants after they see it, but the plan is to advertise the car at a very low price so that customers will come into the dealership. The aim of this trick is to make the car buyers that came to look at the low priced car buy the higher priced car. The chances …



Jun
10

With all the latest progress in computers, the internet and, etc… it was predictable that there would be a related progress in auto fraud too.  The latest method of which is car cloning.  This is the point where thieves take the identification pieces (VIN plates, factory stickers and title work) on a stolen vehicle and replace them with pieces from a legitimate vehicle. Afterwords the car is sold to unsuspecting buyers through online auctions and local newspapers. The trouble with these cloned cars is that when the car appears as stolen, the car will be confiscated and the buyer will be out of their purchase price plus the amount …



Jun
08

There are some ways to avoid auto warranty scams: investigate, verify references, and verify independently. Spend some time and efforts to lessen the risk of becoming a victim of auto warranty scams. Be more informed and better protected. When it comes to purchasing an auto warranty, write down all the services included. Seek for details on participating auto garages. Pay close attention to the length of coverage that is provided, both in mileage and in years. Ensure that you have read the fine print to find out who is responsible for payment to the auto garage at the time the service is provided. Stay away from any agreement requiring …



Jun
03

1. Keeping the Trade Keys: The idea is to get the keys to your trade-in so you can’t leave without getting the keys back from the salesman or sales manager. In fact keeping you captive they try to sell you a car without you getting up and leaving (an ordinary car sales trick). In case you demand your keys back, surely, you would not have any problem getting them back. Usually dealers understand upset customer is not very likely to buy a car. 2. Pulling the Keys: The trick of pulling the keys is usually used to help move negotiations forward. While the salesman and customer are negotiating another …



Jun
01

When dealing with dealers, it is not easy to recall every fact you have examined, but try to keep these  key points in the back of your mind: •    Dealers have revenue commonly between 10 percent and 20 percent. Typically, this is the difference between the sticker price (the price they want you to pay) and the invoice price (the price they paid for the car). •    If you do not see exactly what you want on a new car, consider ordering it. This may take time, but at least you’ll be paying for what you want and not paying for extras the salesperson talked you into. •    If …