Scam 1: The straw purchase scam
Here a straw purchase means someone purchases an automobile for other people who, due to poor credit, cannot purchase it themselves.
In order to make you buy the car without any hesitation, the car dealer may assure you that you can get a car loan even if your credit record is not very good. Moreover, they will tell you that you can build your credit by using this car loan, and the only way to do this is to find a co-signer for your contract. And next you will find out that the co-signer is not the primary borrower of this loan but the only borrower-your name is not even on the contract.
It is difficult to detect the straw purchase scam. You can avoid it in advance. Remember, never sign contracts separately, as this is a good chance for the dealers to perform the straw purchase scam on you.
Scam 2: The check bounce scam
This scam occurs in case you are using a credit union or an online car finance site. For getting the commission to sell you the car dealer’s financing, the car dealer will refuse your bank draft first and then lie to you using the reason that the online lender always bounces check. So you have to agree with their offer of financing your car purchase, even though that car dealer financing comes with a higher ARP.
Scam 3: The spot delivery scam
A spot delivery scam occurs a few weeks after the car purchase when the car dealer calls you and says that your credit score is too low to have the low ARP you signed on the contract. But in fact there is no problem with your credit score. This is just a spot delivery scam.
The best way to avoid this kind of scam is to use your own financing instead of using the financing that the car dealer offers you. Never give the car dealer any chance to trick you.
My younger sister purchased a vehicle from a recognized dealer and that same day after signing and all, one of the sales man left car running and car was leaking and overheating in front of dealership, so they took to the back of dealer had her drive rental, then a week later her battery went dead, then she never received the tag,they issued 2 temp tags, the dealer never fix the problem with the car,refused and adviced she needed to purchase additional warranty and then they will fix.she sold her old car to get a better one but honestly I see the dealer ripped her off,please advice us on what to do before too late
It appears that your sister was sold a vehicle with a pre-existing non-conformity. We should be able to force the dealership to repurchase her vehicle and refund her payments. Their proposal to sell her additional warranty is actually fraudulent as well since they are trying to conspire to defraud the warranty company. Please have her contact us at 818.990.01418. We will need copies of her purchase agreement and any accompanying document. Thank you.