The idea of a trade-in seems a nice one. You take your older car to the dealership to replace it with a newer one. Your trade-in serves as capital for you. Everything sounds perfect until the moment when you discover you have been scammed. Car buyers are very likely to fall victim during a trade-in. By knowing what you can suffer because of dishonest auto dealers, you will be able to avoid trade-in scams. So, here are the scenarios for such scams and also useful pieces of advice.
- One of the most common trade-in scams is that a car dealer will give you a new car with surprisingly low financing. After all the papers are signed, the down payment made and your old car given to them, they will call you informing that they must increase your loan price and if you cannot pay it, you will have to return the vehicle. If you say you wouldn’t pay such a high price and ask them to give your trade-in back, they will say they sold it. This scam works with those people who do not know the law, which says that a dealership cannot change the contract terms after it had sold your car. So, if such a thing happens, you have the right to take your car back and also the money you paid as a down payment.
- When you plan to trade-in your old car, never give them your car documents and keys until all the contracts are signed. Because very often dealers do not add in the contract the fact that you traded-in your vehicle, or they may just write an incorrect amount of down payment.
- In order to avoid trade-in scams read all the contracts and documents before signing, even if the dealership is reputable. Make sure all the amounts and numbers are correct. You need to do this not only to avoid dealer fraud, but also if you have already fallen victim to dealer fraud. These facts will work on your side when in court.
- Also, if you have a car worth $6000 and you want to buy one for $10000, never trade-in your car for $10000, trade it in at its actual price. Because it is usually the dealer who gives you the loan, so he can increase it and you will be forced to pay a higher interest rate.
However, if you feel you have been cheated, call us at 818-990-0418. Our dealer fraud attorney will review your case and give you precious advice or deal with your case in court.