Examples of Auto Dealership Scams
Usually, auto dealerships seem more trustworthy than individual car sellers; that’s the reason why people prefer buying cars from the dealerships rather than from separate individuals. However, buying from a dealer does not mean you are free of auto dealership scams, as some car dealers are great scam artists in reality. In the following paragraphs we will give brief descriptions of some auto dealership scams practiced rather frequently.
- Market Adjustment Fees
Market adjustment fees are extra fees that are imposed on the car purchaser. These fees are usually added to the price of certain popular vehicles that are sold very quickly. Thus, the auto dealers want to make additional profits by charging the buyers of popular car models with these fees. If you agree to pay more than the MSRP of the car, then you are agreeing to be a victim of this car dealership scam. So the best way to avoid it is to never pay more than the manufacturer’s suggested retail price.
- Giving a False Quote Scam
This is one of the favorite auto dealership scams of dishonest car dealers. The scenario is the following: the potential car buyer asks for the quote of the set price for the purchase but later on, when signing the paperwork, it turns out that the car price is much higher than quoted.
The only way to avoid being cheated in such a way is to state from the very beginning that you are not going to pay a penny more than the quoted price of the car. By this you will set the tone and make a right step towards getting a good deal.
- Buying vs. Leasing scam
Before entering the dealership people already have an idea of what they are going to do: lease the car or buy it? When choosing the option of leasing people pay a down payment, then they make monthly payments until the lease ends. Leasing usually lasts for 2 to 3 years and the monthly payments here are lower than if you bought the same car.
There are some auto dealership scams for this scenario as well. One of them is that the car purchaser who has selected the option of buying the car finds out while signing the paperwork that he is signing under lease documents.
In order to prevent such a scam, read the purchase or lease contracts thoroughly and very carefully not to miss a thing there.
After all said above, it is important to say that not all car dealers are dishonest people, there are really good dealers as well. So it is your task to find the best one or to be careful not to fall a victim of auto dealership scams.