Auto Financing Scams (1)

Auto Financing Scams (1)

To avoid becoming a car dealer fraud victim, one should beware of all kinds of auto financing scams. Below are some of the most common financing scams that are utilized by some fraudulent car dealers.

Market adjustment fee

The dealer will try to convince you that the vehicle you want is selling like hot cakes and is very popular. In order to sell you the vehicle, they will do some “market adjustments” amounting to a few thousand dollars. Even if the car you want is very popular and is very much in demand, if it is in stock you should not be tempted because getting a “popular” car is not worth it if you have to pay a few thousand dollars more. You should never pay more than the MSRP (manufacturer’s suggested retail price).

Yo-yo scam

You will be allowed by the dealer to take the car home as soon as possible. The dealer will take care of the financing, a few days later he will contact you again and tell you that there was a problem with your financing plan. He will tell you to set up a new financing scheme which, of course, will be at a higher cost.

Be wary of auto financing scams like this and avoid it at all costs if you detect it. If you have a bad credit standing, don’t have your financing done by the car dealer and make arrangements for your own financing. Never take the car home immediately. Wait for at least 24 hours to make sure that the processing of your financing scheme has already been completed. By allowing one whole day to pass by, you are assured that the dealer cannot use this scam on you.