How to Avoid Car Dealer Fraud
More and more car shoppers fall victims of care dealer fraud. Every day auto dealers invent new tricks and practice old fraudulent tactics to get customer into the deal. Anyhow if the car shopper is aware of most common dealer scams he can for sure avoid them. Below are some tips to follow not to fall into dealer`s trap.
Avoiding Car Dealer Fraud
Study the Final Version of the Contract
As a rule auto dealer continues negotiating the deal and enticing the customer until they finally sign the contract. Don`t forget to look thoroughly the contract. It may differ a lot from the terms of the deal you have clarified and shaken hands on. Another car dealer fraud trap is set up at the Dealership`s Finance and Insurance (F&I) Department. The employees of this department know how to negotiate skillfully. Be sure, they will do their best to persuade car buyer to agree with monthly payment. Even if they are higher than the credit status requires. Similarly, they make buyers purchase some extras. They will do it during a very friendly talk. Any inexperienced customer may find out that there are extras in the final contract. It`s a type of widely spread car dealer fraud scam called “payment packing”.
Car dealers do well know that an average customer does not read carefully the paperwork. They are, likely, to take advantage of it. Car financing is a complicated issue, and most customers prefer to listen to dealer`s explanation. Consequently, they just do not read the fine print. The best way to avoid car dealer fraud is not to rush. Demand the copy of the contract, read it thoroughly, ask questions and if necessary show it to a qualified attorney. You can oblige the dealer to give you some time to think over before signing the contract.
Inspect the Car Carefully
Don`t buy a car until have it test driven and inspected by professional mechanic. Not to mention that you should not forget about visual inspection. Check the car for paint over spray, color fading, unevenly worn tires or other signs of previous wreck. Therefore you need to know that previously damaged or salvage cars compromise your safety and lose their value.
Simplify the Transaction
However, the financial terms, such as trade-in credit, down payment, interest rate, monthly payment, auto loan, and others may seem confusing to inexperienced customer. High are chances that the car buyer will concentrate on some of them and miss the others. Distraction is an art studied diligently by car salesmen. Don`t focus on you your monthly payment, study all the aspects of car financing separately and simplify the transaction.