What Are Common Bad Dealership Practices?

Very frequently, consumers become victims of bad dealership practices. Sadly, nowadays you may come across many dishonest car dealers. In fact, fraudulent practices are typical of both new and used car purchases. Some dealerships don’t work in a transparent manner and fail to follow certain regulations. Well, the reason behind their actions is quite simple. Money, money and again money. They want to earn more. To achieve this goal some dealerships are ready to use a wide range of deceitful practices. Do you want to avoid cunning dealers’ ‘’perfectly designed’’ traps? In this situation educating yourself about the most common bad dealership practices is the key. Have a look at the list of the widespread auto dealer frauds and don’t allow anyone to take advantage of you.

Packing the contract

Packing the contract is among bad dealership practices that some dealers use quite often. What are the characteristic features of this auto dealer fraud? So, the most typical scenario is that the dealer succeeds in ‘’packing’’ a contract with certain extras. This includes add-ons, like service contracts, various accessories, warranties, etc. In a word, you have no idea that these additional items are optional. Furthermore, consumers aren’t aware that they pay an extra amount of money for these extras. The reason is that ‘’ smart’’ dealers ‘’kindly’’ inform you that these options are included in the price of the vehicle. If you want to protect yourself against this fraud, you should follow these tips:

  • Don’t be impatient to sign the contract before exploring it properly.
  • Did the dealer tell you that certain add-ons are free? Well, don’t trust them. To be on the safe side, make sure that the item in question is in the contract. Also, check that you don’t have to pay for it.
  • If you notice that there are certain add-ons that you never asked for, inform the dealer. Don’t forget to mention that you aren’t willing to pay for these extras.

Financing fraud

Financing fraud is one of the bad dealership practices that is the source of high profits for some dealers. Watch out for this auto dealer fraud, as it can empty your wallet. So, let’s discuss financing fraud in detail. To begin with, what certain dealers do is assuring you that you have a bad credit score. Thus, what do you think which is their next step? Yeah, you are right. They attempt to persuade you that since your credit score is too low, you don’t qualify for the low-interest rate. Be careful, as this is a trap. Their main goal is to convince you that high-interest rate financing option is the best in your situation. You can hear various fairy tales that aim to make you believe that it is a perfect deal. The most effective way of preventing financing fraud is having a clear idea of your credit score. If you are armed with this information, no one can fool you that you have a bad credit score.

Their main goal is to convince you that high-interest rate financing option is the best in your situation. You can hear various fairy tales that aim to make you believe that it is a perfect deal. The most effective way of preventing financing fraud is having a clear idea of your credit score. If you are armed with this information, no one can fool you that you have a bad credit score.

Buy-lease switch

In order to understand buy-lease switch, you should know the difference between buy and lease.Thus, in case of purchasing a car, you own the vehicle, when you finish making the necessary payments. Now let’s refer to the second term: leasing. When you lease a vehicle, you have to make payments on a monthly basis. There is a certain period of time, which is known as lease time, during which you should make the payments. It is essential for you to know that you don’t own the car when this period is over. Did you make up your mind that you wish to become the owner of the vehicle?  Then it is necessary to pay a large amount of money for the car. Additionally, you should also know that you will have to pay the early termination fee if you decide to return the vehicle before the lease period is over.

This penalty is a large sum of money.When does buy-switch occur? It occurs when some dealers tell you that you are purchasing the vehicle when actually you are leasing it. The opposite version is also quite widespread nowadays. In some cases, dealers may cheat consumers assuring them that they will own the car at the end of lease period. This is not true. The wisest step to take for avoiding this fraud is focusing on the written contract. Take your time to read the contract in a proper manner. Don’t be shy to ask questions if something isn’t clear.

In conclusion, you need to take certain precautions to avoid bad dealership practices. However, any person can make mistakes and become the victim of unethical dealers. At this point, don’t panic. What you need to do is seeking legal assistance.