Bouncing Check Scam: Top Car Dealer Scams
If you have bad credit and want to buy a new car you haven’t got a lot of financing options. For that reason, you are likely to look for a car dealer that can provide the money for the car.
Loans offered by car dealers are not that bad, however, it is more likely to have unfavorable terms. Another important problem is that some car dealers will try to cheat you. Here is presented the top three car dealer scams that you should remember and avoid.
Previously Wrecked Car Sold As Is
This is a popular scam so you should be alert. Some car dealers do not know that the car is a wreck, however, some know and try to cheat. The real problem with buying a wrecked car is that you will be asked to sign papers that will state the car condition and that you agree to buy it “As Is”. In this case, you have no warranty. If something happens to the car the dealer will step back and there is practically nothing you can do.
The best thing to do to avoid this scam is to always run a Carfax report that will show everything about the car. Also get a mechanic to inspect the car.
The Exclusive Fee Scam
Definitely one of the top car dealers’ scams. The ridiculous thing about this scam is that it is so simple and still a lot of car buyers easily fall into the trap.
Another tricky thing about one of car dealer scams is that in fact, it is not illegal. What the seller does is obviously he adds a number under the car price and asks you to pay it. You will be informed that this fee covers their expenses if someone did a check on the car, for cleaning it or removing the plastic from the car seats. Nevertheless, usually the extra charge is rather high for such services and you should never agree to pay it.
The Bouncing Check Scam
Bouncing Check Scam applies to car buyers who tried to get the money for the purchase and will not ask the dealer for financing. The dealer will say that the check bounced and offer you financing. No doubt, he will assure you that their deal is great and you can get the car immediately. Do not be cheated by these sweet talks. If you have been financed by any credit institution you have surely check if they are respectable union and if their checks are accepted.
You might probably be offered a loan by a financing institution at a higher annual interest rate. Moreover, you might be called by some dealers later to say that actually you do not qualify for the credit and will try to increase the rates even more.