3 Common Car Buying Scams
It is not a secret for any person that purchasing a vehicle may be a tiresome process. The reason is that it involves a lot of research, paperwork, and attention to details. Unfortunately, car shoppers may come across a lot of dangers in the auto market. Car dealers aren’t always honest in their activities and often take any steps to make more money. Very frequently, they succeed in selling defective vehicles to unsuspecting buyers using deceitful practices. The key to getting the best deal and driving your dream vehicle is avoiding common car buying scams. Here are five most common car buying scams.
If you are planning to trade in your old vehicle, you should watch out for trade-in scams. Actually, it is on the list of the worst car buying scams. So, what are the characteristic features of this car scam? It occurs when dealers fail to give you the right information about your current vehicle’s trade value. As a consequence, you get a very little sum of money for your old car. Usually, ‘’smart’’ dealers succeed in selling the vehicle with a higher price and put more money in their pockets.
The most effective way of preventing this fraud is having a clear idea of your vehicle’s market value. There are a number of sources that you can use to find out the trade value of your car, like Kelley Blue Book. In addition to that, consider taking your car to a few dealerships. In this way, you have more chances of getting a more accurate estimate of your automobile’s trade value.
The fake escrow account
It’s true that the popularization of purchasing vehicles online gave birth to various car scams associated with fake escrow accounts. The most typical scenario of the fake escrow account scam is this one. Scammers use various websites for advertising vehicles. As a rule, these ads are quite alluring and not all consumers can resist such temptations. These ads belong to the category of ‘’ too good to be true’’ offers. Sellers may make you believe that they live abroad or that they are willing to pay shipping fees.
There are also cases when scammers are ‘’so professional’’ that they duplicate a reputable dealer’s logo and website design. Do you want to avoid the fake escrow account car scam? Don’t hesitate to walk away whenever the seller asks you to deposit funds into an escrow account that doesn’t seem reliable. You had better agree to deposit your financial means only when you are dealing with a verified online escrow service.
The negative equity
The negative equity car scam is among widespread car buying scams. How does it work? Car dealers use the fact that the vehicle is dear to a buyer’s heart, but they have a negative equity. So, taking advantage of the situation, dealers may configure a new car loan. As a result, they roll the money that is owed on the old car into a new contract. Sadly, if you agree to this offer, you can end up making payments for two vehicles instead of one.
So, now you are already aware of the three most common car buying scams that dealers use to trap consumers. If you suspect that you are the victim of one of these scams, you should hire an attorney to fight for your rights.