Car Dealer Fraud. What are some things to be aware of before buying a used car?
Buying a used car is supposed to be an exciting time for most people. The sad thing about this is the car dealers who are out to get as much of buyers money as they can, and not through proper channels either. It is true that car dealerships are, in business, making money through scams, and car dealer fraud is the worst thing that can happen. Here are some things dealer of ill repute may try on unsuspecting victims.
The Negative Equity Scam
With this one, the dealer will promise to pay off your trade-in, no matter the cost. If your trade-in is worth less than what is owed, the dealer will pay the difference and then attach the difference in the new car note. You are now paying for the new vehicle and the balance owed on your trade- in. Guess what you now have? More negative equity.
The Bait and Switch Scam
Reading an ad for a car sale can grab your attention, but please pay attention to the fine print. The words one only may be displayed, and this means when you get to the dealership “one car” will be sold prior to your arrival. Now the dealer has you in his grasp and will do whatever it takes to sell you a car more expensive than the one that got you there in the first place. This bait and switch car dealer fraud is a way of making a lot of money off the customer. Also, beware the dealer addendum stickers placed very close to the manufacturer’s sale sticker. These addendum stickers will have added on costs and is another type of car dealer fraud.
One Day Only Scam
A common pressure situation a dealer finds them in is having a buyer leave before the deal is done. They know that chances are the buyer will not be back so they will tell the customer the deal is only good for one day. Unless a bonus program, rebate, or incentive is ending that day, this is not true. Do not fall for this one.
The Four Square Scam
This is a well-liked car dealer fraud and runs like a shell game on paper. There is a burst of numbers related to the cost of the car, the monthly payment, the amount of the down payments and interest rate of the loan. When all is said and done the buyer is so frustrated that he is unsure of the deal he really got. To prevent this always have financing done in advance and do not use your trade towards the purchase of a new vehicle.