Car Dealer Scam: Coached Repo
Coached repo is a common car dealer scam when the auto dealers use to trick individuals that may be upside down on their car payments, i.e. own more money than the car is worth. If the buyer can’t seem to get out of their old car because they owe too much money and can’t get a new loan, the dealership would coach them to stop making payments and to have their car repossessed. The dealer informs the buyer that if their old car is repossessed the dealership will just take the car and cancel the debt. However, this is not true. In fact, this can destroy the buyer’s credit and make it difficult for other purchases they may need to make later.