3 Car Dealer Scams You Should be Aware of
In case a buyer has a bad credit but wants to buy a car, his financing options are not wide. For that reason buyers turn to car dealers who can provide the money required for the new car. Car dealer scams associated with car dealer loans are the following:
Previously Wrecked Car Sold “As Is”
You will be asked to sign documents that will state the car’s condition and that you agree to buy it “As Is”. In this case you have no warranty. If something happens to the car, there will be practically nothing that you can do.
The best thing to do to avoid this auto scam is to order Carfax vehicle history report that will reveal everything about the car. Also get a mechanic to inspect the car that you are going to buy.
The Excusive Fee Scam
This car dealer fraud is amongst the top auto dealer scams. Though it is a simple one, a lot of car buyers easily get tricked. This auto scam is in fact not illegal. The car dealer simple adds a number under the car price total and asks you to pay it. The dealer convinces you that this fee covers their expenses for car checking, car cleaning or removing the plastic from the car seats. However, this extra charge is usually quite high for such services and you should refuse to pay it.
The Bouncing Check Scam
This auto scam is designed for those car buyers who managed to get financing for the purchase and thus do not ask the car dealer for financing. The dealer says that the check bounced and offers you financing. He will convince you that their deal is ideal and you can get the car immediately. Do not be cheated by such sweet talks.
The dealer will offer you loan at a higher annual interest rate. Moreover, some car dealers will even call you later to say that actually you do not qualify for the credit and will try to increase the rates even more.