Car Dealer Scams and Ways to Avoid Them
The credit score scam
The credit score scam is one of the common car dealer scams. This scam is designed in the following way. The finance manager gives you some misleading information about your credit score telling you that it is lower than it really is so that they can get you for higher interest rates.
This scam is comparatively easy to avoid. Just get your own copy of your credit report and bring it with you.
It is not easy to lie to you about your credit score in case you have your own copy of it. If your paper and theirs doesn’t contain the same thing, go somewhere else because that dealership is lying to you.
The Dealer Prep Scam
Basically the dealer will tell that you have to an extra $500 to cover the labor costs of the dealership’s 5-point inspection.
You are paying for the amount of time it took for the dealership to make sure that the car wouldn’t explode on you in the first week of owning it. This check up is for the dealership to remove plastic from the seats, vacuum the car out, make sure that all of the fuses and fluids are ready to go, etc.
When factories deliver new cars to the dealerships the cost of delivery and prep is already covered, so basically you are paying the dealership for work that they haven’t really done.
You can avoid these car dealer scams by plainly asking the dealership to add an extra $500 credit to the deal to make sure you do not have to pay the money. If they refuse, then you can decide if the car is worth the money or not. If you believe that it is worth, buy the car; if not, go to another dealer that will remove the dealer prep costs.