Types of Car Dealership Scams
When buying a car, individuals usually feel safer to buy it from car dealerships than from private individuals. While this may be true in most cases, there are always some dishonest dealerships that use various scams in order to sell vehicles or get a higher priced sale. Below we’ll highlight a few of these car dealership scams.
Multiple Advertising Fees
Multiple advertising fees is a serious scam that you should pay attention to. Most car manufacturers add these onto the factory invoice when they ship them to the dealership. However some dealerships add the fees onto the vehicle contract and as a result the buyer pays for advertising fees twice.
The best way to avoid this type of scam is to inquire about any advertising fees which are added onto the total price that you have to pay. If there is an advertising fee on the price that is paid by the purchaser, you should ask the dealership whether or not this fee was already charged on the factory invoice. If the answer is negative, then ask to see the factory invoice to verify that the advertising fee had not already been included on the primary invoice.
Market Adjustment Fees
Market adjustment fees are extra fees that car dealerships add onto the price of certain types of popular vehicles. This usually occurs with vehicles that go out of stock speedily and since they are still a hot item, car dealerships just add extra fees onto the vehicle purchase price.
The best way to avoid this type of dealer scam is to never pay over the MSRP. By paying more than the MSRP, you are admitting that this type of dealer scam is okay.
Quote and Actual Price Differ Greatly
Another car dealer scam that consumers need to be aware of is when the actual price and the quote price differ greatly. There have been cases when a prospective car buyer has been quoted a set price for the total purchase yet when it came time to sign the paperwork, there was a large discrepancy between what was quoted and what was charged in the end.
To prevent this just ensure that what is being quoted is the exact figure that will be on the paperwork when it comes time to the sign.
Though most car dealerships do business in a fair manner, it is always important to be on guard when it comes to possible car dealership scams that can occur.