5 Car Purchase Scams You Should Be Aware Of
Buying a car is so exciting, but full of dangers as well. As a matter of fact, you should educate yourself about car purchase scams to make the right decision. Keep in mind that nowadays there are many dishonest car dealers. In other words, they are ready to take any deceitful step to increase their profits. So, if you are not careful when purchasing a car, you may end up losing a lot of money. To protect you from car dealers’ cunning traps, we will refer to 5 prevalent car purchase scams.
Title washing car purchase scams
The title washing is a popular car purchase scam that many unscrupulous car sellers use to trap car shoppers. Before discussing this car scam, it is essential for you to have a clear idea about salvaged vehicles. Typically, cars can get damaged because of some natural disasters. Sometimes they can be wrecked and later car sellers repair them. These cars have the status of salvaged vehicles. It is true that salvaged vehicles may have serious problems, even if they look perfect. A title washing scam means concealing the salvaged status of a car. If you don’t want to get into this trap, explore a vehicle history report in a proper way. You can have this information for free from the National Insurance Crime Bureau’s VIN Check.
Escrow car purchase scams
Since online car buying is becoming popular nowadays, the number of escrow account car scams has increased greatly. This is one of the most common scenarios of this car scam. You want to purchase a car for a long time, but don’t have enough financial means. Finally, you come across a very alluring advertisement on an online website. The car of your dreams is on sale and the price is simply irresistible. Thus, you agree to deposit your money into an escrow account without knowing that it is fake. After taking this step, all of a sudden, you find out that both your money and car have disappeared. In a word, make sure that the seller is using a verified online escrow service. In addition to that, don’t pay attention to doubtful advertisements that seem too perfect to be true.
Negative equity scams
As a wise car shopper, you shouldn’t believe the car dealer who informs you about ‘’negative equity’’ in your trade-in. Moreover, sellers may attempt to persuade you that they will pay off your trade, regardless of how much you owe. Be aware that your negative equity may be rolled into the new contract. In this case, you will have to pay a huge amount of money not for one, but for two cars. Don’t forget to read your contract carefully before signing it. Make sure that whatever the car dealer promised is present in the contract.
Four-square car purchase scams
What is a four-square car scam? Actually, a four-square car scam is a four-square approach that car dealers often use during the process of negotiations. This four-square diagram comprises four elements:
• Cost of the new vehicle
• Trade-in car value
• New car loan payment per month
• Down payment, which is necessary for reaching that monthly payment.
Skilled scammers are great at confusing you with the help of this car scam. As a result, they can vacuum additional financial means from your pocket. You should explore the components of this approach in detail not to appear in such an unpleasant situation.
One day only car scams
One of the typical situations that describe this car scam can be this one. You find a car, which is dear to your heart and start the negotiation process with the car dealer. The dealership offers you ‘’an excellent deal’’ but emphasizes that this price is good for only that day. So, if you come on another day, the cost of the car will be much more expensive. Watch out, you are probably dealing with a scammer. Obviously, this ‘’perfect deal’’ has a dark side, for instance, expiring incentive, rebate programs or some other problems.
You should improve your awareness of the tricks that dealerships use to cheat car shoppers. In this case, you will be able to make the right car purchasing decision.