Car Sales Fraud
Fraudulent practices in the used car department increase as new car sales are slowing down. Car dealers today use car sales fraud just to keep the money flowing.
According to some predictions by the end of the year, the US automakers will drop to less than a 50% share of the market in US new car and truck sales. Sales figures are dropping not only for the Big Three but for virtually all makes. That’s why consumers should be more careful now if they decide to visit a local car dealer and purchase a used car.
One of the newest dealer scams includes the tire care package that some dealers are packing into your monthly payment, sometimes without the buyer even knowing it. The tire care package is really not much more than just a scam when the consumer pays the car dealer for tires that he might (or might not) need in the future.
Another type of car sales fraud is the “negative equity scam”. This happens when the dealer informs that your trade-in vehicle is not worth what you owe on it “but don’t worry, we’ll pay off your trade-in anyway”. What they don’t tell you is that they are jacking up the price of the car they’re selling you too.
Another common example of car sales fraud is the Gap Insurance when the dealer sells you a high priced guarantee. Generally, the dealer promises that if your car is stolen or wrecked and your own insurance won’t pay it off, then they’ll put money toward the payoff too.