Several Types of Car Scams to Avoid
1. One of the scams the dealer may use to make more profit is the VIN# Scam. This scam happens when the dealer tries to charge you for having the VIN# etched on the window because it is required by the finance company. This is not true.
2. Another dealer fraud is the forced warranty scam when the auto dealership will insist that you purchase a $2000, 2 or 3-year warranty in order to qualify for the car loan. The dealer is simply trying to scam you and the truth is you don’t need the warranty.
3. Be wary when the dealer says the phrase “subject to loan approval”. In fact, all car loan proposals will have this phrase in them, but there are only a few unscrupulous dealerships out there that will try and con more money out of you by quoting this phrase as the reason why. You don’t have to worry if you have good credit. Car dealers usually use such car scams on consumers that may have bad credit. The best way to avoid this scam is getting your car loan from a bank or other financial institution.
4. The ‘dealer markup’ is another fake fee added by car dealers on purpose to increase their profits from the sales. This fee is usually seen on an orange sticker attached to the manufacturer’s suggested retail price.
The above-mentioned scams are just several of numerous scams used by car dealers to trick you. When you are shopping for a new car, try to find a trustworthy car dealership to avoid being scammed.