Common Car Trade-In Scams
Avoid car trade in scams wherever the dealer states he will pay off your current lease or loan, no matter how much you owe. Remember that a lease or a loan is a financial contract, and there is no trick to eliminating one when buying a new car. While this supposed “deal” will only end with you making even higher payments on your new car, it is better to wait until your car is paid for, or your lease has expired.
Look out for car dealers who expediently forget to pay off your trade-in after the deal is complete. Many new car buyers are shaken as soon as they receive notices for a collection agency a few months down the road as the dealer never handled the transaction as promised. Yet again, there is methods to avoid this type of car trade in scams by ensuring that you get all pay-off documentation in writing, or simply wait until you vehicle is paid off before you trade it in for a new car.
Have your trade-in examined by an independent mechanic in order to avoid car dealers who report “all sorts of problems” with the vehicle. By offering independent and recent documentation, you can successfully rebut a dealership mechanic who claims your brake pads are almost gone, or that your engine may need a complete overhaul before it can be resold.
Acquire a copy your current credit report to avoid trade-in scams where the dealer tells you that you are ineligible for lower interest rates due to questionable credit scores. This type of scam is rather ordinary, but it is easily discouraged once you produce a real credit report. Keep in mind, a car salesman should not know more about your credit score and financial history than you do.