Today there are some dealerships, which can take any step to increase their profits. To achieve this goal, they use deceptive tactics and take advantage of consumers. The key to preventing bad dealership practices is educating yourself about the most common auto dealer frauds. If you don’t want to allow unscrupulous dealers to cheat you, explore the list of bad dealership practices below.
Non-disclosure of material facts concerning the vehicle
You should keep in mind that the dealer must disclose ‘’essential facts’’ about the automobile. Regardless of the fact whether you ask for this information or not, the dealer mustn’t conceal it. For example, sometimes the car dealers fail to let you know about the vehicle’s dark secrets. You drive the car for a certain period of time and find out that it experienced accidents previously.
Bait and switch
Bait and switch is among bad dealership practices. This fraud occurs when the dealer uses alluring advertisements to attract consumers. Unsuspecting car buyers are certain that they will get a perfect deal, but face an unpleasant surprise at the dealership. The fall into despair when it turns out that the advertised vehicle is no longer available. The dealer’s next step is persuading a car shopper to purchase a more expensive vehicle with the help of aggressive tactics.
What is add-on concealment? Actually, the characteristic feature of this scam is failing to inform the buyer about the inclusion of certain add-ons. That is to say, the dealer includes these add-ons in the final price of the automobile. However, the car shopper has no idea about it and appears in a frustrating situation when the truth is revealed.
Are you planning to trade-in your old car? In this case, you should practice caution when negotiating the trade-in price with the dealership. If you are unaware of your trade-in vehicle’s value, you may fall for this scam. That’s why, prior to approaching the negotiation table, you should have a clear idea of the vehicle’s market value. Consider using the Kelley Blue book to have an access to this information. The dealer may offer you a very little sum of money for the car and later sell it with a higher price.
You should be wary of the co-signer fraud, as it is one of the widespread bad dealership practices. Did you make up your mind to co-sign for your friend’s or relative’s car loan? At this point, you should be informed that you have the responsibility of making payments if the primary car buyer fails to do it. Typically, certain dealers don’t let the co-signer know about it. Co-signer fraud occurs when the car buyer has a negative credit history and isn’t eligible to take a car loan. So, ‘’helpful’’ dealers offer car buyers the option of asking someone else to act as a co-signer.
Here is a typical scenario of yo-yo scale. You finish the negotiation process with the dealership successfully and drive the vehicle home. In a week you receive a call from the dealership. Of course, this telephone call is a great surprise for you, as you were certain that the car is already yours. So, you think that you have nothing to discuss with the car dealers. However, the reality is quite different. The auto dealer ‘’kindly’’ informs that you were not approved for the financing. In addition to that, they may convince you that there is a way out of any situation. In this case, the best solution is keeping the vehicle but paying higher interest rates instead. To avoid such frustrating situations, don’t agree to drive the vehicle home until the financing isn’t approved.
Do you suspect that you or your loved ones became the victim of bad dealership practices? Don’t hesitate to consult with a knowledgeable attorney who can give you a piece of valuable advice.