What You Should Know About Common Car Buying Scams
Car sales, both new and used, are the biggest consumer rip-offs nowadays. Not seldom common costumers meet fraudulent sellers practicing car buying scams. Questionable advertising, like bait and switch methods, help them draw people with confusing offer conditions. Nonetheless, many of the dealer tactics are perfectly legal.
Customers should be particularly aware of car dealers scams. One of them is the promise to pay off their old vehicle loan no matter the amount owed. They will pay off your current vehicle loan and tack the existing balance onto your new loan. In fact, you will be paying an amount that far exceeds the value of your new vehicle by paying for your new vehicle and your old vehicle.
“Upside down” Financing
This is the situation when you end up owing the bank or finance company more than your vehicle is worth. Gab insurance can over your Upside Down credit loans. However, you should consider that these policies have numerous stipulations and are hard to find. If your vehicle is stolen and you still owe a considerable amount, then the insurance company will give you the insurance reimbursement.
The dealers’ primary concern is their commission, and they don’t care how you will end up in car buying process. You can avoid upside down credit not to be tricked by salespeople. Just do not pay off your current loan. Be careful to avoid such car buying scams. It would be better if you find a loan with the best possible interest rate on your own. Try to stay away from the help of your car dealer.
Car dealers will most likely come up with almost any monthly payment customer suggests. However, they will not do it by giving you a break on the price. Moreover, they will extend the time it takes to pay off the vehicle. The total cost of the vehicle is what you need to consider before you sing the paperwork.
If you are buying a used car you should examine the vehicle carefully. Salesmen working at used car dealerships are very good at covering up scratches and blemishes. Have an independently licensed car mechanic examine the vehicle you are considering for purchase. Remember that used vehicles often come without extensive warranties. If you notice any problem have the car dealer repair it before signing the final papers.
One of the common car buying scams dealers practice is removing original tires from low-mileage vehicles. Later on they replace them with worn tires. So pay careful attention to the condition of the tires of the vehicle you are buying. If the condition of tires is not good enough ask the dealer to replace them. Most probably the dealer will change the tires to make the deal. Before you sign the final papers make sure you clearly understand everything. Keep in mind that car dealers use different tricks and dealer tactics to make profit. Be sure that you walk away from the dealer who does not completely satisfy your purchase needs.