Most Common Car Scams Part II
Scam 4: The pay off loan or lease scam
The car dealer’s newspaper advertisement is constantly saying that they will pay off your entire remaining loan or lease. This is true literally, as this is one of the most common car scams they practice. There is no hint about the consequences of breaking the loan or lease contract. Actually the penalty for breaking the contract for your current car costs thousands of dollars. Of course, the car dealer pays you off the remaining loan or lease, but the penalty of thousands of dollars is subject to you. The ads are just trying to mislead you into buying their car so that they can profit more.
Never believe in these misleading ads, stay in your present loan contract and never break the contract.
Scam 5: The forced warranty scam
This scam is also among the most common car scams and it is very easy to detect. Just after you have made an agreement with the car dealer and before you sign the contract, the sales manager will tell you that you cannot get the loan unless you buy the “required” warranty. They would say that the warranty is a necessity for the loan because the bank won’t allow it if you don’t have it.
Yet again, the easiest way to avoid this forced warranty scam is not to finance your car from car dealers.
Scam 6: The forget trade in scam
The “forget trade in scam” is also listed in the common car scams. It is always found after several months of car purchase. The car dealer informs you that they would pay off your remaining loan for your old car that has been traded in, but they never do. You are in charge for your loan responsibility, not the dealer. The bank does not know the agreement between you and the dealer and they hold you responsible for the late payments.
The best way to pass up this scam is to pay off your existing liabilities on your old car before you buy a new car. This way you can get the title from the bank after you eliminate the debt, sell your old car and then buy a new car without falling for the scam.