Three Common Types of Dealer Fraud
Auto dealer fraud is a big concern for many potential car buyers who may easily become fraud victims simply because of lack of homework and knowledge in this field.
N1 Altering the Bill of Sale
Never sign a bill of sale with terms that are “subject to bank approval” or have similar wording. Some dealerships convince customers to sign such a document and release new cars to their happy owners, only to call the buyers back a few days later to say that the loan fell through and they need to come back to sign some new paperwork, which almost always costs buyers more than the negotiated price. Never fall for such a dealer fraud and never drive your car off from the dealership until all the paperwork is filled out completely.
A salesman will ask you how much you are willing to pay each month, and you will throw out a number—say, $450 a month. He will ask how much more you could afford. You add another 50 bucks. In your mind, you were just theorizing, but to the salesman, you just committed to a $500 minimum monthly payment. Instead, when a salesman will ask how much you can pay each month, tell him you will not discuss monthly payments and only want to talk purchase price; you’ll decide on monthly payments after you’ve settled on a fair price.
N3 Misplacing Trade-In Keys
If you are thinking of trading in your old car when buying a new one, someone may borrow your keys to evaluate your ride. If negotiations come to a stop and you try to leave, you might find that they’ve been “misplaced” in order to prevent you from leaving and entice you to make a deal you aren’t comfortable with. Bring two sets of keys with you and this won’t be a problem.
Watch for these auto dealer tricks, else you will most likely need a dealer fraud attorney’s help in the future.