Credit Associated Car Dealer Scams.
You can avoid merely any kind of Car Dealer scam if only you pay attention to the signs. Experience shows, that there regularly appear newly formed car dealer scams. Credit Associated Car Dealer Scams are in the line. The information concerning them should always be up to date. Most of the stressful ones are Credit Associated Car Dealer Scams. They include a number of delicate nuances the dealer can cover in the contracts.
One of the Credit Associated Car Dealer Scams is Straw purchasing . If your credit is so bad that only a co-signer can help, think twice before getting into that mess. However, if you still want a car, then shop around for financing. Even with bad credit, there are loans available without needing a co-signer.
The Federal Trade Commission’s Trade Regulation Rule on Credit Practices requires a Notice to Co-signer form. It should include any vehicle retail installment contract or lease that includes a co-signer. The Notice to Co-Signer form notifies the co-signer they are equally liable for the debt. If the signer does not fulfill the responsibilities of the contract, the responsibility falls on the co-signer. The co-signer should get a copy of this form. Moreover, he should read it thoroughly before signing it. If there is another contract to sign, destroy the first contract before signing the second one.
Dispute Resolution Agreement
Forcing to sign a dispute resolution agreement is another type of car dealer scam. When signing the final paperwork, the sales person may ask you to sign a “Dispute Resolution” agreement. Lawyers call it “Conflict Resolution” agreement. In other words, it is your agreement to go to arbitration, not court if a problem arises. Although there is nothing wrong with arbitration, read the fine print carefully.
This fine print will give you some clues about the reason for the agreement. It may state that the car dealer chooses the arbitrator. Or that the buyer is responsible for all arbitrating fees. Or even that there is no appeal if the buyer loses the decision. It may even state that the buyer cannot enter into a class action suit for any reason.
There is a reason a dealer is asking you to sign this agreement and it should be a red flag to any buyer who wants to avoid car dealer scam. Ask a sales person if an arbitration agreement is required and read the fine print before a purchase. If any of the above rules are stated in the agreement, run; don’t walk to another dealer that will not try this car dealer scam.