Top 3 Car Dealer Scams to Avoid
There are both honest and dishonest car dealers in the auto market. The honest ones are nice people who will never use any dealer scams to cheat you or rip you off. The dishonest ones, on the contrary, are experts in cheating and defrauding car shoppers.
Car dealer tricks and scams are numerous. In this article, you will learn about the most common 3 scams that fraudulent dealers are prone to practice.
Offering an Extended Warranty
Offering the car shopper to purchase an extended warranty is one of the most common car dealer scams. This scam is one variety of car financing fraud. The dealer usually asks the car purchaser to buy an extended warranty otherwise, the car loan will not be approved. However, the buyer should know that purchasing an extended warranty is not mandatory. Thus, if you do not buy an extended warranty, you will still be approved if you have a high credit score.
Window etching is usually done to protect vehicles from being stolen. The process involves sticking the car’s VIN to the window. The stolen vehicle’s parts will, later on, be identified and the thieves will be punished. Some dealers charge huge amount of money to perform window etching. Some dealers charge up to $1000 for window etching. This is a scam, as you can go to a car shop and purchase a good window etching kit at $50 and do the work by yourself.
Spot delivery or yo-yo financing car dealer scams are two similar scams practiced by some car dealers. The scenario is the following: the buyer enters the dealership without knowing what credit score he/she has got. The dealer tells the buyer that he/she can take the car home on the same day when the paperwork is just signed. The happy buyer hurries home to enjoy his/her new vehicle. Two or three weeks passed, the dealer calls to inform that the financing was not approved and that the owner of the vehicle should either return the car or sign new documents with new terms and higher interest rates.
The list of dealer scams and tricks is rather long. Follow our blog and get information about the newest and the most common auto scams in the book.