Top 3 Auto Dealer Tricks and Scams that You should Avoid

Top 3 Auto Dealer Tricks and Scams that You should Avoid

Avoiding dealer tricks is hard when purchasing a new car. Dealerships offering fixed costs on new cars are typically difficult to come across. On top of that, the car dealership industry is famous for being deceitful and fraudulent. There are more and more people who complain about having misunderstandings with new car dealers.

With their aim of earning more, car dealerships sometimes opt to deceive car buyers. They typically offer their target clients extended warranties that are providing minimal coverage or add-ons like GPS which is already installed in the car. Here is a list of 3 leading auto dealer scams used by many car dealerships.

“Bait and Switch”

This auto buying trick has proved to be quite effective for some dealers. This is actually one of the most commonly used tricks. The scenario is that a buyer will most probably see an ad for a dream car in a local newspaper. Yet when they come to the dealership, they will be told that the car they have been looking for is not currently available. Afterward, the dealer will try to shift the buyer’s attention to another car. A more expensive one.

“It is the Best Time to Buy a New Car”

Most of the time, a car buyer will hear a car dealer say, “Today is the best day to buy.” Although it may sound good, it is not always the case. Because the dealer may try to rush you into a car deal. However, remember that other dealerships might offer better discounts. In other words, never let someone decide for you whether you should buy a new car or not.

“Yo-yo Financing”

Car shoppers who have bad credit are more vulnerable to this trick. This is the basic scheme: a car dealer will sell a car to you on the spot, just before the financing is done. After a few days, you will receive a call and the car dealer will tell you that your loan application has failed.  They will ask you to go back to the dealership to sign a new contract with new terms.

These are the most common dealer tricks that you may encounter when you talk with a car dealer. To avoid problems, just find a reliable car dealership. In case you become a victim, seek help from a dealer fraud lawyer.