Detecting Car Fraud and Dealership Rip-Offs


It`s a common knowledge that car dealers get a bad reputation – deservedly so in major cases. They are authors of a number of interesting dealership rip-offs. Nearly every car dealer undertakes at least one attempt to commit car fraud and rip you off. One of the most important things to know about dealership rip-offs it that a customers never find out most of them until it`s too late. Tricks that dealers use to pack the payment the consumers may be beyond the perception of an average customer. But if you follow the tips given below, you`ll probably get an expert in detecting dealership rip-offs.

Some of The Popular Dealership  Rip-Offs

#1 Never negotiate on the basis of monthly payment

Negotiating with a dealer based on monthly payment means giving him chance to pack the contract with numerous expensive add-ons. These add-ons will surely cost you a fortune. Security system, GAP contracts, surface protection and others are among add-on products the dealers try to tie on the customers.

# 2 Don`t overpay for so-called “Certified” or “Certified Pre-Owned” vehicles

Not every vehicle sold as “Certified Pre-Owned” can be as certified as it`s advertised. Dealers can cheat the customers selling vehicles as “CPO” to make additional profit; as a rule, consumers end up paying 2-3 thousand dollars more for such kind of cars. Dealers buy from automakers the right to advertise the vehicles as “Certified” or “Certified Pre-Owned”. But when vehicle owners come back to the dealership, the dealer refuses to do inspections and repairs. Even if they are required by “Certified Pre-Owned”.

# 3 Don`t come back to dealership to “re-write” the paperwork or sign a new contract

Another widely-spread car dealer fraud is asking the customer to come back to the dealership to “rewrite” the paperwork. Moreover, to sign a new contract after he has already bought a car. It happens when a necessity arises to qualify for a new car loan annual percentage rate. Even if they require any down payment. That`s why dealer calls the customer to come back to dealership to sign a new contract with new terms. He will back date the new contract to the date of the first contract. Accordingly, the customer will be due to pay additional charges. So if they ask you  to come back to dealership you`d better go there with a lawyer.

# 4 Always find out car history

Remember, car dealers always tend to disclose important facts about the past of the vehicles they sell. They must let you know whether the vehicle was involved in a prior accident or crash. Likewise,  whether it was a prior rental car or lemon law buyback. If the dealer fails to do it he is committing car fraud and customers facing it can claim refund.