How to Avoid Car Trade-In Scams
There are a lot of car dealers out there who try to use trade-in scams to make much profit. Being aware of the commonly used car scams is the best way to protect you from becoming a victim.
Some dealers will scam you by telling that they will pay off your current lease or loan, no matter how much you owe. Remember that a lease or a loan is a financial contract, and you are not able to eliminate one when buying a new car. Through this trade-in scam the dealer will most likely try to make you pay higher monthly payments on your new car. Avoid this scam by simply waiting until your current lease is expired or paid off.
Beware of car dealers who forget to pay off your trade-in after the deal is complete. A lot of car buyers receive notices for a collection agency a few months after they trade-in their car and are surprised to learn that the dealer never made any payments. You can avoid this trade-in scam if you get all pay-off documentation in writing.
Always have your trade-in inspected by a mechanic in order to avoid car dealers who report “all sorts of problems” with the vehicle.
Never sign any documents if you feel that the dealer is trying to trick you. Simply walk away, and find a reputable dealer who will offer a good deal.