The Negative Equity Scam: What you should Know about It
Consumers who want to trade in their vehicle and who own more than what their vehicle is worth or what the dealership will actually give you for your vehicle most often become the victim of the negative equity scam. Usually, if you have negative equity the dealership will try to add the negative equity into your new auto loan. When this scam happens you are paying taxes on the entire auto loan. Thus you are actually paying double the taxes on your trade in!
The best way to avoid negative equity scam is by keeping your car for the entire loan term. If you believe you have been a victim of this scam contact your dealer. If the dealer refuses to help you try to contact the dealership district manager. And if this doesn’t work you should contact the Better Business Bureau and file a complaint, as well as contact the DMV in your state. It is also a good idea to contact a dealer fraud attorney in your state you will be able to review your case.