How to Prevent Car Dealer Scams
Car dealer scams do “chase” car buyers. Every year the number of car dealer fraud victims increases rapidly. The main concern is that newer and newer car selling scams are designed every day which are mainly based on older “classic “scams. Here are some of the most common auto dealer scams.
• It is a common scam when a dealer claims that you are not eligible for competitive financing rate with your credit score. This is only true if you miss your payments or pay them with delay. Some dealers may try to convince you that the only option you have is to accept the financing and terms suggested by them.
To avoid such car dealer scams, keep a good track of your payments. Try calling the credit bureaus for your credit report.
• A car dealer may also misrepresent the real price of the car. Try to find out beforehand what is the real price of the car before entering the negotiations phase.
• Another car dealer scam is designed by providing a low payment per month. Naïve car buyers may fall for this, but informed ones know that this means that either the down payment is a huge amount of money or the term is for the first few months only.
To skip such car dealer scams calculate how much you want to pay per month and present your own terms to the dealer.
• The dealers may convince you to buy luxurious cars even before you are over with paying loans for your current car. They might insist that the remaining payments of your current car will add to the new one. Think twice before agreeing since the consequence may be that you will have to pay even more than the current payments you are making.
This is not the full list of scams; there are other car dealer scams as well and unfortunately listing all of them is nearly impossible. The only surefire advice is staying alert all the time and reading all the paperwork.
If you have any further concerns on this topic, feel free to contact dealer fraud attorney Hovanes Margarian.