Vehicle salesmen are well known for practising a large number of scams. Consumers are frequently faced with smiling sales people who try to increase the dealership`s profit by all means, no matter whether it`s legal or not. Auto financing fraud occurs most often. All that is necessary for that is just to mix up papers here, switch a number there, or use a sweet tongue to persuade the customer to buy add-ons he was not initially interested in.
Car dealer fraud most often associated with auto financing is required options scam. Customer must become alerted when the financial officer at the dealership tells him that extra options are required for getting the auto loan approved by the bank or other credit organization. Some auto dealerships will try to append extended warranty, life insurance, VIN etching or one of the many expensive add-on products with reservation that the credit organization or the bank “demands” it to approve the financing. But it`s not true, moreover, in many states, such actions are called car dealer fraud and considered illegal. Add-on products are source of additional profits to car dealership. That`s why salesperson will try to foist off them on the customers by all means.
If a bank or credit organization is really worried about customer`s ability to pay off a car loan, they wouldn’t want him to append even more to the principle in “required” options.
How to avoid required options scam?
If a salesperson or financial officer insists on including any of these “options” in the contract to have the loan approved by bank or credit organization, the customer must ask him to place the requirements in writing for checking with his State Attorney. One can say for sure that the “required options” will vanish without a trace. If they don`t concede just leave the dealership. Until the customer hasn`t signed the final documents he has no financial obligations.
Consumers who suffered from required options scam must turn to experienced auto dealer fraud attorney. After evaluating all aspects of the customers` cases he will explain all options available to them. In some states, consumers who fell a victim to car dealer fraud are required to contact the dealer first to have the problems fixed. If the problems remain unsolved they have right to take any legal action.