How to avoid several Car Dealer Scams?
There are hundreds of car dealer scams that may be practiced by car dealers. At the same time, there are various ways regarding how to avoid those scams. Hence, in this article, we will tell you how you can avoid several car dealer scams that are practiced by some dealers rather often.
The first scam that is practiced really very often is the so-called Window etching scam. The essence of this scam is that the dealer may charge the buyer a considerable amount of money for etching their VIN on the window of the vehicle. They do it so that it can be recognized later on if stolen by some thieves. Sometimes, the dealers say that etching is quite free. At the same time, they add an extra payment to the monthly payment so that the buyer does not feel much difference. Hence, if the dealer says window etching is free, make them put it in writing that the service is really done free of charge for the buyer.
The thing is that window etching is not a hard thing to do. One can just buy an etching kit and do the etching at home by themselves without worrying about the possible extra fees that the dealer may impose on them.
Another car dealer scam that is usually practiced by some dealers is the ”forced warranty scam.” The thing is that sometimes a sales manager may tell you that in order to qualify for the loan, you have to purchase an extended warranty that offers vehicle coverage for up to 3 years. The extended warranty usually costs up to $2000-$3000. However, this is just a trick that dealers practice in order to get extra profit from the deal.
So that to avoid this type of fraud you just need to ask them to put it in writing that unless you buy the extended warranty, you will not be able to get the loan. Of course, the dealer will refuse to put such a nonsense in writing and they will find another way for getting approval for your car loan.
Credit score scam
Among common car dealer scams, there is another one known as a credit score scam. This is when the sales manager says your credit score is too low to qualify for the loan. So you should agree to pay higher interest rates. However, remember that scammers practice this fraud on everyone independent of the fact whether the customer is real with a bad credit or a good one. This is just another way to make people pay more money than they have to.
In order to avoid this type of fraud you just need to get your own copy of your credit report and see whether you qualify for the loan or not. You can get such a document from Equifax and have it with you whenever you enter a dealership to see a vehicle.
These are some dealer scams that you can avoid quite easily with the right preparation. If you want to share your own experiences with us, you are welcome to comment below.