Tag Archives: Auto Scam

Curbstoning relate to car dealers who try to avoid the law by selling their vehicles on the street, by pretending to be private sellers. In this auto scam dishonest car dealers use curbstoning as a means of bypassing  their state laws which govern the sale of cars. Inferior Cars Curbstoning car dealer usually use this car scam in order to offload the type of vehicle they would resist to sell through their dealership. There will be several cars for sale in the same place, often parked along the curb, hence the name ‘curbstoners’. Typically, these cars will be ones with problems, that are hard for the dealers to sell …

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A car dealer is often represented as a vermin just waiting for an unsuspecting customer to come along. This occurs as several people suppose that they are always on the prowl for unsuspecting buyers that are not very knowledgeable about cars. This can be unjust as someone can argue that there are car dealers out there who would not cheat just to get an extra profit. How do you tell the diversity? In order not to become a victim of car dealer fraud, look at the following auto financing scams. Yoyo scam You will be allowed by the dealer to bring the car home as soon as possible. The …

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DealerFraud.org continues to inform you about the some measures you could take to avoid becoming a victim of auto scams. Generally, it is recommended to keep with you a camera, paper and pen

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Scam 4: The pay off loan or lease scam The car dealer’s newspaper advertisement is constantly saying that they will pay off your entire remaining loan or lease. This is true literally, but there is no hint about the consequences of breaking the loan or lease contract. Actually the penalty for breaking the contract for your current car costs thousands of dollars. Of course, the car dealer pays you off the remaining loan or lease, but the penalty of thousands of dollars is subject to you. The ads are just trying to mislead you into buying their car so that they can profit more. Never believe in these misleading …

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In case a buyer has a bad credit but wants to buy a car, his financing options are not wide. For that reason buyers turn to car dealers who can provide the money required for the new car. Car dealer scams associated with car dealer loans are the following: Previously Wrecked Car Sold “As Is” You will be asked to sign documents that will state the car’s condition and that you agree to buy it “As Is”. In this case you have no warranty. If something happens to the car, there will be practically nothing that you can do. The best thing to do to avoid this car scam …

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The process of credit approval starts with the completion of the car loan application which is then taken to the finance manager for approval. Generally, some of the most reputable car dealers have national and local lenders and even internal financing capabilities and may get convenient car loan rates for their buyers. However, in some cases buyers may fall victim to a very common car buying scam in which the fraudulent dealer may use the financial transactions to maximize on his/her profits. This auto scam is usually designed like this. Your credit application is returned to you with the citation that your credit is not good and therefore you …

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You purchase a new vehicle from a car dealer and arrange a finance package with a low APR. You drive away with your vehicle and a few weeks later you receive a call from the dealership that explains that they have received word from the finance company and they have declined the low APR you requested which was subject to finance or loan approval in your contract. The truth is that when you supply your financial information to the dealer he/she is able to determine exactly what APR you are eligible for depending on your income, so if you don’t misrepresent your income they should know immediately what your …

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Generally, most car buyers are well aware of common dealer tricks and dealership scams. However, there are car buyers who are less experienced can easily fall for commonly used dealer tactics. Remember that when selling a new or used car, the car dealer makes profit in two ways. First they profit from the sale of the vehicle itself, and second, from the interest paid by the buyer. One thing that you should keep in mind when you intend to buy a vehicle is that the dealer will, most probably, try to trick you into paying as much for the car as possible. Dealership Mark-Ups is one of the tricks …

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Each year thousands of people unwittingly buy cars that have been severely damaged in accidents. It’s not too difficult for dishonest rebuilders to patch such vehicles up quickly and turn a profit by selling them to unsuspecting buyers. To avoid becoming a victim of such auto scams, keep reading our blog. 1. Understand what happens to “totaled” vehicles. If a car or truck is damaged so badly that the cost of repairs exceeds its value, insurance companies typically declare the vehicle to be a total loss and pay out a claim to the owner. Then many insurers sell these totaled vehicles at salvage auctions. Sometimes the cars get purchased …

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It has been shown that one out of three used cars has something to hide. That could be outstanding credit, odometer rollback, etc.. That is why car dealer fraud cases are amongst the most common issues. Vehicle cloning is a used car fraud that has become rather widespread today. To avoid being a victim of such a  auto scam, follow our tips given below. 1. Registration papers: The registration papers give you some initial information about the vehicle. Make sure the license plate on the car matches the number on the registration papers. Make sure the owner’s name matches the seller’s – and ask for a picture ID. 2. …

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