Tag Archives: car scam

Yo-yo financing fraud, also known as spot delivery fraud, is a rather common practice among car dealerships. Here is how this scam is designed. Customers with below average credit are tricked into driving cars off without finalizing their loans. While the customer is at the car dealership, financiers tell him/her that he/she has excellent credit and received a good interest rate on an auto loan. Then the dealer gives the buyer the keys to the new car and tells him/her that they may drive away. A few days later, the buyer gets a phone call from the dealership informing him/her that the loan fell through because he/she did not …

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Looking for a good car dealer is crucial since a fraudulent dealer can make a huge profit on your hard earned money. Buying a used car is already a risk, so you should do your best to find a car dealer who won’t try to defraud you.  Here are some basic strategies for identifying honest car dealers from dishonest ones. When buying a car be especially careful in case the salesman tells you about the "Patriot Act". This is one of the things that mean scammers always use. The scenario is as follows: a car buyer comes in with his/her own car financing and then the sales agent forces …

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Car dealers use trade-in scams to increase their profits on each deal. Be informed of the most common car trade-in scams and keep away from being a victim of car trade-in scam. In case the dealer says he will pay off your current lease or loan, no matter how much you owe, do not agree. Remember that a lease or a loan is a financial contract, and there is no trick to eliminating one when buying a new car. Since this supposed “deal” will only end with you making even higher monthly payments on your new car, it’s best to simply wait until your car is paid for, or …

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This auto dealer scam allows a dealer to make a quick profit from car buyers. Even though it is legal, it is considered to be a scam because auto dealerships are able to recover these preparation fees from the manufacturers. Generally, preparation fees cover the checking of fluid levels, peeling of plastic off the seats, vacuuming the interior, and washing and waxing the exterior. It takes about 2 or 3 hours of work. They may tell you that you must pay a fee for this, however you don’t have to pay anything because it is already paid for and listed on the MSRP. The car scam lies in the …

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There are several common car trade in price scams, tricks, and bargaining tactics when buying a new or used car from a dealer. Knowledge of these practices will give a car buyer an advantage one can at least be aware of what is happening in the process. Knowing how to avoid them is even more helpful because the result can be a far more attractive price one receives for a traded vehicle. Negotiating Trade in Price Right from the very beginning, the trade in price should be negotiated separately from the purchase price of the car one is interested in buying. Indicating real interest in buying a car will …

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A salvage car is one that has been involved in a major accident and been deemed to not be worth repairing by an insurance company. As an insurance company declares a vehicle, it pays the maximum market value of the vehicle to the insured and then disposes of the vehicle by auction it off to the highest bidder. The vehicle is then issued a special type of title by the states where the vehicle is registered. Any salvage title has a stigma that is always attached to it and is worth nowhere near as much as than comparable vehicle that has a clean title — even if the vehicle …

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Insurance are paying millions to defend themselves against car scams where people stage an accident in the hope to making some gains through insurance claims. How do these scams affect you? Besides any possible deaths could occur from a planned scam gone wrong, it is not the insurance companies who pay the consequences of these wicked scams. Factually the innocent and honest citizens end up paying higher premiums so insurance companies could cut their losses. You should learn how to prevent getting in the middle of these scams and should contact your insurance if you feel you could be scammed or are a witness to a scam. You could …

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Step1 Avoid car trade-in scams wherever the dealer states he will pay off your current lease or loan, no matter how much you owe. Remember that a lease or a loan is a financial contract, and there is no trick to eliminating one when buying a new car. While this supposed “deal” will only end with you making even higher payments on your new car, it is better to wait until your car is paid for, or your lease has expired. Step 2 Look out for car dealers who expediently forget to pay off your trade-in after the deal is complete. Many new car buyers are shaken as soon …

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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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Scam 1: The straw purchase scam Here a straw purchase means someone purchases an automobile for other people who, due to poor credit, cannot purchase it themselves. In order to make you buy the car without any hesitation, the car dealer may assure you that you can get a car loan even if your credit record is not very good. Moreover, they will tell you that you can build your credit by using this car loan, and the only way to do this is to find a co-signer for your contract. And next you will find out that the co-signer is not the primary borrower of this loan but …

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