Three Auto Dealer Scams You Should Be Aware of
Today, we are going to concentrate on three types of automotive fraud that are rather frequently used to deceive unsuspecting and naïve car buyers.
- Lying the customers about their credit scores
The scenario of this type of automotive fraud is the following; when a car customer doesn’t know his credit score, the car dealership turns into a “Lie” dealership. They start lying about your actual credit score; telling that yours is too low and you cannot qualify for the loan, so you must pay higher interest rates. Such an example of auto dealer scams is a very frequent one and can be practiced with even those car buyers who have really good credit scores but have no idea about this. To avoid this scam, you should make sure YOU are the first person to know your exact credit score. This will surely help you, as when they try to scam you with this trick, you will be able to put an end to it.
- Used cars sold on an “as is” basis
This type of automotive fraud usually takes place when you are shipping for a used car. Used cars which are in a good condition are very often sold with some kind of a warranty with them. But if the vehicle is a wreck or a previous taxi or rental car, or a vehicle which has undergone a major accident, it cannot be sold with a warranty. So, if the dealer tells you that the car is sold only on an “as is” basis, then he is surely hiding something. To avoid this scam, you just need not buy a car without a warranty with it.
- Lease or loan penalties
When you buy or especially lease a car, you are told beforehand that you will have to pay some fees, but the thing is that many dealerships keep silent about the penalties of, for example, early lease termination. These can cost you thousands of dollars. So, the best way out is to stay in the lease and not to break the contract early. Also, to avoid such scenarios, you had better read your lease and loan contracts very attentively.
These were the three auto dealer scams we wanted to warn you about for today. Keep following our postings.