Dealer Fraud – Top 5 Dealer Scams
When shipping for a new car, remember that there are hundreds of auto dealer scams that unscrupulous car dealers will use in order to rip you off. The main goal of such people is to grasp as much money as they can. Also, we should note that not all the dealerships are engaged in such practices, but there are many who will likely try to benefit from your ignorance. So, we will now discuss top 5 auto dealer scams that occur most frequently. By knowing what these scams are, you will be able to detect and avoid them on time. If, however, you feel you are a victim of auto dealer fraud, you can contact our experienced auto dealer fraud lawyer. But before that, let’s see these top 5 automotive dealer scams.
- Bait and Switch
This is one of the most frequent auto dealer scams. The scenario is as follows; you see an online car advertisement that offers a surprisingly low price for a car, one of the newest models by the way. Naturally, you rush to the dealership to find out the car “has already been sold”. And the dealer offers you another one at a higher price….
To avoid such a trick, you had better read the fine print of the advertisement more carefully.
- The Financing four-flush
In this case, a car buyer signs the car purchase documents pays the down payment and takes his new car home. He is in the middle of enjoying the drive, when, for example, 15 days later he receives a call from the dealership informing him he didn’t qualify for the loan and should return the car to the dealership or sign another contract with a higher interest rate. To avoid such a scam, remember that no dealership has the right to require the car back after you have signed all the documents.
- Offering add-ons
Here is the next one of the automotive scams practiced by auto dealerships. The scenario is that a car dealer will offer you add-ons like fabric protection, paint sealant, an alarm system and so on. However, all these will not be given to you as simple presents but you will have to pay extra money for them. To avoid wasting money on unnecessary things, just refuse to buy them.
- Trade-in Scams
There is a long list of these scams but the most frequent one of them is the so-called disappearing trade-in scam. The scenario is that the dealership skips mentioning facts about your old car in their contract. So, it happens you haven’t given them any car and you have to pay the whole price of the new car. This scam is one of the most dangerous auto dealer scams practised ever. And it is sometimes really difficult to detect it. If unfortunately, you have been a victim of any type of trade-in scams, you should contact a good auto dealer fraud lawyer.
This scam is one of the most widely spread ones. Odometer tampering is rolling back the odometer of a car in order to conceal its actual mileage. If you want to avoid this scam, you should, first of all, have a mechanic inspect the car.
Remember, all the above-mentioned automotive scams can be easily recognized if you are a careful and an educated buyer. Remember, also that our experienced auto dealer fraud lawyer is always ready for a consultation.