Top 3 Car Dealer Scams to know About

Top 3 Car Dealer Scams to know About

Car dealer scams and tricks are innumerable. Following are the top 3 car dealer scams that auto dealers use to practice to cheat unsuspecting car buyers. The more you know about these tricks, the better you will be able to cope with them when purchasing a vehicle.

  • “Bait and Switch” scam

This is when the dealer uses false advertising tactics to lure the potential buyers. Usually, the dealer puts an advertisement of a dream car in a local journal. The price of the car in such advertisements is usually too good to be true. After seeing an advertisement like this, people rush to the dealership not to miss the excellent offer. However, everything is preplanned by the fraudulent dealer. The dealer is not going to sell the vehicle at the price given in the advertisement; it is just a “bait” for unsuspecting car buyers. The dealer is rather going to switch the buyer from the advertised vehicle to a more expensive one.

  • The spot delivery scam

This is one of the most common car dealer scams there in the business of selling vehicles. The scenario is that a buyer may be allowed to take the new vehicle home even though the financing has not been approved yet. There are plenty of risks in doing so, as the dealer may call you back in a day or two informing you that the financing fell through because of the low credit score you have got. In such a case you may have to sign another contract and agree to pay more money for the vehicle or you may have to return the vehicle and pay some fees for mileage or wear and tear.

  • Title washing

Another commonly practiced car dealer scam is the so-called title washing. Title washing is the registering a vehicle in another state to conceal its actual history from the buyers. Vehicles that have been involved in major accidents or that have been flooded usually get salvage titles by the insurance companies. These vehicles are rather dangerous for people to drive. Thus, some dealers re-register vehicles to be able to clear their titles and re-sell them as used cars.

Title washing, spot delivery and “bait andB switch” advertising practices are top 3 car dealer scams that are practiced by some dealers. Educate yourself before entering a dealership, otherwise, you may fall a victim of any of the above-mentioned scams.