Top 3 Car Scams all Car Buyers should Know About
Car scams can range from simple dealer tricks to more intricate financing frauds. To avoid becoming a victim of fraud you need to educate yourself. Getting the right information can save you thousands of dollars.
The spot delivery car scam
The spot delivery car scam is another common car dealer scam. Here the dealer lets the car shopper take the car home regardless they are done with the paperwork or not. In some cases, they even make the buyer sign a blank document to then fill it in without the need for the buyer to be physically present. As a result, the dealer changes several numbers on the document and calls the buyer a few days later. This is to inform them that the financing failed and there is a need to sign a new document.
To avoid such a car scam, you should make sure that the loan company approves your financing. Only after this, you should drive your car home. Remember to get a copy of all the documents you are signing since it might help you in the court later on if you have problems with your dealer.
The trade-in car scam
If you have an old car and you want to trade it in, you should be careful not to fall a victim of the trade-in car scam. The dealers know that buying a new or a used car is a pleasant experience for the buyer. Hence, a dealer might try to play tricks on you using this knowledge. As a result, your old vehicle might completely have no value due to the tonnes of paperwork and digits provided by the dealer. This is, of course, done intentionally to make the buyer forget about their trade-in vehicle and ask as little for it as possible.
Usually, dealerships highly encourage people to trade-in their old vehicles; they use TV and newspaper ads to do that. What do you think they need this for? Well, the truth is that the dealer plans to pay you as little as they can for your old vehicle to be able to sell it at much higher a price later on.
What you can do in a situation like this is to sell your old vehicle yourself prior to entering the dealership. Believe me; it’s worth the hassle since it will save you hundreds if not thousands of dollars.
The low credit score scam as one of the common car scams
The low credit score scam is among the top car scams. If you enter the dealership without any idea about your credit score, then they might rip you off. Here is how it all works; the dealer tells the potential buyer that their credit score is too low so they cannot benefit from lower interest rates. As a result, the buyer agrees to non-beneficial terms and gets ripped-off.
To avoid such a scenario, get your yearly credit score report online. You can do that with either TransUnion or Equifax. As soon as you have one, try financing your car purchase and getting a loan on your own. You can turn to either a bank or a credit union. By doing so, you will avoid any financing tricks practised by the dealer.
If you think you have suffered dealer fraud, do not hesitate to contact an experienced car dealer fraud lawyer for legal help. The Margarian Law Firm can provide you with proper case evaluation, legal help, and representation in the court.