Trade-In Unwind Scam
This car scam usually involves the trade in that you owe money on. This car scam happens when the dealer intentionally holds your trade in as a hostage. The money you put down as a down payment is locked up in the dealership. Your car loan is considered to be delinquent, because the dealership has promised but in fact haven’t paid off your loan.
The best way to avoid this car scam is to get all your car loans pre-approved even if you have bad credit. Thus you become your own finance manager and are empowered to take care of your own finances. You are also allowing yourself to focus on what is really important, the price of the vehicle you are purchasing. There are several other dealer tricks that you will be able to avoid if you get your loan pre-approved.