Unveiling Car Trade-In Scams
Car dealers use trade-in scams to increase their profits on each deal. Be informed of the most common car trade-in scams and keep away from being a victim.
In case the dealer says he will pay off your current lease or loan, no matter how much you owe, do not agree. Remember that a lease or a loan is a financial contract, and there is no trick to eliminating one when buying a new car. Since this supposed “deal” will only end with you making even higher monthly payments on your new car, it’s best to simply wait until your car is paid for, or your lease has expired.
1. Keep yourself far from car dealers who conveniently forget to pay off your trade-in after the deal is complete. Many new car consumers are surprised when they receive notices for a collection agency a few months down the road as the dealer never handled the transaction as promised. Again, you can avoid this trade-in scam by ensuring that you get all pay-off documentation in writing, or simply wait until you vehicle is paid off before you trade it in for a new car.
Take the car to the mechanic to inspect it for you to avoid car dealers who report “all sorts of problems” with the vehicle. By presenting current documentation, you can effectively refute a dealership mechanic who claims your brake pads are almost gone, or that your engine may need a complete overhaul before it can be resold.
Get a copy of your recent credit report to avoid car trade-in scams where the dealer tells you that you are ineligible for lower interest rates due to questionable credit scores. This scam is in fact quite familiar, but it is easily discouraged once you produce a real credit report. Remember, no car salesman should ever know more about your credit score and financial history than you do.
Keep yourself away from the dealership as you think that you might be the victim of a scam. Don’t try to beat the dealership at the game, since the salespeople have more experience at this than you. Just find a trustworthy dealer who will appreciate your business.