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Car & Auto Scams
Unscrupulous car dealers can't wait to pick your pocket
While many auto dealers are completely honest there are a significant number of scams you should be on the lookout for even if you believe the dealer has
a spotless reputation. A new car is one of the biggest purchases you can make and unscrupulous dealers have been refining their tactics for many years in
the hope that they can make you pay more than a fair price. The following are the top auto scams and our defensive tips to help avoid them so you don't
end up paying more than you have to for your new car.
A List of Top Auto Scams
Risky Credit Rating: The dealership implies your credit is riskier than it really is but will then offer you a sweet deal by stating they will take a chance on you. Result: a much higher interest rate and guess who gets the extra income.
Defense: Shop around and compare the dealer finance terms with other sources or check your own credit with the three major credit tracking firms.
Spot Delivery or YOYO Selling: This is one scam these dirty dealers try the most often. The dealership appears to agree to your terms, sends you home in the vehicle, and then calls you to say the terms haven't really been approved. When you return to the dealership they re-write the whole deal and you end paying a lot more than originally planned and can go hand-in-hand with the Risky Credit Rating ploy above.
Defense: Never take delivery of a vehicle unless all terms have been completely approved by the financing source and all paperwork is completed.
Reduction of your trade-in value: The dealership will determine that your vehicle is worth a specific amount to them. Then they will explain what extra costs they will have to spend to make your trade-in ready for resale. They offer you much less than what it is really worth. If you agree to the offered price you just gave the dealership hundreds of dollars in extra profit.
Defense: know your old vehicle's trade-in value before you go shopping for a new car.
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