How to Avoid Car Dealer Scams
Article approved by East Providence Injury Attorney David Slepkow 401-437-1100
Auto fraud can arise whenever an auto dealer perverts important facts deceiving consumer. There are a large number of car dealer scams which waylay inexperienced customer. Common cases of dealer fraud include the following tricks.
One of the car dealer scams used quite often is called the “credit score lie”. This is when the dealer tells you that your credit score is lower than what it actually is in order to get the customer into a car that is a little more expensive. This scam results in a higher profit for them. To avoid this, print out a copy of your credit report before you walk into the dealership, as this will keep you prepared to avoid this trickery.
Another of the popular car dealer scams is called the “trade payoff scam”. These car dealer scams are often reported when a car dealership is having a big sale at the time. This is when the car dealership tells the customers that they will pay off his trade no matter how much he owes. You don’t think that’s actually true, right? Well, it is not true. Here is the truth, the dealer will pay off the balance that is due on the trade, but he will do so by rolling the balance off into your loan. So not only you are getting a loan for your car, but you are also taking on the outstanding balance of the car you were trading in.
Very often dealers sell prior wrecked used cars «as is». Many of these automobiles have been in very serious car accidents in Rhode Island and other States. Let`s unveil how this scam works. At the dealerships you can find cars with the stickers «As Is, No Warranty» on them. If customer buys such kind of vehicle he assumes all the risks, thus he can`t return the car back to the dealer as he was aware that the problems might happen. The scam is that the dealer conceals information about prior damage or wreck. In some of these Auto Accident “as is” scams a person was injured or killed as a result of the Motor Vehicle Crash / accident.
When financing at the dealer the customer will probably face certain car dealer scams. The forced warranty scam is among them. When the customer is ready to sign paperwork the salesperson tells him that he must buy an extended warranty as it`s a bank requirement to get qualified for loan. The customer must be aware that the salesperson is simply lying to him in order to make extra profit. Claim your right not to buy any add-on products you don`t want.
Knowing these types of scams before you head into the dealership can be very useful. If you are thinking of purchasing a car, be sure to do as much research as possible beforehand.
Atrilce authored by Anet Hakobjanyan and reprinted with express permission
Tags: car dealer scams
