Scams to Avoid When Buying a New Car
Roberto beiro
Buying a new vehicle is already hard enough without a car salesman putting pressure on you while you are browsing. We all know that almost every car dealer can be negotiated down on the sale price of a car. The thing is that to watch out for the scams so that you can maximize your hard earned cash. In this article I am going to share a few sales tactics that you may want to be on the lookout for the next time you purchase a new car.
1. Some dealerships may try to scam you by charging you for having the VIN# etched on the windows, saying that it is a requirement by the loan compnay. It is not. Lenders will never ask you to add features you don't need. Their main concern is your ability to repay the loan.
2. "Subject to loan approval" is a common phrase on car loans. Some dodgy car dealers will try to scam you by mentioning this phrase, with a view to squeezing more money out of you. They can charge finance fees of $1000 up and and added $50 to you payments if you have a bad credit score. Those with good credit needn't worry so much. The best thing to do to avoid this scam is to get a loan from a bank instead.
3. One scam that is common regardless of how good you credit score is, is funnily enough, the credit score scam. Dealer's will attempt to charge you a higher interest rate by saying your score is lower than it actually is. You can avoid this one by simply bringing your credit report along with you.
4. The warranty scam is one that involves the dealer selling you a $2000, 3 year warranty, saying that you need oit to qualify for financing. NOT TRUE. A car warranty is optional and hs no influence of getting a loan.
5. This is the Dealer prep scam. A dealer will slap an additional $500 charge on the vehicle for work that is not required, because cars are ready to to be driven of the lot when they are received. Try to find a dealership that doesn't charge this ridiculous fee.
6. Another fake fee is the 'dealer mark-up'. This has no purpose other than to increase profits. You can usually see this fee on an orange sticker attached to the manufacturer's suggested retail price.
These are just 6 of the many scams that can surface from time to time when you are attempting to purchase a new car. Although these scams do go on, there are many trustworthy car dealerships with integrity that can and will sale you a car for the right amount of money and without trying to rip you off. The trick is to find that dealership. Good luck!
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