Dealer Fraud

This scam happens when the car dealer offers to pay off your current car loan no matter how much money you still owe. This sounds like by purchasing a new car you will automatically owe no more money for your old car. However this is far from reality.

In reality the car dealer does help you get out of your current contract. However, what he doesn’t tell you is you how high your fees you will be responsible to pay when you break your lease agreement with the old dealership. And these fees are to be paid before you are able to finance your new car.

The best way to avoid this scam is to pay your current lease until the end.

Nowadays the auto industry and car dealers are common with scams and car fraud. If you are a potential buyer you should be armed with the knowledge about these scams, how these scams work and most important how to avoid them. Of course, there are many reputable dealers that don’t use any fraudulent means. However there are also many dealer fraud cases. This is the reason why you better be aware of most common dealer scams and ways to deal with auto fraud before you buy a car.

One of the most common auto dealer frauds is the advertising fee scam. This happens when the dealer adds in an advertising “fee” which simply becomes profit for them. The best way to avoid this scam is to simply ask the advertising “fee” to be taken off the contract.

Most victims of dealer fraud are people with bad credit. This happens because people with bad credit believe they cannot get financing. You can easily get scammed by financing your vehicle at the dealership. Avoid this scam by financing vehicle through your bank.
If you are the victim of auto fraud, you should contact a dealer fraud attorney as soon as possible.