Dealer Fraud

The dealership can be an overwhelming place for most of the car buyers. Some of the customers rely on the car dealer to get the best deal for their car. However, relying on the dealer to help you with the terms of your contract is a bad approach to purchasing a vehicle; because you will probably pay much more than necessary simply because you don’t understand what is being said.

Here are a few of the most common dealer tricks used to make more profits from unsuspecting consumers:

Leasing over Purchasing a Vehicle
Car dealers will tell you that leasing is a better deal than purchasing, and will promise you a low monthly payments. Sounds good at first but as always there are loop holes. Most importently the car ealer don’t explain you that there are the long contracts and stiff penalties for ducking out early on your lease! Among other things like limited mileage allowances, and hefty repair costs with additional charges for every mile you go over your contracted limit. Now you may say that a mere .10 to .20 cents a mile isn’t much but they will quickly add up!

Only a 2-3% APR on the Lease
The dealer will only give you half the calculation in the interest rate. When in actuality you must multiply the 2-3% by 24 to get the actual interest rate. The dealer will quote you the lease money factor, instead of the complete rate to get you to feel you are getting a better deal.

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