Nov 25 2009
Co-signer and Trade-in Scams
Trade-in Scam
Many customers who trade in their old cars become victims of car dealers who are not truthful about the value of the trade-in. Customers who are unaware of what they can get for their car if they were to sell it today are likely to accept statements like these and may walk away with very little money received for their trade-in.
What you should do:
• If you are not sure of your car’s condition and/or its market value, you may want to take it to a few dealerships. Tell them that you are thinking of trading in your vehicle and see what they offer you for it. This amount may be a more truthful estimate of your car’s market value.
• If you want to trade in your old car, make sure you know its current market value. You can go to the bookstore or library to find a book that lists values of most cars.
Co-signer Scam
When customers don’t qualify on their own for financing, car dealers often suggest that they get a friend to co-sign. Often, however, a salesperson tells the co-signer that he/she is only signing as a reference to help the primary buyer. This is not true. If you are asked to co-sign for someone, you should know that the co-signer is equally responsible for paying the debt and can be sued if the primary buyer doesn’t make payments.
What you should do:
• In most cases, it is not a good idea to be a co-signer for any type of loan.
• Only co-sign if you are ready to make the payments for the car.
