Dealer Fraud

Some unscrupulous dealers sell poorly rebuilt salvaged cars, which are dangerously unsafe and overpriced. Typically, these cars are involved in major accidents or floods. They look fine because of cosmetic repairs; however, they may have defective brakes, steering problems, faulty and inadequate welds, and poorly aligned structures. Make the following inspections to see if a vehicle has been wrecked:

• Check to see that the paint on the outside of the door matches the paint inside the doorframe.

Respraying a vehicle is just one method of camouflaging body damages because the vehicle will appear brand new or in a good condition. Usually, only the outside of the car will be sprayed so it will be easy to tell the color differences.

• Make sure that the parts of the car line up with each other.

Not all mechanics are neat workers and sometimes even the best mechanics fail to put the body parts of a badly damaged vehicle back in line.

• Ensure that the gaps between the doors and around the hood and trunk are straight and even.

This is important, as if these parts are not straight or if they are uneven the car may leak in water when it rains.

• Have a mechanic check underneath for any evidence of welding of the frame or underbody.

Maybe you won’t know what to look for, but if you take a reputable mechanic who has years of experience in his field, he’ll be able to point out shabby workmanship.

• Check the title to see where the car was registered.

Severely damaged cars often move from one parish to another. Persons with damaged cars feel more secure to sell their vehicle in a parish where no one knows neither them nor the vehicle.

• Look for evidence of flood damage.

Check the mat under the trunk for mud or dirt. Look for watermarks on the inside of the vehicle’s doors and for moisture inside the trunk and under the seats.

• Check the validity of the year of the vehicle quoted by the dealer or seller.

Some sellers will misrepresent the year the car was made in order to get a higher price.

Follow these tips to be protected from various car dealer scams and particularly to avoid becoming an owner of a salvaged vehicle.

A lot of people fall victim to car dealer fraud every day. If you are thinking of getting a new vehicle, it would be best to know these dealer tricks and steer clear of them. Here are some things you should be aware of:

Loan Assistance: If your dealer makes an offer to assist you if you are unable to pay off your loan, think twice before agreeing. You might end up with a bad credit rating and will start owing the dealer rather than your bank for a higher price.

Easier Payments: There is a real difference in paying the car for a lesser amount and paying less for a car loan. Some dealers try to get to pay higher payments from you by saying they are trying to make the car more affordable. If you add up all the payments, then you will realize that in fact you have paid for a higher-priced car.

Added Security: It is a common practice for some car dealers to suggest an etching on the car’s windshield to prevent theft. Your property will be protected and it’s not a bad thing. However, don’t pay for a premium when a VIN etching kit can be purchased online for only $30 or less.

Extended Warranty: There is no other person who may decide whether or not a warranty will be added an extra year except you. No dealer maneuvering should be making that decision.

Dealer Preps: Never pay more than what is listed on the car site or the sticker price. Some dealers often add dealer prep costs when the price is already in plain sight.

In the end, study all your options to be an informed customer before shaking the hand of your car salesman. However, if you have already been defrauded, try to contact an experienced dealer fraud attorney.

There are some common traps that you may fall into when buying a new or used car. To avoid these car dealer scams, please read our blog to learn some useful car buying tips.

How Much Do You Want Your Monthly Payments to Be?

In many cases the persuasive salesman will try to sell you a car that costs more than you want to pay but he’ll wrap it up in a deal with monthly payments that you think you can afford. Before you tell him what you’re willing to pay each month, you should find out what the car is going to cost.

We’ve Got Some Extras For You

Some extras may be worth tacking on to your auto loan, like automatic transmission instead of manual, or safety features that will help lower your insurance premium. But before you just sign up for an extended car warranty or other extras that you might not need or you could get for less somewhere else.

Who Has Time for Comparison Shopping?

One of the most common mistakes you can make is not doing your comparison shopping before you decide. It’s a well-known fact that car prices vary greatly, even on the exact same car, meaning you may find a better rate just down the road. Do your research, comparison shop and check the Web for going rates in your area to be sure you have a good idea of what you should be paying.

But It Looks So Great!

Too many people rely on curb appeal more than the important factors about the car. Remember that safety, longevity, quality and resale price are all very important.

However if you have already become a dealer fraud victim, your wisest option is contacting a dealer fraud attorney for valuable advice and help.

Imagine for a moment that you are a car dealer who is trying to sell his/her old coupe for a bigger sedan.  You gather the keys, rummage through your junk pile for the owner’s manual and old service records.  You clean the engines, rub out the stains on the cushions, vacuum the interiors, and put your coupe through a car wash.

Imagine and remember this since this is exactly how a private seller with an ounce of business sense would prepare his or her vehicle before a sale.  So, how to detect hidden defects on the vehicle and be protected from becoming a victim of dealer fraud?

Body

• Check if the paint on the car’s outside matches the paint inside the door frame. Other possible signs of a new paint job or masking body dents and scratches are gritty surfaces and paint overspray on chrome.
• Check if the panels line up evenly.  Also check if there are any scuffs, dents, scratches or irregular protrusions in the wings and bumper - these could be warning signs of past accidents.

Doors and Trunk Lid

• Make sure that doors and lid open without creaks and close smoothly without being slammed.  A door or lid that does not fit evenly could be an indication that the vehicle was involved in a collision or was regularly driven in rough roads.
• Check that the locks work properly.
• Look for stains and rips on the interior panel of the door and scrapes on the bottom edges.

These are only some of the valuable tips we are going to share with you that will help you avoid car dealer scams.

A salvage title is something that is issued by a state when a vehicle is severely damaged and the costs of repair can exceed the vehicle’s value.

The seller should disclose if a vehicle has a salvage title. Unfortunately, salvage titles are not always revealed. Sellers often alter title documents and make cheap cosmetic repairs to salvaged vehicles to make the vehicles look sound on paper and in person.

A common scheme associated with salvaged vehicles is title washing. In title washing, a dealer moves a vehicle to a state with looser title laws and then registers the vehicle in that state. Depending on that state’s laws, the state may not indicate that the vehicle ever had a salvage title. In a title washing scam, the seller may register the vehicle in multiple states until the salvage brand is removed from the title.

Car clipping is another problem that is associated with salvaged vehicles. In car clipping, two wrecked vehicles are factually sawed apart and then the ends of the separate vehicles are welded together.

To determine if a vehicle has a salvage title, ask the car seller to show you the title document. Look for wording on the title indicating a salvage title. The wording may vary from state to state. If the words totaled, junked, salvaged, reconditioned, rebuilt, or warranty returned appear on the title, then it is a salvage vehicle.

If the title does not indicate salvage, carefully examine the title document to see if it has been physically altered. If the title looks like it has been altered in any way, beware. We also recommend that you order a Vehicle History Report, take a test drive and have the car inspected by a qualified mechanic.

In one of our previous blogs (Beware of Water Damaged Used Cars (1)) we have already given you some tips that indicate water damaged cars. In this blog we will give you 6 more valuable tips to avoid becoming a dealer fraud victim.

• Look for dark lines on fabrics. Water lines or marks are created at the “high water points” on fabrics. A continuous line is visible along the length of any fabric (seats, rugs, headliner, etc.) that has been exposed to water and air at the same time.

• Look for rust. Rust will form on any steel surface that is unpainted and exposed to water. Since the inside of the trunk should never be exposed to water - rust found there is a sign that is was. Likewise, any rust that is found anywhere inside the cabin means water got in there, too.

• Look for new parts. Pay particular attention to the dashboard instrumentation. If the odometer indicates an incredibly low value for the year of the vehicle - it could indicate that the instrument cluster or entire dashboard was replaced due to water damage.

• Obtain a vehicle history report. The dealer or manufacturer may have some or all of this information available for free. Carfax is a service provider maintaining a database of many types of repairs and damages to vehicles, for a modest fee. Simply obtain the VIN (it should be well visible through the windshield on the driver’s side dashboard) for look up in the database.

• Shop at a reputable dealer. Reputable dealers avoid the headaches of selling vehicles that have questionable history. Dealers rely on their good reputation to stay in business. “Disappointed customer” stories spread much faster than “happy customer” stories do, so most dealers do what they can to minimize this risk.

• Note musty odors. Musty smells are indications of moisture. It is not unusual for older cars to have some mustiness - but beware. Water may have gotten into a vehicle if a window was left down or was broken. Rotted sheet metal around the rear wheels or rear window can cause a musty smelling trunk.

There is nothing worse than falling for a car sales scam and letting the dealer to rob your hard earned money.  You can avoid car sales scams if you enter the car dealership prepared. In this blog we will share 5 quick tips with you that you must know to avoid getting taken by a fraudulent car salesman.

• Know your limit. Before entering the dealership know exactly how much you can afford to pay.  The car salesman’s job is to sell you a car and make a profit and they will always try to persuade you to spend more.  If you know your spending limit you will not leave the dealership with buyers regret for laying out more money than you presupposed to.

• Calculate the total cost. Many dealerships will plaster a sign on the vehicle windshield advertising a low monthly payment for it.  This can make you feel like you are getting a good deal but when you add up the total cost you find out you are actually overpaying.  Always calculate the total cost before signing.

• Decline extras. This is a classic bait and switch.  The salesman will give you a great price break on the car up-front only to load up his profits by adding a lot of unnecessary extras such as extended warranties, special paint sealants gap and insurance plans.  If you feel you don’t need any of these extras, simply refuse to pay for them.

• “This deal is only good for today.” This is a common car dealer trick which is used to get you to buy the vehicle immediately.  The dealers’ fear is that if you go home and sleep on your decision you will not come back.

• You can negotiate any price. It is good for you to know that any price may be negotiated at a car dealership.  Don’t get fooled into thinking that the sale terms are final.  Plan your car purchase on weekdays when the agents are not so busy to have a better chance of negotiating the price.

As the price of new vehicles increases, there is more and more interest in used cars and subsequently odometer tampering has become a very lucrative fraud. Here are the varieties of odometer fraud.

• False or Altered Titles – A clear title is much more valuable than a wrecked or damaged car title. This car scam occurs when a dealer purchases a high mileage vehicle and subsequently resells it with falsified, reduced odometer reading. This is accomplished simply by tampering the high-mileage figure noted or by obtaining a new automobile title with a false mileage figure before reselling the vehicle. A professional calligrapher can perform excellent quality title alterations, which are often invisible to the naked eye.

• Reassigned Titles – In most countries licensed automobile dealers are allowed to transfer vehicle titles without re-registering them. How? A car dealer’s reassignment of the title can be attached to the original title. Numerous title reassignments can accompany an original title, as well as the washed title. A car dealer may also discard the prior reassignments of title, making it difficult to trace ownership of the vehicle.

• Title Laundering – This car scam occurs when a wrecked car’s title is replaced by papers bought in another country. A car dealer discards the previous title, then registers his/her vehicle in another state with the altered odometer and assigns the title to a company, then reassigns it back to himself/herself, now having his/her car registered with the new mileage.

• Odometer Clockers – A dealer does minor labor to the car, replacing or changing the noticeable dings and dongs. Mats, gas, floor, brake pedals, tires can be replaced. A clocker turns back the odometer with common tools such as picks, wires, screwdrivers, electronic and digital tools. Cars odometers can be rolled back in masses, because a good clocker can do this job in a matter of minutes.

Car dealer scams do happen because car sales involves a lot of money. This blog points out 5 things you should watch for in order not to fall victim to used car dealer scams.

• Everything from the greeting you receive to the places you are asked to sit is calculated when you enter the dealership.  The salesman in this stage is trying to find out how much homework you have done before entering the dealership. If you go in unprepared, it means you do not know what type of vehicle you are interested in. The salesman has an excellent  opportunity  to “talk” you into a deal that favors the dealership.

• The dealer will always start negotiations high.  Be aware of this and know the average selling price of the vehicle you are going to buy before entering the dealership.

• The car dealer wants you to make a decision based on your emotions.  A “good” salesman will try to impact on your emotions by asking you questions that make you consider how you will feel in the vehicle.  Do not allow yourself to get emotionally attached to one car or you will lose your negotiation power.

• The car dealer wants you to rush.  When you are “forced” to rush to a buying decision you do not have much time to weigh the impact this purchase will have on your wallet.  If you feel pressured, remember that you are the one with the wallet and therefore the only one with the buying power.

• The salesman might excuse himself to talk with a manager. This is not necessarily an indicator of  a car dealer scam but you will want to take this time to ask yourself if this car you are considering fits your budget.  The car is never yours until you sign and up until that point you have every right to refuse the deal.

The fake dealer scam is one of the numerous scams you may become victim of when purchasing a vehicle. Here is how this scam is designed. You are conducting an online search for a used car and come across a car for sale at a very good price, you contact the seller and they tell you the car is a fair distance away but they will pay for the cost to ship it to you, they ask you to pay via a wire service they use many times and you never see the money dealer or the cars for sale again.

The scam is clever here as the money wire website they have you use looks just like one you would expect to see, sometimes they look better than the real money wire websites they use the popular brand names on their site to make it look official and make a minor change to the web address which normally goes unnoticed. The money is wired and immediately picked up never to be seen again. The car photos and details are normally copied from local dealers’ websites and the car scam artist poses as one of the dealers.

To avoid this scam first of all you should be well informed and attentive. The first warning signal of this scam is the dealers’ offer to ship the car for free, not only they sell the car cheaper than its normal price but also they are willing to foot the bill for shipping. Never trust someone else’s recommendation and never use a money wire service for online payments as they are just not secure enough.