Dealer Fraud

Car dealer tricks are various and being aware of them is more than important. If you are not careful enough you can get ripped off in car buying process without even knowing it. Car dealers sell cars every day; you buy one surely not even every month. So car dealers have predominance over you in this particular case. In this article we will try to outline how to watch for car dealer tricks.

Step 1

The first step is to tell the sales person that you are not going to discuss rebates until you have agreed on the price of the car. Rebates are intended to attract car buyers into the showroom, and very often they do. However, rebates are sent directly from the manufacturer, they are not connected with the price you negotiate for your new car. Once you have negotiated the price make sure the rebate is then deducted from the price on the final bill of sale.

Step 2

The second step is to avoid high monthly payments. The sales person will ask what you are willing to pay each month, whatever number you throw out will be the least you will ever pay.  Talk only about the final sales price of the car, then once that is decided you will work out what your payments each month will be.

Step 3

The third step is to avoid fees that are extra money makers for the dealer. Negotiate the final price of the car and then if the dealer tries to throw on extra fees after that is done do not pay them under any circumstances. Tell them that the price you negotiated is the price that you will pay, and tell them to build it into the price or you are walking out.

Step 4

The fourth step for avoiding car dealer fraud is to secure your own financing from someone else besides the dealer. This way you can have a secured rate and if the dealer can’t beat it, then forget their financing and do it on your own.

Vehicle safety recalls have been making headlines recently, especially after the Toyota recall on January 21. But no matter what you drive, you should know how recalls work, what they cover, and just as importantly, what they don’t.

Safety-related recalls are those recalls that are likely to affect the safe operation of a vehicle, a tire or a child restraint without any prior warning. This includes component failures that might cause fires or loss of control, or airbags that deploy when they shouldn’t.

Once a recall is issued, you should receive a notice in the mail. You can also call a car dealer or the manufacturer to find out if your vehicle is affected.

While it can be scary to hear about a recall, it’s likely that your car is fine, and it’s being done as a precaution. The manufacturer identifies a group of vehicles that might have a problem, or could develop that specific problem in the future, and inspects or repairs all potentially affected vehicles to be sure. Remember that not all recalls are for major problems: several have been issued for cars carrying warning labels written only in English, when bilingual labels are required by law.

If you do get a recall notice, make an appointment with a car dealer for the vehicle brand. In many cases, the vehicle is inspected first, and is only repaired if it’s found to contain the parts that could be at fault. If the recall specifies this, and your car doesn’t have the problem, don’t expect the parts to be replaced anyway. If replacement is required and a large number of vehicles are involved, you may have to wait for the new parts to be built and then distributed to car dealers.

It’s also common for only specific vehicles to be affected – they might have received a bad batch of parts, or were built before an assembly problem was detected and fixed at the factory. Because of this, it’s entirely possible that your neighbor could own exactly the same year and model as your vehicle, but he gets a recall notice, and you don’t.

After the Toyata recall on January 21 car dealers have been ordered to stop selling the vehicles and the manufacturing plants have stopped production. The models, which include the popular Camry and Corolla, make up 57 percent of the automaker’s sales.

For now, the manufacturer says not to do anything unless you’re experiencing problems. Toyota said that the acceleration incidences are rare, happening when the pedal becomes worn, for instance. If you are experiencing any sticking or anything else that worries you, the company says to call your local car dealer.

Here are other tips from Toyota if you happen to be driving and the accelerator sticks:

• If you need to stop immediately, you can control the vehicle by stepping on the brake pedal with both feet using firm and steady pressure. Do not pump the brake pedal since it will deplete the vacuum utilized for the power brake assist.

• Shift the transmission gear selector to the Neutral position ((N) position) and use the brakes to make a controlled stop at the side of the road and turn off the engine.

• If unable to put the vehicle in Neutral position, turn the engine off. This will not cause loss of braking or steering control, but the power assist to these systems will be lost. If the vehicle is equipped with an Engine Start/Stop button, steadily and firmly push the button for at least three seconds to turn off the engine. Do not tap the Engine Start/Stop button.

• Turn the ignition key to the ACC position to turn off the engine if the vehicle is equipped with a conventional key-ignition. Do not remove the key from the ignition as this will lock the steering wheel.

Many of the car dealer scams one encounters when buying a new car are nearly the same. Here are some great tips for avoiding car refinance scams.

•    Order your own credit score and take it with you to the dealership.

•    Never make a cash deposit for your financing loan because if the deal goes bad, you can’t get your deposit back.

•    Don’t apply for a car loan until you have been employed for at least 6 months if you are a recent college graduate.

•    Apply for your loan online to avoid getting ripped off.

•    Learn to fix your credit before applying for a loan. Get your credit score to at least 680 first.

•    Pay off your credit card debts before looking for a new car.

•    Wait 6 months before applying for a loan if you have recently moved. You addresses are always verified. If you move a lot, they might not trust that they can keep track of your whereabouts should you make late payments etc.

•    Don’t get a co-signer for your loan as often times you will find that the deal is solely in the other person’s name.

Purchasing a pre-owned vehicle may be a difficult task, especially if you do not know which used cars to avoid. There are certain steps that consumers should know to avoid becoming a car dealer fraud victim.

Step 1

Check Consumer Reports before purchasing any vehicle. Consumer Reports contains valuable information on the reliability of new and used cars. They contain evaluations from both the car experts and everyday drivers. Search by the vehicles’ year, make and model. Read each evaluation carefully and check the used car’s overall rating.

Step 2

Go to a private party or dealership and test drive the vehicle. If you are not sure what to look for, have someone come with you who has a good idea of the vehicles components. Check the basic functions of the car to make sure they are in working order. If you do not have anyone to take with you for a test drive, bring the vehicle to a reputable mechanic.

Step 3

Request a vehicle history report. This step is crucial to ensuring that you are not driving a lemon! A vehicle history report will provide you with details on any accident, fire and flood damage that the vehicle may have incurred in the past. It will also tell you whether or not the vehicle has a salvage title.

Step 4

Walk away from any private party or dealership that will not allow their vehicle be viewed by a mechanic or does not provide you with an accurate details of a vehicles history.

Read our blog if you want to be able to detect any hidden defects on the vehicle and be protected from becoming a victim of dealer fraud.

Windows

• See if there are any hairline cracks or tiny holes in the glass.
• Make sure that they move up and down smoothly and if they fit snugly when fully rolled up or down.

Tailpipe

• Check if the vehicle’s tailpipe is damaged from poor reversing.
• Examine the rear bumper for too much soot from the exhaust.  If the tailpipe has black gummy soot, this may be an indication that the engine has worn rings or bad valves, which could mean expensive repairs.

Tires and Shock Absorbers

• Check the tires (don’t forget the spare) if they are unevenly worn as this may indicate either bad alignment or worse - damaged suspension.
• Put your full weight on a corner of the car and release - if the car keeps rocking up and down, be wary about the condition of the shock absorbers.

Interiors

• Check if the car’s steering wheel points straight when the wheels are aligned ahead.
• Check the upholstery for cigarette burns, stains, rips or scuffs.  Low mileage readings but too much worn out driver’s seat and brake and accelerator pedals could be an indicator of odometer rollback.
• Musty smell, moisture inside the trunk, dirt under the mat and watermarks on the interior panels of doors are likely indicators of flood damage.

Lights and Mechanical Devices

• Make sure the lights, heater, air conditioner, windshield wipers, radio and other accessories work properly.

We hope this blog and one of our previous blogs Tips to Detect Hidden Defects in a Used Car (1) will help you to avoid car dealer scams.

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.

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.