Dealer Fraud

Auto dealer scams are a big concern for many potential car buyers. It is probably wise to be cautious, but remember there are honest auto dealers out there. Wondering how you can tell the difference? Here are some scams you might encounter and tips you can use to avoid used car fraud..
Buyers are led to believe they can only get a car at a high interest rate.
How to avoid this scam:  Know your credit score and what kind of rate you can get before you begin shopping. When it comes to avoiding auto dealer scams, knowledge is power.

Buyers Often Ask the Wrong Questions.
When approaching the auto dealer, buyers usually have some idea of how much they can afford for their monthly payment. Unfortunately, their focus is limited to this number and dealers know it. Unscrupulous dealers use this to scam buyers. Avoid the numbers scam by:

• Asking about the invoice price for the car.
• Asking about your total cost of the car and the loan.
• Understanding the loan terms and fees.

Buyers Don’t Research Alternative Financing Options.
One of the easiest ways to avoid used car fraud and scams? Get your financing before you go to the dealer. Even if you get a great deal on the car, many auto dealer scams come into play when it’s time to talk financing. Head to your bank or credit union before you shop for your car. That doesn’t mean you shouldn’t find out what financing options are available from the dealer, but you are in the best position to compare and negotiate when you shop around.

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[ To Learn more our services and areas of practice, please visit our website at

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Buying a used car can offer significant savings over a new car unless you are the victim of car dealer fraud. Here is what you should know about avoiding the car scams that can leave you on foot.

Use An Inspection Checklist
• Inspection checklist are widely available (used car guides or Internet sites are good sources). The checklist may help you narrow your choices to those that are worth a mechanic’s inspection.

Get a Mechanic’s Inspection
• Costs vary from state to state (the average is around $100).
• Inspectors are listed under headings such as “pre-purchase inspection.”
• Ask the mechanic for a full written report of all findings. You should discuss these findings with the used car dealer.
• If the dealer does not allow you to remove the vehicle from the lot for inspection, you can arrange to have the dealer deliver the vehicle for inspection. You will be responsible for associated costs.

Know Something About the Car Other Than the Make and Model.
You can avoid used car fraud by getting additional information about the car from:
• The previous owner
• Reviewing service records
• Purchasing a vehicle history report (carfax.com is a popular resource).

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[ To Learn more our services and areas of practice, please visit our website at

www.DealerFraud.org]

Purchasing a used car online can be a terrific choice in terms of selection and convenience. However, car buying scams are one drawback of online used car purchases. If you are considering buying a used car via the Internet, here are some tips to help you avoid car buying scams.

Choose Your Own Escrow Service
When you purchase online, an escrow service is supposed to be your guarantee that the seller doesn’t take your money and run. If the dealer suggests or demands that you use a specific escrow service, do not move forward with the deal.

Avoid Any Deal That “Seems to Good to be True”
Common sense? That old adage is a good way to avoid used car fraud. Sure, we all want to get something for little or nothing but greed and/or naiveté is a sure way to get nothing at all.

Research the Escrow Service First
There are simple steps you can take to protect yourself from used car fraud when you are buying online.

• Check with the Better Business Bureau for all parties you intend to conduct business with. You may also check with the Secretary of State to be sure the agency is registered and in good standing.
• Review associated websites carefully. Look for sites that are professional and responsive. For example, are there any misspelled words? When you send an email with a question or comment, do you receive a response?
Car buying scams don’t happen to everyone. Most often, used car buying experiences are positive. You have a better chance of avoiding used car fraud with research and patience. Buy with your eyes wide open.

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[ To Learn more our services and areas of practice, please visit our website at

www.DealerFraud.org]