Dealer Fraud

The purchase of a new car can be a very tiring experience, especially when you are shopping at a car dealer who wants to trick you to buy a car that is not in your price range, or wants to sell you accessories that you don’t necessarily need. Another common practice for a car dealer can be convincing you to lease even though it really is not the best choice for you. In fact, there is a huge list of car dealer scams and tricks. However, it is still possible to purchase a vehicle and stay clear of all these car fraud. Here are a few tips to use when you shop for a new car.

Remember that there are many dishonest car dealers in the industry who will do anything to increase the purchase price of the car you intend to buy, thus making more profit. So, the best way to avoid dealer fraud is to be prepared with information about buying a new car and this will help you avoid Car Buying Scams.

It is very important to choose the best time for shopping for a new car. First of all try to shop during the week, rather than on the weekend. It will allow the dealer to spend more time on negotiating, because there will probably be a few customers at the dealership lined up waiting to buy a car.

Another good time can be the end of each month and the end of the year. During this time most of car dealers are trying to meet sales quotas and move inventory, so they will be willing to negotiating a good purchase price.

Always keep in mind that the dealer may tell you that he can’t negotiate on the prices. This is probably not true and is another car scam used by the car dealer. If you see that the car dealer is not willing to negotiate, just walk away and try to shop somewhere else.

Payment packing is one of the most common of the car buying scams. It is the act of presenting much more inflated monthly car loan payments to customers during negotiations.

This act actually becomes illegal once:

• A credit report has been obtained
• The sale price has been disclosed
• The term of the loan has been disclosed
• The finance rate has been disclosed.

How to avoid payment packing?

All the tricky games may easily be avoided by asking them to:

• Disclose the sale price
• Disclose the total amount financed
• Disclose the term
• Disclose the estimated finance rate

By having car dealers disclose all of this upfront, they have to give you an accurate payment or they risk a visit from the Department of Motor Vehicles or the Attorney Generals Office.

An even easier way to avoid becoming a payment packing scam victim is to arrange your own auto loan. By arranging your own financing you’ll not have to negotiate payments at all, because you’ll essentially be paying cash.

Used car buying scams do happen! In fact they are very common. Used car dealers are master negotiators and are good trained on different sales tricks, tactics and strategies.

If you intend to buy a used car you should go to the dealership being well prepared, so that the car dealer is not able to talk you into a car deal you are not happy with. Here are some of the most common used car buying scams you should be aware of.

1. The deal won’t last - This is a very commonly dealer tactic. When the car dealer feels that you are about to leave the dealership he will most likely tell you that the deal will not be available tomorrow. However, the truth is the car dealer will be happy to sell you a car tomorrow as well.

2. Extras – Dealers make most of their profit on extras. A salesperson may offer you a great deal on the vehicle and later sell a number of over-priced extras. Avoid this car scam by refusing all extras.

3. Rushing the customer to the sale - Most salesman want you to rush to purchase so they can move on to the next customer. Do not sign any documents if you are not sure about the deal.

4. Behind the scenes tactic - During the negotiation process you will probably meet with the manager and the salesman will excuse himself to talk with a manager behind the scenes. This is not always a bad thing but you should still be careful.

5. Bring a car expert with you – It is always useful to bring a knowledgeable friend or a spouse with you to the dealership, who could help you during the negotiation process.

When you go to the dealership to buy a new car you should remember that everything is negotiable. Most car buyers become a victim of dealer fraud and different dealer tricks because they do not know how to negotiate. A car is a major purchase and especially during the crisis, each consumer needs to get the most value out of their money.

Remember that you will be dealing with salespeople who have most likely been trained to negotiate the best deal for the car dealer and not for you. If you do not know how to negotiate or are not comfortable with negotiating, then the chances increase for you to being scammed by a car dealer.

The main problem is that most car buyers most are not prepared when they go to a dealerships. Some of them don’t know what they want, how much they want to spend, what a good interest rate on a loan is, or what add-ons they may want. The best way to avoid dealer fraud is prepare and know all this information before going to look for a car. If you are not well informed, then a car dealer can easily use any one of Car Buying Scams on you.

Another good thing to do is being confident enough to stand firm with what you want. Never let a car dealer to convince you to spend more money by trying to sell you an upgraded vehicle. So remember, that the more knowledge of buying a new car you have, the easier it will be for you to negotiate the best deal you can on a new car.

Every car buyer can become a victim of dealer fraud, especially if you go to a dealership without being aware of common dealer tricks and pressure techniques. Thus you can end up paying hundreds or even thousands more on your car deal.

Following are the most common car buying scams that come directly from a car dealer.

1. Remember that all car dealers are master negotiators and are trained on sales tricks and strategies. Often the sales staff of dealerships is offered formal or informal courses in persuasion. So it is very easy for the salesperson to talk you into a purchase.

2. “The deal won’t be here tomorrow!” This is one of the most common persuasion tactic used by car dealer. In fact, the salesman is afraid to let you leave the dealership, as he knows that if you have time to think the deal over you are not likely to come back. The truth is you will still be able to buy the car tomorrow, so take some time to make a decision.

3. The Back End scam happens when the dealer loads up profits. A sales agent may offer you a good deal on a car and then sell you a lot of over-priced extras. Avoid this scam by refusing all extras on a used car.

4. Car dealer will probably try to pressuring you to “close the deal now”. Salesman knows that the quicker you buy the sooner they can move on to the next customer. Don’t rush into the deal. If you feel pressured into deciding, simply walk away.

5. If you are uncomfortable or not very knowledgeable about cars it is a good idea to bring a friend or a spouse with you. Someone who knows more about car buying can save you hundreds or even thousands on your purchase.

6. Remember that the first offer of the Salesman will be very high. This is why you should start your negotiations low, so you can meet in the middle at an acceptable price.

You can avoid car buying scams if you understand the main sales tactics and tricks used by dealers.

There are many ways of avoiding used car fraud, but which one is the best? Get the right information about the car you intend to purchase. Make a list of questions to ask your car dealer. Remember that all questions are reasonable and no question is silly.

If you’re purchasing a car from a reputable used car dealer he will answer all your questions. Look for a dealer who wants you to feel comfortable with the sales experience and your used car, invites your questions, gives knowledgeable responses, and makes the sales transactions transparent.

Questions That Will Help You Avoid Car Buying Scams
There are countless valuable questions that you can ask. Here are a few samples:
• Ask the dealer where was the vehicle purchased from?
• Has the vehicle sustained any damage?
• Ask if the dealership has inspected the vehicle and what did you find.
• Has the vehicle been serviced? What did you do?
• Find out if you can find the paperwork required for registration online. If documents of sale are not ready, don’t leave with the car.
• Has the car ever been used as a rental car?

Know Something About the Used Car Dealer.
• Avoid used car dealers that look like fly-by-night operations. Be sure the car you are purchasing is genuinely available from the seller for legitimate sale.
• Check with the Better Business Bureau or your local Chamber of Commerce to be sure the dealer is legitimate.

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

www.DealerFraud.org]

Buying a used car online has become very popular and this type of purchase can be very convenient especially in terms of selection. However, there are car buying scams that drawback of online used car purchases. Here are some tips to help you avoid car buying scams when you purchase a vehicle online.

Choose Your Own Escrow Service
One of the most common scams happen when the dealer suggests or even demands to use specific escrow service. The escrow service is supposed to be your guarantee when you purchase via Internet. It guarantees that the seller doesn’t take your money and run.

Avoid Any Deal That “Seems too Good to be True”
Common sense is a good way to avoid used car fraud. If you feel that the deal is too good to be true it probably is. Be ready to walk away from the deal otherwise you are risking to get nothing at all.

Research the Escrow Service First
Here are some steps you can use to protect yourself from used car fraud when you are buying online.

• Check with the Secretary of State as well as with the Better Business Bureau for all parties you are going to do business with and make sure the agency is registered and in good standing.
• Check if the website is professional and responsive. Try to send an email with a question or comment regarding the site. Make sure they receive and answer.

Almost always online used car buying experiences are positive and not everyone becomes a victim of a car buying scam. If you want to avoid becoming a victim of used car fraud you should be informed and very careful.

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

www.DealerFraud.org]

Nowadays one of the biggest consumer rip-offs are new and used car sales. Every day car dealership customers are being taken by unscrupulous sales people by questionable advertising methods that help draw people in or concealing the facts and figures with confusing jargon. However many of the dealer tactics are perfectly legal.

Customers should be particularly aware of car dealers that promise to pay off their old vehicle loan no matter the amount owed. They will pay off your current vehicle loan and will tack the existing balance onto your new loan. In fact, you will be paying an amount that far exceeds the value of your new vehicle by paying for your new vehicle and your old vehicle.

When is your financing “upside down”? This is the situation when you end up owing the bank or finance company more than your vehicle is worth. Upside down credit loans can be covered by gap insurance, however it should be considered that these policies have numerous stipulations and are hard to find. If your vehicle is stolen or totaled and you still owe a considerable amount of money after the insurance company reimburses the damage. You can avoid upside down credit by not getting tricked by your friendly salespeople when he promises you to pay off your current loan. Their primary concern is their commission, and they don’t care if you end up paying more than your new vehicle is worth.

Car buyer should keep in mind that most car dealer’s primary concern is their commission and they don’t always have your best interest in mind. It would be better if you find a loan with the best possible interest rate on your own, without the help of your car dealer.

Car dealers will most likely come up with almost any monthly payment customer suggests. However this is not done by giving you a break on the price but by extending the time it takes to pay off the vehicle. The total cost of the vehicle is what you need to consider before you sing the paperwork.

If you are buying a used car examine the vehicle you are considering very carefully. Salesmen working at used car dealerships are very good at covering up scratches and blemishes on previously owned vehicles. Have an independently licensed car mechanic examine the vehicle you are considering for purchase. Remember that used vehicles often come without extensive warranties. If you notice any problem have the car dealer repair it before signing the final papers.

One of the common practices for car dealers is to remove original tires from low-mileage vehicles and replace them with worn tires. You will soon need to replace these tires, so pay careful attention to the condition of the tires of the vehicle you are buying and if the condition of tires is not good enough ask the dealer to replace them. Most probably the dealer will change the tires to make the deal.

Before you sign the final papers make sure you clearly understand everything. Keep in mind that car dealers use different tricks and dealer tactics to make profit. Be ready to walk away from the deal if you are not completely satisfied with the deal, final price or the vehicle you’re buying.

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

www.DealerFraud.org]