Dealer Fraud

Below is a brief summary of negotiation strategies and tips for ensuring you get the best car for your money and avoid becoming a victim of dealer fraud.

Take Your Chances

Negotiating with a car dealer is far easier than most people believe. Contrary to popular opinion, if you disagree with the dealer on the price, you will not be thrown out of the dealership. The salesman is almost never authorized to agree on a final purchase price anyway, so you should not hesitate sending him to a manager to ask for a lower price.

Come Prepared

Conduct some research to find the fairest price for your target car. While you may not get that exact value, it will most likely be significantly less than the amount that the dealership will be advertising. You may also use ‘how to negotiate’ guides for dealing with sales representatives. This will help you reduce not only the car-buying stress, but also the overall price you have to pay for it.

Do Your Homework

The most important aspect of a car search is to make sure you do your homework. Compare the value of your target car offered by various dealerships and make sure that it doesn’t have any major mechanical problems that the dealer isn’t mentioning. If the car you wish to buy is properly researched and inspected, you will not only have significantly fewer problems with the car after the purchase, but a greater chance to avoid car dealer scams.

Car dealer scams vary and being aware of them becomes more and more important. Awareness may save you a lot of trouble and money. So make sure that you have done your homework accurately enough and are ready to enter the car dealership without the potential threat of becoming a car dealer fraud victim. Below are some useful questions to ask a used car dealer:

• If the car is certified, can you show me the mechanic’s pre-certification inspection?

Every certified car has to go through a car inspection before it can be certified. Ask to see that paperwork to find out what was fixed. It’s a good piece of paper that will support your future problems.

• Who was the vehicle purchased from?

If it was a trade-in to that dealership, ask the dealer to show you the maintenance records. Tell them they can black out the owner’s name and address. If it was bought at auction, make sure it is gone over with a fine-tooth comb by a mechanic who specializes in inspecting used cars.

• Who certified a used car that is called certified?

The only certification that really means anything is a manufacturer certified pre-owned car. All others are insurance backed programs.

• How long of a test drive may I take?

See if the dealer will allow you to take the car overnight for an extended test drive. Put it in writing that you won’t put more than 100 miles on the odometer, prove you have insurance, and you’ll bring it back with a full tank (if you leave with a full tank).

Ask these questions to the car dealer and hopefully you will not need a dealer fraud attorney’s help in the future.

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.

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.

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.

Car dealer tricks are various and may be used by the car dealer in various situations. The aim of car dealer scams is to get more money out of you and sell cars that wouldn’t be sold so easily in case no tricks were used.

High Balling

An excessive price will be offered for your trade in. Some customers are attracted by this thinking that they are getting one over on the dealer. Rest assured, however, that you’ll pay for it in the end, when the dealer charges too much for your new car.

Loss Leader  Advertising

A car dealer will identify one/two cars of a particular model. These will be the “worst” cars. The dealer will then launch a large advertising campaign based on these cars with the price e.g. $200 below cost.

When the customers rush in from all around the city, they are promptly “switch sold” to another car. All the salesperson has to do is to point out why the car is undesirable, and then get the customer to pay more for a better car.

The Lap Dog Trick

When a customer leaves a dealership and says to the car dealer they will look around for other prices, the dealer tells him/her to come back once the “best price” has been obtained. The dealer will then either match the price, or try to increase it slightly by taking advantage of the fact that the customer is sick and tired shopping and is itching to buy the car. This car dealer trick is very common and works well for most dealers. It relies mainly on getting the customer to feel obliged.

Bouncing the trade in

The dealer will contact you before the new car is delivered and say there’s an issue with the trade in. They will ask you to bring it back for an inspection and claim to have found it’s really only worth $500 less than what they have offered for it. If you fall for it, the salesperson earns another $500.

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.

Forearming yourself against dealer scams is the wisest tactic one may use before buying a new or used car. You need some knowledge for making a smart chose. However we all know no one needs a Doctorate for purchasing a car. But that is precisely what the dealerships know and take an educated move to trick you into keeping as much as your hard earned money as they can. So, it is not unreasonable to arm yourself with tricks and tips the dealers use in selling you a car! One of the most hidden secrets of car dealer scams is in the financing.

Here are some critical things to do before you set forth in a dealership.

• Do some research! Find out what you want, how long you want to finance, know what the new car price quotes are, invoice price, models, equipment etc.

• Negotiate Price, not payment. You should plan on negotiating, and not the payment.

• Don’t reveal you have a trade-in. This information shouldn’t be part of the price you are negotiating even though they say it will be. Negotiate the trade-in separately.

• Arrange your own financing. If the dealer does it, it will cost you much more.

• Consider buying through other resources. The internet, Craigslist, Ebay, and auto trade magazines. When you buy directly from the seller, you exclude all the middle men that dealerships have to pay.

• Remember when you buy, you bought it. There are no returns.

Arm yourself with knowledge and avoid dealer tricks.

Of course there are a lot of car dealers with high integrity who are interested in making you a good deal, but the fact is used car dealer scams do happen and must be aware of car dealers who will do anything to earn as much money as possible. Knowing the several tips introduced in this article will help you protect yourself from used car dealer scams.

1. “This offer is only good today.” This is one of the most commonly used dealer trick. The truth is the car dealer wants you to buy today because they are afraid if you go home and think about it you will start to see that the deal is not so great.

2. A good deal might turn out to be not as good by the end. This scam happens when the dealer makes you a great deal on the cost of the used car and later addes to the deal a bunch of over-priced extras. This way the salesman makes more profit than you think. Avoid this scam by refusing all extras offered by the dealer.

3. Remember that the salesman is interested to get you to purchase as soon as possible. If you feel uncertain about the vehicle then don’t buy.

4. Always negotiate! Keep in mind that the first offer of the dealer will be high. Start negotiating low. This way you can meet in the middle at an acceptable price.

Used car dealer scams happen every day, but that doesn’t mean that you have to be a victim. Be informed and you will be able to walk away with a great deal.