by Roberto Beiro
As it is already challenging purchasing a new car, you really don't want the added pressure that some car dealers can put on you. It is normal to haggle with a dealer to lower their price, but don't get caught out by scams designed to con you out of your hard earned dollars. Below I have listed some of these scams for you watch out for next time you are in the market for a new vehicle.
1. The VIN# Scam involves the dealer trying to charge you for having the VIN# etched on the window, citing that it is required by the finance company. This is total rubbish. Lenders are only concerned with your ability to pay the installments.
2. Watch out for the phrase "subject to loan approval". All car loan proposals will have this phrase in it and there are a few unscrupulous dealerships out there that will try and con more money out of you by quoting this phrase as the reason why. If you have good credit this isn't something for you to worry about. This scam is usually pulled on consumers that may have bad credit, and can mean added finance fees of $1000 or more and an additional $50 a month added to your monthly payment. Getting your car loan from a bank or other financial institution can save you from being caught out.
3. One of the most common scams is the credit score scam. The car dealership will try to give you a higher finance rate by informing you that your credit score is lower than it actually is. Dealerships will try this scam regardless of you credit score. The best way to deal with this greediness is to bring a copy of your credit report with you when you go looking to buy a new car. That way there is no dispute.
4. Next is the forced warranty scam where the auto dealership will insist that in order to qualify for the car loan you will need to purchase a $2000, 2 or 3 year warranty. This is total rubbish and the truth is you don't need the warranty.
5. This is the Dealer prep scam. A dealer will slap an additional $500 charge on the vehicle for work that is not required, because cars are ready to to be driven of the lot when they are received. Try to find a dealership that doesn't charge this ridiculous fee.
6. Another fake fee is the 'dealer mark-up'. This has no purpose other than to increase profits. You can usually see this fee on an orange sticker attached to the manufacturer's suggested retail price.
These are just 6 of the many scams that can surface from time to time when you are attempting to purchase a new car. Although these scams do go on, there are many trustworthy car dealerships with integrity that can and will sale you a car for the right amount of money and without trying to rip you off. The trick is to find that dealership. Good luck!
As it is already challenging purchasing a new car, you really don't want the added pressure that some car dealers can put on you. It is normal to haggle with a dealer to lower their price, but don't get caught out by scams designed to con you out of your hard earned dollars. Below I have listed some of these scams for you watch out for next time you are in the market for a new vehicle.
1. The VIN# Scam involves the dealer trying to charge you for having the VIN# etched on the window, citing that it is required by the finance company. This is total rubbish. Lenders are only concerned with your ability to pay the installments.
2. Watch out for the phrase "subject to loan approval". All car loan proposals will have this phrase in it and there are a few unscrupulous dealerships out there that will try and con more money out of you by quoting this phrase as the reason why. If you have good credit this isn't something for you to worry about. This scam is usually pulled on consumers that may have bad credit, and can mean added finance fees of $1000 or more and an additional $50 a month added to your monthly payment. Getting your car loan from a bank or other financial institution can save you from being caught out.
3. One of the most common scams is the credit score scam. The car dealership will try to give you a higher finance rate by informing you that your credit score is lower than it actually is. Dealerships will try this scam regardless of you credit score. The best way to deal with this greediness is to bring a copy of your credit report with you when you go looking to buy a new car. That way there is no dispute.
4. Next is the forced warranty scam where the auto dealership will insist that in order to qualify for the car loan you will need to purchase a $2000, 2 or 3 year warranty. This is total rubbish and the truth is you don't need the warranty.
5. This is the Dealer prep scam. A dealer will slap an additional $500 charge on the vehicle for work that is not required, because cars are ready to to be driven of the lot when they are received. Try to find a dealership that doesn't charge this ridiculous fee.
6. Another fake fee is the 'dealer mark-up'. This has no purpose other than to increase profits. You can usually see this fee on an orange sticker attached to the manufacturer's suggested retail price.
These are just 6 of the many scams that can surface from time to time when you are attempting to purchase a new car. Although these scams do go on, there are many trustworthy car dealerships with integrity that can and will sale you a car for the right amount of money and without trying to rip you off. The trick is to find that dealership. Good luck!
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