Examples of Car Dealership Scams and How to Beat Them

When individuals are looking into the purchase of an automobile, they may feel that they will be safe from being taken advantage of if they are buying a car from a car dealership as opposed to a used car sales lot or private individual. This is not entirely true. Although many automobile dealerships will do business in a fair manner, there are always some which may succumb to the pressure of using various dealership scams in order to sell the vehicles or get a higher priced sale. The following paragraphs will highlight a few of these car dealership scams which do occur from time to time.

Multiple Advertising Fees

One type of dealership scam which consumers need to be on the lookout for relates to advertising fees. Most car manufacturers add these onto the factory invoice when they ship them to the dealership; however, at times individuals have been known to have to pay for advertising fees twice as dealerships will add the fees onto the vehicle contract as well.

The best way to beat this type of scam is to inquire about any advertising fees which are added onto the total price which the consumer has to pay. If there is an advertising fee on the price that is paid by the purchaser, one should ask the dealership whether or not this fee was already charged on the factory invoice. It is not good enough to accept the dealerships response and one should ask to see the factory invoice to verify that the advertising fee had not already been included on the primary invoice.

Market Adjustment Fees

Market adjustment fees are extra fees which car dealerships add onto the price of certain types of popular vehicles. This usually occurs with vehicles that go out of stock quickly and since they are such a hot item, car dealerships feel justified in adding this extra fee onto the vehicle purchase price. In reality, no matter how popular a vehicle is at the moment, there is no reason for the consumer to have to pay above the MSRP.

The best way in which to avoid this type of dealer scam is to never pay over the MSRP. By paying more than the MSRP, the vehicle purchaser is in reality saying that this type of dealer scam is okay and this should not be the case.

Quote and Actual Price Differ Greatly

Another dealership scam which consumers need to be aware of deals with the total amount that an individual pays for an automobile. There have been instances where prospective car purchasers have been quoted a set price for the total purchase yet when it came time to sit down and sign the paperwork, there was a large discrepancy between what was quoted and what is being charged in the end.

An individual can prevent this from occurring by ensuring that what is being quoted is the exact figure that will be on the paperwork when it comes time to the sign. This will let the car dealership employee know that you mean business and will not pay a penny more than the quoted price. Making a statement of this kind to the sales associate will set the tone and make it known that you will not be taken advantage of in this manner.

Buying vs. Leasing Scams

When individuals walk into a car dealership, they will most likely know whether they wish to lease a vehicle or purchase it outright. When one leases a vehicle they are using it for a period of time, usually two years, and will then return the vehicle once the time limit is up. Alternatively, when an individual purchases a vehicle, they will pay for the car on a monthly basis usually and will then own the vehicle outright once the payments have all been made. However, there are times when an individual goes through the car selection process wanting to buy the vehicle and will ultimately find out when it comes to signing the paperwork that the prices which were quoted are for leasing a vehicle. In the worst case scenario, some individuals sign the paperwork without thoroughly reading the contract and later determine that they have just signed leasing documents as opposed to purchase documents due to a scam perpetrated by the dealership when that entity had knowledge that the consumer wanted to pursue one vehicle acquisition over the other.

The best way to prevent being a victim of this type of dealership scam is to thoroughly read all documents being put before them. It is crucial to make sure that the documents are purchase documents as opposed to lease, or vice versa, depending on the desire of the consumer. This will help to curtail any scams of this type from occurring.

It is important to reiterate that most car dealerships do business in a fair manner; however, it is always important to be on guard when it comes to possible dealership scams that can occur. This will help to make the car buying experience as good and fair as it possibly can be.

Chris Contessa is an automotive enthusiast that runs several automotive forums and websites. You can find Dealer reviews and ratings at his website: http://www.DealershipRatings.com