5 Auto Scams You Absolutely Must Avoid!
People hate car dealers. Of course, there are always nice guys,
but many car dealers just have to cheat their way to profits.
Here are the top 5 auto scams that you absolutely must avoid, or
risk paying way too much for your car.
Scam 1: The Yo-Yo Financing Scam The dealer sells you a car and
allows you to take it home immediately. You finance your car
through the dealer, but a few days later, the dealer calls and
tells you that your financing has fallen through. You are then
told to set up new financing through the dealer, at a much
higher cost to you, and a much higher profit to them. Avoid this
at all costs! If you have bad credit, don't finance at the
dealer. Arrange your own financing. If you finance through the
dealer, never drive off your car immediately. You should wait at
least 24 hours before taking your new car, so as to make sure
financing is complete. This allows the dealer no way to play the
scam on you.
Scam 2: The Window Etching Fee This is one of the most
ridiculous but common scams I've heard off. Basically the dealer
offers to window etch your VIN number in the window of your car
for you, at a price ranging from $300 to $1000. Some people have
tried to talk down the price, and they often succeed, but the
dealer still makes a few hundreds off you. The easiest way to
solve this problem? Just purchase a do it yourself window
etching kit at any decent auto parts store. It only costs $20.
Scam 3: The Dealer Preparation Fee The dealer charges you a
preparation fee to prepare your car. Some often charge an
outrageous $500 or more just to peel off the plastic protection
on the car, test drive the car and put in the fuses. Most MSRP
stickers indicate that these costs have already been covered by
the manufacturer. In fact, some car dealers permanently print it
on the buyer's order to make it seem mandatory, but one way you
can get it removed is by telling the dealer to add a credit (of
the same amount as the dealer preparation fees) on the next
line. If they refuse to do so, you should simply walk out of the
dealership.
Scam 4: The Market Adjustment Fee In this scam, the dealer tells
you that your car is a really popular vehicle, and so to sell
you the vehicle they have to add "Market Adjustment Fees" of
several thousand dollars. This amount is usually indicated on an
orange sticker next to manufacturer's MSRP sticker. A car may be
popular, but if it is in stock, it is not worth paying extra for
it. Many buyers, especially trade-in buyers, have been ripped
off before. They focus only on what they get for their old car,
and so they don't see the big picture. They may get an extra few
thousand for their car, but they don't notice that they are
charged a much higher Market Adjustment Fee. The dealer sells
the car, gets the trade-in, and makes an extra off the buyer.
Never pay more than the manufacturer's MSRP.
Scam 5: The Extended Warranty Scam The Extended Warranty scam is
quite old but it is still in use. And many people still do fall
for it. Basically, when you take a loan on your car, the dealer
will say that you have to purchase an extended warranty because
the bank requires it for the loan. Avoiding this scam is very
simple actually. Tell the dealer to write down in black and
white that the extended warranty is required for the loan and
they'll most probably find some excuse to remove the extended
warranty. If they refuse to do so, then please do not buy from
that dealership. Actually, the extended warranty is a great
thing to have, but don't ever get it from the dealer. You can
get far better deals elsewhere, especially online.Don