Especially for those with bad credit, trying to buy a reliable used car can be a nightmare. Unscrupulous car dealers feed on the desperation of those who need a car and who are grateful just to be approved for one, no matter the requirements. Though most used car dealers are honest, there are a number of dealers who will scam a would-be car buyer through many different devious methods. Knowing what to watch out for can put the car buyer on the offensive and help them avoid being taken. Below are a few of the top scams perpetrated by these dishonest dealers.
Extended Warranty Scam
One such scam insists the car buyer purchase an extended warranty or the bank will not approve the loan. This is just a ruse for the dealer to squeeze more money out of the buyer and is patently untrue. Often the dealer won’t even tell the customer the’re buying a warranty and will work it into the monthly payments. The best way to thwart this practice is by asking the dealer to put this “requirement” in writing. If they refuse, go somewhere else.
The Sold As-Is Scam
Never buy a vehicle from a dealer that states it is “As-Is” with no warranty. Often these cars have previously been wrecked and in most cases the dealer will not divulge this information. Upon purchasing such a vehicle, there will be no recourse if it is later discovered that the vehicle was wrecked or otherwise damaged. If the dealer is unwilling to offer a minimum thirty day warranty, move along. If they cannot back up the vehicle with a warranty, that tells the buyer the dealer is not disclosing important information about the vehicle that could mean big problems for the buyer later. If it breaks down a week after purchase, the buyer will still be responsible for paying it off.
Dealer Asks Buyer To Resign Papers For a New, Lower Rate
This scam seems to be gaining steam with dishonest car dealers. Generally, after the buyer has had the car for about a week , the dealership will call with “great news.” They will claim that they’ve gotten the buyer a new lower loan with a lower APR and all the buyer has to do is come in and resign the papers to take advantage of this great deal. What actually happens is the loan may be extended from 48 months to 60 months with lower monthly payments, however, the buyer will be paying more for the car than they would with the original arrangement. This method actually increases the buyer’s APR.
Do Some Research Before Buying a Used Vehicle
Before ever accepting the terms of a car loan and signing those papers, take a day or two to do some investigating. Read up on recent scams and arm yourself before you ever begin the process of looking. By being well-informed, a buyer can avoid the pitfalls of dishonest car dealers and save money, time, and headaches.
Tags: car dealer scams
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