Car Dealers have numerous ways to scam a potential buyer. Let us examine a few of them so you understand what to look out for when making your next car purchase:
The VIN# Window Etching Scam
Basically a dealer will charge you $300-$900 for window etching and they’ll tell you that you have to pay the money to get the loan because the banks insists on it.
Some dealers might tell you that the etching is free but will add on the etch money to your monthly payments to make up for it.
The best way to avoid this scam is to force the dealer to put it in writing if they say that the etching is free or simply etch the car yourself.
You can find an etch-it-yourself kit for $30 or simply don’t get the car. Remember a lender does not require that you purchase any extras on a car. All the lender cares about is that you can make your payments on time regularly. Do not buy into it.
The Financing Scam
I have mentioned this before already, but here it is in more detail.
Basically you trade in your old car and the finance manager tells you that your interest rate is good and then gives you the car.
After a week or two passes you get the call from him that you did not qualify for the interest rates that they gave you upon making the deal.
Every new purchase has a clause in the contract that usually states that the deal is “subject to loan approval.”
This gives the finance manager a loop hole in getting more money from you. All that this means in the contract is that the deal isn’t finished yet even you already have possession of the car and have signed the contract.
The dealer can then charge you $1000 more in finance fees and up your monthly payments by $50. This scam is generally pulled on people with bad credit because it is more plausible.
If you are wondering why they would sell you the car at 6% APR if they knew you had bad credit (remember they ran the credit search already) the answer is easy; to market the car. You can avoid this scam by not financing the car with the dealer if you know that you have bad credit.
You are better off going to a credit union and financing the car yourself. When you get a new car the deal should be made on the price of the car, not on the monthly payments.Tags: contract, credit, dealer, etching, finance, financing, money, monthly, payments, yourself