December 21, 2007, Newsletter Issue #22: Avoiding Auto Dealer Scams

Tip of the Week

Auto dealer scams are a big concern for many potential car buyers. It is probably wise to be cautious, but remember there are honest auto dealers out there. Wondering how you can tell the difference? Here are some scams you might encounter and tips you can use to avoid used car fraud..

Buyers are led to believe they can only get a car at a high interest rate.
How to avoid this scam:  Know your credit score and what kind of rate you can get before you begin shopping. When it comes to avoiding auto dealer scams, knowledge is power.

Buyers Often Ask the Wrong Questions.
When approaching the auto dealer, buyers usually have some idea of how much they can afford for their monthly payment. Unfortunately, their focus is limited to this number and dealers know it. Unscrupulous dealers use this to scam buyers. Avoid the numbers scam by:

Asking about the invoice price for the car.Asking about your total cost of the car and the loan.Understanding the loan terms and fees.Buyers Don’t Research Alternative Financing Options.
One of the easiest ways to avoid used car fraud and scams? Get your financing before you go to the dealer. Even if you get a great deal on the car, many auto dealer scams come into play when it's time to talk financing. Head to your bank or credit union before you shop for your car. That doesn't mean you shouldn't find out what financing options are available from the dealer, but you are in the best position to compare and negotiate when you shop around.

 

 

 

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