Common Car Selling Scams

The common scams you should be cautious about when you buy a car

Here are some of the common scams you should be cautious about when you buy a car.

Buy A Car Scam #1 - The Financing

This is how it works. 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 didn't 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 out of you.

All that this means in the contract is that the deal is not 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 simple; to sell 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 buy a new car the deal should be made on the price of the car, not on the monthly payments.

Buy A Car Scam #2 - Your Credit Score

This is when the finance manager tells you that your credit score is lower than it really is so that they can get you for higher interest rates. Isn't that ridiculous?!

It's tried on everyone - never mind if you have good or bad credit.

It's also easy to avoid. Just get your own copy of your credit report from Equifax.com, and bring it with you.

No one can lie to you about your credit score if you have your own copy of it. If your paper and theirs doesn't say the same thing, go somewhere else because they're lying to you.

If you're feeling up to it, tell them to their face - and watch them squirm uncomfortably!

Buy A Car Scam #3 - Window Etching

Basically a dealer will charge you $300-$900 for window etching and they will tell you that you have to pay the money to get the loan because the banks insists on it.

Car Buying Scams To Avoid

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 get an etch-it-yourself kit from http://www.CarEtch.com for $30 or just don't buy the car.

Remember a lender doesn't require that you purchase any extras on a car. All the lender cares about is that you can make your payments on time regularly. Don't buy into it.

There are many more scams that dealers use all the time when you plan to buy a car.