Home | Automotive
As it is already challenging purchasing a new car, you really don't want the added pressure that some car dealer's can put on you. It is normal to haggle with a dealer to lower their price, but don't get caught out by scams designed to con you out of your hard earned dollars. Below I have listed some of these scams for you watch out for next time you are in the market for a new vehicle. 1. This scam deals with etching the vehicle's VIN# on the window. There are dealerships that will try to charge for this added feature, saying it is a requirement by a lender. It's not! No lender will require you to pay for any extra options that you don't need. The truth is they only care about is whether or not you pay your instalments on time. 2. "Subject to loan approval" is a common phrase on car loans. Some dodgy car dealers will try to scam you by mentioning this phrase, with a view to squeezing more money out of you. They can charge finance fees of $1000 up and and added $50 to you payments if you have a bad credit score. Those with good credit needn't worry so much. The best thing to do to avoid this scam is to get a loan from a bank instead. 3. One scam that is common regardless of how good you credit score is, is funnily enough, the credit score scam. Dealer's will attempt to charge you a higher interest rate by saying your score is lower than it actually is. You can avoid this one by simply bringing your credit report along with you. 4. Next is the forced warranty scam where the auto dealership will insist that in order to qualify for the car loan you will need to purchase a $2000, 2 or 3 year warranty. This is total rubbish and the truth is you don't need the warranty. 5. The dealer prep scam is another good one. It involves an adiitional $500 fee for doing basically nothing. Ther is no preparation as the car usually arrives at dealership ready to be purchased and driven straight of the lot. Avoid paying this or visit a dealership that does not charge this fee. 6. Another fake fee is the 'dealer mark-up'. This has no purpose other than to increase profits. You can usually see this fee on an orange sticker attached to the manufacturer's suggested retail price. These are just 6 of the many scams that can surface from time to time when you are attempting to purchase a new car. Although these scams do go on, there are many trustworthy car dealerships with integrity that can and will sale you a car for the right amount of money and without trying to rip you off. The trick is to find that dealership. Good luck!
Article Source: http://www.just-article.com
Roberto Beiro has collected together many other great car articles on his website. He is also the author of many original articles such as tips on buying a used car.
Please Rate this Article
5 out of 54 out of 53 out of 52 out of 51 out of 5
Not yet Rated
