Scams in used car dealerships are no new things. Although ethical dealers are not hard to find, numerous used car dealers use shady tactics to lure their customers. This can make an already stressful process of buying cars exponentially hectic and riskier.
For such reasons, knowing the scam tactics is essential for both you and your wallet. By staying vigilant, you can easily make confident decisions in your car-buying pursuit. Most importantly, you can avoid being taken advantage of.
5 Types of Scam Tactics And How To Avoid Them
Fortunately for us, these dealerships use defined techniques to lure you. Although there are numerous ways, there are 5 most common ways these dealers use to lure you. These techniques can be countered easily if you are vigilant.
All these techniques are based on the principle of “Trust me, I am not lying.” An ethical seller doesn’t ask you to trust him/her, he/she shows you why. Only scammers use this principle.
1. The “Yo-Yo” Financing Technique
Car dealers use this scam to finance their cars. The seller uses this technique by telling you that the financing fell through at a higher interest rate or on different terms. The different terms are always more expensive than the last one.
How to avoid: Always get financing terms in writing before leaving the dealership. Never sign a blank contract.
2. The Odometer Scam
Rolling back an odometer is as easy as making an order on eBay. You simply need to buy an odometer rollback device costing roughly $200, connect it to your car’s odometer, and boom. Your once $15,000 car can now sell at a whopping $23,000.
How to avoid: Check the car’s history report (Carfax or AutoCheck) for mileage discrepancies. Compare the mileage to the vehicle’s condition (wear and tear).
3. Hidden Fees and “Add-Ons”
Car dealers who use this technique generally add what they call “add-ons” to the selling contract, thinking you won’t read thoroughly or notice. These dealers add miscellaneous charges like “dealer prep fee” or unwanted warranties and force you to pay more.
How to avoid: Read the itemized bill thoroughly and ask what each fee is. Get an “out-the-door” price in writing before agreeing to anything.
4. The “Salvage Title Cover-Up” Scam
In this scam, the dealers cover up any damage or major repairs. The car regulation authorities declared the car a total loss that these dealers hide. They present it as the best vehicle possible.
How to avoid: Get the car checked thoroughly by an independent, trusted mechanic.
5. The “Bait-Switch” Fraud
How this scam works: You see an ad, and like the car, so you contact the seller. Upon calling or messaging, you get to know that the car has been sold but they have a “better” car. The better car is always pricier than the latter.
How to avoid: An honest guy would either close the ad or directory listing. If not, he will not talk about the “better” car.
By keeping these scams in mind, you can avoid getting a faulty or overpriced car.
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