Top 10 Car Dealer Scams
Thought you'd heard about all the kinds of scams that could happen to an unsuspecting consumer? Which scams have you fallen for? CarBuying Tips.com, a consumer advocate web site compiles a list every year of the Top 10 Dealer Scams. Not only is it disturbing to learn about such scams, but there are many buyers who don't notice these scams on their paperwork until days later when it's too late.
According to Jeff Ostroff, President and CEO of ConsumerNet.Inc., which runs CarBuying Tips.com, "some dealers prey on consumers with bad credit who are desperate to sign any deal." "Some dealers," says Ostroff, "force car buyers to buy unwanted overpriced extras such as VIN number window etching, extended warranties, gap insurance, and credit life insurance."
The following top 10 were included on CarBuyingTips.com's sixth annual 2002 list of dealer scams:
It is possible to avoid these scams, says Ostroff, if you know your rights before signing. CarBuyingTips.com advises people to arrange their financing ahead of time before purchasing a vehicle and avoid the scams and cash flow shell games of car dealer financing. Many consumers may not realize that car financing is NOT a service that car dealers perform. Rather, it is a PRODUCT they sell you. Therefore, it's in their best interest to do everything they can to keep you from bringing in your own financing.
Something many people also don't realize is that each time your credit score is checked, it lowers your overall credit score. Some dealers have been known to lie to consumers, telling them they will not accept a credit union draft or online car loan bank draft because they bounce their checks. This is how they force you into financing with their higher APR car loan. This, of course, would entail more credit checks. If this was true, says Ostroff, the media would be on this and there would be lawsuits.
The best thing to keep in mind, advises CarBuying Tips.com is to go elsewhere if you realize you're being scammed.