Car Dealer Fraud: Sales Tactics

Dealer income on sales of new cars are not so much; dealers make their income from financing, insurance, service contracts, added charges and options, repairs, and the sale of used cars. In other words, there is huge financial motive to make profits on these items to offset the dealer’s inability to make profits off the sale of the car itself.
A used car sale has the same possibility for dealer fraud as a new car sale, plus the added fact that the buyer doe not really know what he or she is buying. The history  of a used vehicle is easily distorted or kept hidden, and buyers often do not know its real value.

The actual discussion for the sale of a car is one of many ways dealerships and Web sites have of fleecing you, says Remar Sutton, consultant, on-air authority, author in his book “Don’t Get Taken Every Time”. He says to think of your friendly dealer as playing a game with your pocketbook. “Creeping around every dealership corner, waiting for you behind pop-ups on your computer screen, is some item or service that will grab a little more money. Most of these extra income sources are not even presented to you at dealerships until the contract is presented to you for signing…sometimes you aren’t even aware that you purchased them. Understanding the auto dealer fraud may help to prevent parting with more of your hard-earned money than necessary.