List of the Most Common Auto Scams

One of the most expensive purchases an average American makes is buying a new car. However, buying a vehicle can sometimes be complicated, especially when you are buying from a crooked car dealer.  In this article you can find the most common dealer tricks and scams.

Bad Credit Rating: This car fraud occurs when the dealership informs the consumer that his/her credit rating is bad. However, this may not always be true. The dealer will then offer a customer a car deal by stating they will take a chance on him/her. In this case the car buyer gets a much higher interest rate, while the car dealer gets the extra income.

Trade-in Value Reduction: Be very careful when you trade-in your old vehicle, because the car dealer will determine that your vehicle is worth a specific amount to them, which is in most cases less than what it is really worth. The car dealer will probably tell you that the dealership will have to spend extra money to make your trade-in ready for resale. Do a little research to find out what your vehicle is worth, before you agree to the price offered by the dealership. This way you can avoid the vehicle trade-in fraud.

Spot Delivery or YOYO Selling: This is a car fraud that is most used by car dealers. This dealer fraud happens when the dealer agrees to your terms and allows to take the vehicle from the dealer’s lot. Later, however, the dealer calls and informs you that the terms haven’t really been approved. When you go back to the dealership the dealer re-writes the contract and you end up paying more than originally agreed.

Odometer Rollback: Individuals or car dealers rollback a vehicle’s odometer, so that the car has fewer miles on it than it actually has. As a result of this the vehicle’s resale value increases. If the car buyer fails to notice the odometer rollback  fraud, he/she ends up paying a lot more than the vehicle is worth.