Car Dealer Scam: Financing Scams You Should Avoid

The main reason of continuously talking about auto dealer scams is to keep the car buyers out of the unscrupulous dealer scams. Financing is one of the most popular car dealer scams. Take some time to read the following steps you need to learn. Prepare and protect yourself before going into the dealership. Read carefully:

• Do the research! You should know that your best protection against dealership scams is the research. You can find on internet everything you need to know. It will be helpful for you to get more information and make a more profitable deal. You must clearly decide for yourself how long you want to finance, know what the new car price quotes and invoice price are, models, equipment etc.
• Negotiate a price for a car that you want to buy. You should plan on negotiating, and not the payment.
• You must arrange your finance through your bank or a credit union. If you let a dealer to make your financing, it will cost you much more. If you do have to go through a dealer for financing, do not take the car home first. Instead, analyze the financial scheme without having the car sitting in your driveway enticing you. This is a trick that is especially used against those who have bad credit.
• Ask the dealer to put “extended warranty plan” in writing, so that you can take it to the bank and ask directly. During the purchase process most of the dealers will try to sell you an extended warranty plan or service contract deal. They will try to explain you that it’s a condition of your bank’s auto financing.
• Finally remember, when you buy a car, you bought it. You can’t return it.

Most importantly, you must be informed about dealer tricks and scams, to know how to deal with those. Arm yourself with knowledge and you will be good.