5 Car Scams You Must Avoid

1. Yo-Yo financing

The car dealer sells you a car and allows you take it immediately home. You finance a car through the car dealer, but several days later you learn that the finance has fallen through. Then you are told to make new financing again through the auto dealer, at a much higher cost for you, and a much higher profit for them. Avoid this anyway; this is an auto dealer fraud!

2. Window Etching Fee

This is one of the most absurd but also common car scams. The car dealer offers to window etch in the window of your car, at a price ranging from $300 to $1000. To avoid dealer fraud just purchase and do window etching your own. It only costs $20.

3. Dealer Preparation Fee

In most cases auto dealer charges you a preparation fee to prepare your car. Often charge is $500 or more just to peel off the plastic protection on the car. In most cases costs have already been covered by the manufacturer. For removing, you can tell the car dealer to add some amount of money as preparation fee on the next line. If they refuse to do so, you should simply avoid the dealership fraud.

4. Market Adjustment Fee

In this case of dealer fraud, the car dealer tells you that your car is a really popular vehicle, and to sell you the vehicle you have to pay “Market Adjustment Fees” of several thousand dollars. Maybe the car is very popular, but if it is in stock, there is no extra money for it. The auto dealer sells the car, gets the trade-in, and makes extra money. So this is a caution, this is a dealer fraud.

5. Extended Warranty fraud

This one is very old and still in use. In most cases when you take a loan, the car dealer will say that you have to pay for an extended warranty because the bank requires it. So you can tell the auto dealer to write that the extended warranty is required for the loan. If they refuse, then please do not have any transaction with that car dealer.

If you or your loved one is a victim of car dealer fraud, please contact the Law Offices of Hovanes Margarian.