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.

It should be noted that the services provided by these dealerships are necessary, but financing vehicle through these car dealers is much more expansive.

Another reason to avoid purchasing a car from these car dealers is that different car scams and dealer tricks are used here. The car buyer who purchases a car from a buy here pay here dealer usually ends up paying hundreds and even thousands more by having to make high payments on a vehicle that was totally mis-represented.

Keep in mind that you can still avoid becoming a victim of this car fraud if you do the following:

- know your credit history and your credit score
- know the vehicle you want and research it’s fair value on the internet
- research the loan rates that a credit union or bank would give for a qualifying borrower (for reference)
- be prepared to pay for a 3rd party mechanical inspection/report on the vehicle before you commit to it
- be patient and be willing to simply walk away if you feel pressured or ’smell a rat’
- invest in good advice: study a good buying guide, from insiders who can teach you the dirty tricks to expect
- be patient and confident
- ask questions and pay strict attention to financing rates and terms
- if a warranty is offered or promises made, insist that they commit them to writing — it’s the law
- ask about grace periods and repossession policies, if you think this might become an issue (or not)

Window etching. For a fee anywhere from $200 to $1150 the dealer will etch the VIN number onto the windshield of the vehicle. This is really an unnecessary fee for an unnecessary service. The dealer makes a huge profit for something that you can do yourself with a kit for $30.
Rust proofing, fabric protection and under coating. These are all pretty worthless. It can cost you hundreds even thousands of dollars. Don’t bite. Salesman have been trying to push these on their customers for years.

Dealer prep. This is a great example of automobile dealer fraud. You’re buying a new car right? This vehicles preparation has already been done by the manufacturer. Any other preparation that needs to be done needs to be done by the dealership not by the customer. If you see this fee in your contract tell the salesman that you are not paying for it. If they try to tell you that this is a necessary fee tell them goodbye. At this point you probably have their attention. They will not want to lose your business. Make sure they take it off the sales contract.

Market adjustment fee. This is a fee that the dealer charges for a hard to get popular vehicle. Yes it’s true that sometimes you have to pay more for a popular vehicle, but if the vehicle is in stock and on the lot don’t fall for this scam.

Extended warranty. It is a personal choice whether you’d like to purchase an extended warranty or not. Be careful though sometimes dealerships will tell their customers that they can only get financing if they take out an extended warranty. If this does happen simply refuse. If you still get nowhere tell the salesman to put it in writing in the sales contract. At this point they will find a way to take it off the contract. If you are interested in an extended warranty it may be best to know to purchase it somewhere other than at the dealership.

Environmental fee. Some dealerships try to explain that this fee was put into place by the government. There is no such thing. This is another good example of automobile dealer fraud.

Transportation fee. This is a legitimate fee. Make sure you’re not being charged for it twice. Some salesman will try to do this. Just beware.

Be suspicious. It’s OK because no one will look after your best interest except you, especially in an automobile dealership. Use your own judgment too. If something doesn’t sound right, maybe it’s not. Avoid automobile dealership fraud anyway you can.

1. Check if the car you are going to buy online exits at all. If it is possible, make an appointment with the car selling company to see the car in person. Use internet as a useful buying tool which enables you to research the car you want and to communicate with the seller via email, but make your final purchase decision in person.

2. Don’t send cash through the mail even if the amount you are paying is very small. Most likely one of the oldest online car scams will be used: you send the money; the seller gets it, but claims that it never arrived. So whenever you buy a car, remember that a check is always the best and safest method of payment.

3. Learn about other car buying scams. Another common example of online car buying scams is when scammers try to sell vehicles they never have. They simply steal pictures from legitimate car listings online, place them online and wait for a naive buyer to take the bait. As soon as the unsuspecting buyer pays by mailing cash, check, or a money order, the scammers disappear with the money.

4. Don’t forget that buying a car online is like buying a car locally. Do your research, closely examine pictures, do a value check on the Kelley Blue Book website, read reviews from experts and owners, see if the vehicle in question has even been the subject of a recall.

5. Consider using a desktop car finder. These applications ease the process of finding vehicles on sale because they search hundreds of car buying websites for you at once! You can find your dream car in literally less than 5 minutes!

Following are the key advantages that make people to buy a new car:

• A new car has not been owned by anybody else before
• Used car frequently breakdowns
• You will spend a lot of time and amount of money to get old car running properly, saying by another words, to bring a value of the car
• The safety features are required nowadays
• A lot of people look for “airbags” feature for driver and front passengers, that is why they choose a new car
• Diesel and other optional fuels (LPG) are demanded more and more. For many people “green” cars are priority and they prefer the efficient running.
• Regarding to this point, there is important information about leading manufacturers such as Ford, Fiat and Honda. They are going to introduce LPG new cars models this year.
• A lot of Americans buy a new car because they love technical gadgets and all the new innovations the car manufactures are incorporating into their latest models

Another important and essential reason why people buy a new car is to avoid auto dealer fraud and don’t let the dealers scam them.

If you find yourself in a situation where a dealer has defrauded you, then you should contact an attorney immediately. Meet with an attorney who is experienced in auto fraud cases, as one of the California lawyer specializing in California Lemon Law and Dealer Fraud, Hovanes Margarian completely understands what can happen as a result of buying a “lemon” from a dealership.

The Interior of the used car

• A cabin with impaired dashboard, missing knobs, handles, and buttons
• Shabby and frayed seat belts
• Used and worn pedals
• Very high mileage
• Discolored and fade carpeting,
• Electrical problems

All these interior elements are signs of flood damage.

Under the Hood

• The engine, radiator, battery should be relatively grease-free
• Belts and hoses should be flexible and unworn
• Wet spots are the signs the leaking oil or fluids etc.

Engine oil of the used car

• Keep the engine cool and check if all the fluids are clean,
• The oil level should be between the ‘full’ and ‘add’ marks
• Normal engine oil is brown or black, depending on when it was last change
• Check the transmission fluid dipstick right after the car has been driven for more than 10 minutes
• Leave the engine running and put it in neutral or park according to the owner’s manual
• Inspect the fluid’s condition and smell

•    A finance document presenting payments, deposit, interest rate and other financial items is a binding contract, giving you specific legal rights.

•    You own the car subject to making payments only. The dealer cannot change that once you take possession.

•    Keep all your paperwork copies and anything else associated with the sale. If the finance manager asks for your papers at any time for any reason, refuse! Keep these documents in a safe place, not the car.

•    If you are called back to the dealership to sign extra papers, do not go.

•    Have a friend as a witness whatever is being told to you. This will stop the dealer from taking your car as hostage, an all too common happening.

•    If an argument arises with the dealer over the contract and the dealer demands the car back, park it in a garage or remote location until the matter is resolved, to prevent it from being taken.

•    Collect a complete timeline of everything that happened from the time you thought of purchasing the car until the car was taken away. Try to memorize exact names of dealership personnel and any statements that were made to you during conversations with the sales and finance staff.

•    Store trails of all monies you had invested into the purchase, including registration, insurance, down payment and trade. Never pay cash and always get a receipt!

If you believe you are a victim of a Spot Delivery scam feel free to contact an experienced dealer fraud attorney Hovanes Margaryan 818-990-2414.

Do you know that an accident in the road can be planned? You can be a victim of auto insurance crime. Car insurance firms called a tactic ’swoop and squat’ whereby the 2 cars were on the whole working in tandem to set off a collision, and make it seem like your fault. The auto that suddenly cuts, or swoops, into the lane is known as the swoop car. The one that’s hit is known as the squat auto.

How can you protect yourself against becoming a victim of a car insurance fraud? Here are tips you can do to prevent yourself from turning into a victim of a planned accident.

1.    Always keeps your eyes on the road. Don’t talk on the telephone while driving if it isn’t urgent situation. Don’t talk to passengers at your back because it may cause you distraction from driving. Do not forget to finish all tasks before you will start driving like eating, putting make-up, tying a tie, etc.

2.    Do not ever follow closely automobiles in front of you to avoid collision. The auto in front of you could all of a sudden stop for any reason; you will be ending up hitting that vehicle and worst may be you’ll be at-fault for the accident.

3.    The last tip to do is not to believe that your reasonable car insurance can totally protect you from crime debt. The fraudsters are much curious about getting money as much as they want from your insurance company.
If you believe that you can fight vehicle insurance fraud by not having coverage, you will not be able to save yourself from spending much if you meet a genuine accident.

Anyone can easily identify a good used car and reduce a risk of the potential lemons, if he or she takes into consideration the following important factors:

The Reliability Record
The reliability-history is committed to help the auto buyers reducing a risk of the used car

• Before to choose a used car, select a car model with reliability record
• Being an annual subscriber survey for Consumer Reports (CR’s), everyone will be provided by special real-world reliability information
• This reliability information can help to strict a car model selection
• Look into the best and the worst used cars for a quick reference etc.

Buyer’s Guide as the Window Sticker
The American Federal Trade Commission obligate the auto dealers to find out and post a “Buyer’s Guide” in every used vehicle. This guide will include:

• Trade information about the used car if is being sold ‘as is’ or with a warranty
• Information about the repair costs that the auto dealer is obligated to pay
• If there were any changes in coverage, the Guide will provide you “before the sale” information
• Information override any different provisions in your sales contract
• If the Buyer’s Guide says that the vehicle is covered by a warranty, the dealer must honor that warranty etc.

Choice of a right and reliable used car can save you trouble about possible Lemon law issues sooner or later.

The Law Offices of Hovanes Margarian are designed to assist California consumers with all of their California Lemon Law, Dealer Fraud and related cases. To deal with the negligence and abuse of power towards the consumers, the law firm has vast experience in the automotive industry and has successfully recovered thousands of dollars lost by consumers.

The following are some of the valuable tips on how to avoid the auto dealership scams and particularly how to avoid becoming a victim of sneaky car dealers. Look at the following auto financing scams:

• Auto Financing Scam 1 – YoYo Scam

YoYo is a very common car dealership scam. Car dealer will allow you to bring the car home as soon as possible explaining that you have excellent credit and a good APR on the loan. Car dealer will take care of your financing matters but a few days or weeks later he will contact you again and tell you that there was a problem with your financing plan and you didn’t qualify for the interest rate. So you will be asked to go back and work it out. If you become a victim of this scam prepare to pay a much higher interest rate and maybe a fee. Be wary of this trick and avoid it at all costs if you detect it.

• Auto Financing Scam 2 – Window Etching Scam

Another common financing scam is window etching. This scam happens when the dealer “scratches” the vehicle glass with part of the car’s VIN number, for which a dealer will charge you $300-$900 for window etching and they will tell you that you have to pay the money to get the loan because the banks insists on it. Some dealers might tell you that the etching is free but will add on the etch money to your monthly payments. To avoid this scam persuade the dealer to put it in writing whether the etching is free or simply etch the car yourself. In fact, window etching is almost pure profit for the dealership.  It costs the dealer about $14 or less, and “do it yourself” etching kits are available on the Internet for $15 to $20.  Reportedly dealership marketing plans provide for $900,000 annual profits from etching.

• Auto Financing Scam 3 – Preparation Fees Scam

In general, preparation fees cover the peeling of plastic off the seats, checking of fluid levels, vacuuming the interior, and washing and polishing the exterior. The dealer may tell you that you must pay a fee for this, but you will know that have not to pay anything because it is already paid for and listed on the MSRP.

• Auto Financing Scam 4 – Market Adjustment Scam

During this scam the dealer will tell you that your desired vehicle is very popular and is very much in demand. Even if it really is, you should not be attracted. In order to sell you a “popular” car, the dealer will imply some “market adjustments” amounting to a few thousand dollars. Take a look of MSRP tag. Remember you should never pay a few thousand dollars more than the MSRP set by the manufacturers

• Auto Financing Scam 5 – Warranty Extension Scam

The car dealer will tell you that you are required to pay for an extended warranty because it is one of the obligatory conditions of the bank. You can easily avoid this scam. Just ask the dealer to define clearly in writing that “extended warranty” is required for the loan to be approved. Be sure, he will probably find a way to have it excluded. Terminate the dealt with this car dealer and go to other dealerships.

Always keep in mind all these scams before you are going to buy a car, irrespective of a new or a used car. Think very carefully and do not buy on impulse.