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Article: Automobiles - Automobile Scams
By Pete
Lance
People hate car dealers. Of course, there are
always nice guys, but many car dealers just have to cheat their way
to profits. Here are the top 5 auto scams that you absolutely must
avoid, or risk paying way too much for your car.
Scam 1: The Yo-Yo Financing Scam
The
dealer sells you a car and allows you to take it home immediately.
You finance your car through the dealer, but a few days later, the
dealer calls and tells you that your financing has fallen through.
You are then told to set up new financing through the dealer, at a
much higher cost to you, and a much higher profit to them. Avoid
this at all costs! If you have bad credit, don't finance at the
dealer. Arrange your own financing. If you finance through the
dealer, never drive off your car immediately. You should wait at
least 24 hours before taking your new car, so as to make sure
financing is complete. This allows the dealer no way to play the
scam on you.
Scam 2: The Window Etching Fee
This is one of the most ridiculous but common scams
I've heard off. Basically the dealer offers to window etch your VIN
number in the window of your car for you, at a price ranging from
$300 to $1000. Some people have tried to talk down the price, and
they often succeed, but the dealer still makes a few hundreds off
you. The easiest way to solve this problem? Just purchase a do it
yourself window etching kit at any decent auto parts store. It only
costs $20.
Scam 3: The Dealer Preparation Fee
The dealer charges you a preparation fee to prepare
your car. Some often charge an outrageous $500 or more just to peel
off the plastic protection on the car, test drive the car and put in
the fuses. Most MSRP stickers indicate that these costs have already
been covered by the manufacturer. In fact, some car dealers
permanently print it on the buyer's order to make it seem mandatory,
but one way you can get it removed is by telling the dealer to add a
credit (of the same amount as the dealer preparation fees) on the
next line. If they refuse to do so, you should simply walk out of
the dealership.
Scam 4: The Market Adjustment
Fee
In this scam, the dealer tells you that your car is
a really popular vehicle, and so to sell you the vehicle they have
to add "Market Adjustment Fees" of several thousand dollars. This
amount is usually indicated on an orange sticker next to
manufacturer's MSRP sticker. A car may be popular, but if it is in
stock, it is not worth paying extra for it. Many buyers, especially
trade-in buyers, have been ripped off before. They focus only on
what they get for their old car, and so they don't see the big
picture. They may get an extra few thousand for their car, but they
don't notice that they are charged a much higher Market Adjustment
Fee. The dealer sells the car, gets the trade-in, and makes an extra
off the buyer. Never pay more than the manufacturer's MSRP.
Scam 5: The Extended Warranty Scam
The
Extended Warranty scam is quite old but it is still in use. And many
people still do fall for it. Basically, when you take a loan on your
car, the dealer will say that you have to purchase an extended
warranty because the bank requires it for the loan. Avoiding this
scam is very simple actually. Tell the dealer to write down in black
and white that the extended warranty is required for the loan and
they'll most probably find some excuse to remove the extended
warranty. If they refuse to do so, then please do not buy from that
dealership. Actually, the extended warranty is a great thing to
have, but don't ever get it from the dealer. You can get far better
deals elsewhere, especially online.Don’t get ripped off by car
dealers!
Pete Lance is the founder of http://www.USGasTracker.org a premier company which helps the consumer save money on
gasoline. Thousands of gas stations across the nation are tracked
daily to guarantee the lowest prices on gasoline for any zip code in
the United States.
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