Auto Financing Scams You Should Avoid
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Most car dealers are thought of as predators who dupe customers and take advantage of them. This is perhaps more accurate than not. Unfortunately, there is some liability on the buyer's end. Most... |
Most car dealers are thought of as predators who dupe customers and take advantage of them. This is perhaps more accurate than not. Unfortunately, there is some liability on the buyer’s end. Most buyers are just not knowledgeable about purchasing new or used cars. Read this article to avoid some common auto financing scams that dealers may use on you to enjoy extra profits.
The first scam to avoid is called the yo-yo scam. Here the dealer gets you out of the door with the car and has you bringing it home as soon as possible. He says he will handle the financing and not to worry about it. A few days later, he contacts you and tells you that there was a problem with the financing plan. You have to set up a new one through him. Of course, it comes with a much higher rate than you had previously planned.
This is a trick that is especially use against those who have bad credit. Never have your financing done through the dealer. Instead arrange it on your own. 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.
Another scam is what is known as the window etching scam. Here the dealer offers to etch the VIN number of the car onto the window. Of course, he will do this only for a fee. Oftentimes the fee will be astronomical — $500 or more. This is what they do to compensate for being talked down on price for the car. If you buy your own etching kit, you can do it yourself for $20.
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