Auto Financing Scams
Author: Gregory Ashton

Car dealers are often portrayed as predators just waiting for
an unsuspecting customer to come along. This is because many
people believe that they are always on the prowl for
unsuspecting buyers that are not very knowledgeable about cars.
This can be unfair because we can argue that there are car
dealers out there who would not cheat just to get an extra
profit.

How do you tell the difference?

To avoid becoming a victim of sneaky car dealers, look at the
following auto financing scams.

Yoyo scam

You will be allowed by the dealer to bring the car home as soon
as possible. The dealer will take care of the financing, a few
days later he will contact you again and tell you that there
was a problem with your financing plan. He will tell you to set
up a new financing scheme through him which, of course, will be
at a higher cost and this will also entail a very high profit
on the dealer's part.

Be wary of this trick and avoid it at all costs if you detect
it. If you have a bad credit standing, don't have your
financing done by the dealer and make arrangements for your own
financing. If you ever do avail of the dealer's financing, you
should never drive the car back to your home immediately. Wait
for at least 24 hours just to make sure that the processing of
your financing scheme has been completed already. By allowing 1
whole day to pass by, you are assured that the dealer cannot use
this scam on you.

Window etching trick

Window etching is a very common scam. What the dealer will do
is to offer to etch the VIN number of your car onto the window
of the car for a price. Basically, the price ranges from as low
as $300 to as high as $1,000. Some buyers think that they did a
good job by being able to talk down the price to a few hundred
dollars, but unfortunately for them, a few hundred dollars is
still a good amount of money. The best way to avoid this kind
of scam is for you to buy an etching kit that you can do on
your own. This is available in most auto shops and costs around
$20. See how much they profit from you!

Preparation fees

For preparing your car, the dealer will often add an additional
preparation fee to your bill. Just to conduct a test drive,
replace fuses, or take the car's plastic cover off will have
your bill increasing by at least $500! If you visit other
shops, you can get the information that these add on costs are
already included in the MSRP as set by the manufacturer. Some
dealers automatically add it to the buyer's order to make it
look mandatory. To take care of this scam, you can ask the
dealer to classify it as credit (it should be identical to the
amount of the preparation fee) on the following line. If the
dealer does not agree to this, you can just simply walk away
from the dealership.

Market adjustment

The dealer will convince you that the vehicle you want is
selling like hot cakes and very popular. In order to sell you
the vehicle, they will do some "market adjustments" amounting
to a few thousand dollars. This is usually indicated by a tag
near the MSRP tag set by the manufacturer. Even if the car you
want is very popular and is very much in demand, if it is in
stock you should not be tempted because getting a "popular" car
is not worth it if you have to pay a few thousand dollars more.
You should never pay more than the MSRP set by the
manufacturers. If you do, then you are allowing others to take
advantage of you.

Warranty extension

Although this type of scam is old already, it is still being
used and there are many who fall for this trick. What happens
in this kind of scam is that when you make a loan for the car,
the dealer will tell you that you are required to purchase an
extended warranty because it is one of the conditions of the
bank. There is a simple way of avoiding this scam. Ask the
dealer to specify clearly in writing that the extended warranty
is required for the loan to be approved. The dealer will most
probably find a way to have it excluded. If he persists in
including the extended warranty, do not do business with this
guy and go to other dealerships.

These are some of the most common auto financing scams that are
utilized by some car dealers. Always keep these in mind if you
are going to buy a car. If you or a friend were treated fairly
by a dealer in the past, consider using the same dealership
again. It's a good indication that they do care about their
customers and aren't just looking for a "fast buck."

Think very carefully and do not buy on impulse. Good luck to
you and go get that car!


About The Author: Gregory Ashton, your resident automobile
enthusiast, bringing to you over 20 years of vehicular passion,
and expertise; presents for your approval his insider secrets on
selecting, buying, and maintianing the car that is ideal for
you. http://www.best-car-buying-tips.com