01greygt
April 8th, 2010, 09:14 PM
http://www.carsforgirls.com/index.php/the-always-and-never-of-common-dealership-scams/
Scam: Your credit disqualifies you for the best rate
Dealerships often tell you that your credit isn’t good enough to qualify you for a great interest rate. Why, you might ask? Higher interest rates generate more revenue for them. To avoid this scam: Always get your credit report from at least one of the three bureaus. You can access them free once a year at www.annualcreditreport.co m. Never agree to a higher rate than you’re comfortable with.
Scam: 0% financing
Although some may offer legit 0% financing, the majority come with strings attached. In most instances, they have to make up for lost revenue when offering no interest financing, which means they’ll force you to pay MSRP to qualify for the promotion. To avoid this scam: Always read the details and fine print of the financing offer before you sign anything. Never agree to or sign the contract if you haven’t shopped around for third party financing for comparison.
Scam: Packing the Contract
Dealerships often throw “add-ons” into their contracts without your knowledge. These might include service contracts, warranties or accessories and can sometimes tack on thousands of dollars to your cost. To avoid this scam: Always review your contact carefully before signing. Although tedious, it’s wise to read all fine print. Never sign the contract until the “add-ons” have been removed and the extra cost is eliminated.
Scam: Trade-in Fraud
Most consumers don’t notice this scam until it’s too late. Dealerships often say they’ll give you more for your trade in, however they simply raise the sale price of the new car. Their other trick is low balling you on what they’ll give you for your trade in. To avoid this scam: Always know what your trade in is worth. Check KBB or NADA to verify the market value. Never let the sales person bully you into believing that your trade in has noises and problems it doesn’t.
Scam: Puppy Dog Trick
This is a common, yet tricky scam. Not only is the dealership offering to let you take the car home for the night to “test it out” so you’ll fall in love with it, but they may also slide in paper work they claim won’t be processed until you come back the next day. To avoid this scam: Always remember the saying “don’t take it home until you buy it”. The last thing you want to hear it they’ve already processed the paperwork while you were at home. Never sign the contract or any paperwork until you’re 100% sure it’s the car for you.
Scam: Low Balling
Sales people will do everything they can to convince you that they’re offering you the lowest price they possibly can, and that it’s only available for that one day. To avoid this scam: Always continue negotiating the sale price of the vehicle. Never let the sales person convince you that the price they’re offering is the best you’ll be able to get anywhere or that they’re losing money by offering you a certain price.
Scam: Your credit disqualifies you for the best rate
Dealerships often tell you that your credit isn’t good enough to qualify you for a great interest rate. Why, you might ask? Higher interest rates generate more revenue for them. To avoid this scam: Always get your credit report from at least one of the three bureaus. You can access them free once a year at www.annualcreditreport.co m. Never agree to a higher rate than you’re comfortable with.
Scam: 0% financing
Although some may offer legit 0% financing, the majority come with strings attached. In most instances, they have to make up for lost revenue when offering no interest financing, which means they’ll force you to pay MSRP to qualify for the promotion. To avoid this scam: Always read the details and fine print of the financing offer before you sign anything. Never agree to or sign the contract if you haven’t shopped around for third party financing for comparison.
Scam: Packing the Contract
Dealerships often throw “add-ons” into their contracts without your knowledge. These might include service contracts, warranties or accessories and can sometimes tack on thousands of dollars to your cost. To avoid this scam: Always review your contact carefully before signing. Although tedious, it’s wise to read all fine print. Never sign the contract until the “add-ons” have been removed and the extra cost is eliminated.
Scam: Trade-in Fraud
Most consumers don’t notice this scam until it’s too late. Dealerships often say they’ll give you more for your trade in, however they simply raise the sale price of the new car. Their other trick is low balling you on what they’ll give you for your trade in. To avoid this scam: Always know what your trade in is worth. Check KBB or NADA to verify the market value. Never let the sales person bully you into believing that your trade in has noises and problems it doesn’t.
Scam: Puppy Dog Trick
This is a common, yet tricky scam. Not only is the dealership offering to let you take the car home for the night to “test it out” so you’ll fall in love with it, but they may also slide in paper work they claim won’t be processed until you come back the next day. To avoid this scam: Always remember the saying “don’t take it home until you buy it”. The last thing you want to hear it they’ve already processed the paperwork while you were at home. Never sign the contract or any paperwork until you’re 100% sure it’s the car for you.
Scam: Low Balling
Sales people will do everything they can to convince you that they’re offering you the lowest price they possibly can, and that it’s only available for that one day. To avoid this scam: Always continue negotiating the sale price of the vehicle. Never let the sales person convince you that the price they’re offering is the best you’ll be able to get anywhere or that they’re losing money by offering you a certain price.