4 Scams To Avoid When Buying A Car From An Auto Dealer
By Charles Hopkins
Published 11/28/2007 | Auto and Trucks
4 Auto Scams You Have Got To Avoid!
Let's face it, most people hate car dealers. As people, they may be
fun at a party or be good neighbors, but many car dealers will do
anything to improve the bottom line. Translation: Do whatever it takes
to make the most profit possible from every sale. If their techniques
are legal and ethical, there should be no problem with these tactics.
It's when the auto dealer borders on taking advantage of customers or
out and out cheating is where an objection should occur. Here are four
auto scams that you absolutely must avoid, or risk paying way too much
for your car.
Sneaky Trick 1: The Dealer Preparation Fee
Did you know that many of the Manufacturers Sticker Retail Price
(MSRP) actually shows that these so called dealer preparation costs
have already been covered by the manufacturer. There are dealers that
charge over 600 or more to test drive the car and peel off the plastic
protection on the car. A dirty little trick some dealers do is to print
permanently the prep fee on the buyers order to make it look like it
is mandatory. One way to combat this practice is to tell the dealer to
add a credit of the same amount as the dealer preparation fee on the
next line. If the dealer refuses, walk away.
Sneaky Trick 2: The Dealer Financing Scam
You absolutely must set up your own financing. Do not let the
dealer do this. What some unscrupulous dealers do is allow you to
finance through them. You then drive the car home. A few days later,
the dealer calls and tells you that your financing has fallen through.
He tells you that you must then set up a new plan and guess what? Yes,
the new plan will cost you more money. If for some reason you must go
through the dealer because your credit is somewhat suspect, wait until
the financing is complete before you drive the car off the lot. The
dealer cannot dump this scam on you if you use this tactic.
Sneaky Trick 3: The Extended Warranty Scam
There is nothing wrong with an extended warranty. Just do not allow
the dealer to do it. A search on the internet will reveal plenty of
offers that will be priced better that what the dealer will offer. The
scam goes like this. You take a loan on a car and the dealer will tell
you that you have to buy an extended warranty because the bank requires
it before they will approve the loan. You need to have the dealer show
you in black and white that the bank indeed does require an extended
warranty. In almost every case, the dealer will find some excuse and
remove this requirement.
Sneaky Trick 4: The Market Adjustment Fee
The dealer will tell you that because the car you chose is so
popular, they will have to add what they call a Market Adjustment
Fee, sometimes in the thousands of dollars. The fee is often placed as
a special sticker of the MSRP sticker. While the car may be popular, if
it is in stock, there is no reason why the dealer needs to charge you a
Market Adjustment Fee. Never pay more that the Manufacturers
Suggested Retail Price.
Be aware of these four scams when you shop for your next car and leave the dealership with a smile on your face.