3 Scams To Be Aware Of Before Buying A Car
Ready to buy that car? If you're not armed to the teeth before going into the dealership, you may get burned.
Here's 3 common scams that a shady dealer might try to pull before buying a car...
1. The Used Car Sold "As Is" Scam
This is when a dealership will sell you a car that has been in a car wreck, but they will tell you that the car has been completely refurbished.
When you see the car it has a sticker on it that says "as is" on it and no warranty is included with your purchase. This is the dealer's way of telling you that you can't bring the car back, you are assuming all risks for the car, and that it is not under warranty. To avoid this scam, don't buy a car without a warranty or one that says "as is" on it. By doing this, you might as well buy a car from a stranger on the street with the same deal. 2. The Bounced Check Scam
This is when you walk into a dealership with a bank draft and the dealership says that they can't accept your draft because your bank bounces checks too often. Of course, this leaves the table open for them to get the extra money they want by offering to sell you a car at a higher interest rate. You can avoid this scam first by getting your drafts from an online auto financier like Capital One or Eloan. Then let the finance manager know that you are aware of the scam that they are pulling and thatyour chosen auto finance company is in the business of giving loans so the checks don't bounce. 3. The Forced Credit Application
If you are hoping to pay for a car outright or in cash with a bank draft or check, watch out. Some dealerships will not let you. You will hear one of these lines so that they can try and get you into paying monthly terms for more money. "State laws require that you must fill out a credit application before I can sell you this car." "Everyone that buys a car from us fills out a credit application first." "It's the company's policy". If you hear any of these lies, then know what's going on. When you are paying cash why would you think that you need to fill out a credit application? It doesn't make sense. No state will force you to apply for credit when paying cash. Would you have to fill out a credit report if you want to buy a sofa or groceries while paying cash? See how silly this is. To avoid this scam, just laugh in their faces. And if you see any of these tactics used by a car dealer, run--don't walk--to get out of there.
Buying A Car
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