Common Car Dealer Scams

Auto related consumer complaints rank among the highest among all the industries.  Enough to make even the hardcore auto enthusiast hesitate before buying a new or used car.  Being forewarned is to be forearmed.  Knowing the pitfalls and what to expect will prepare the buyer to avoid being accosted by false claims from salesmen and loan sharks and give him the confidence to make the intelligent choice. Here we present some common car dealer scams and tips how to avoid them.

The Quick Fix

The intelligent buyer decides what he wants in advance and asks the relevant questions to get answers to his satisfaction.  Salesmen want to hurry the buyer into closing a deal at the earliest and make all kinds of promises to secure the order.  His ammunition consists of one-time offers, haggling, and promises for on-the-spot delivery.  The customer should state what he wants and what kind of money he is willing to spend.  If they have what the customer wants, fine.  If not, there are other sellers.

Staying Guarded

When at a car dealer’s showroom, the buyer should try and stick to just one auto professional, instead of being shunted between different people.  The astute buyer is one that decides who would be the best person to provide him with the information he is seeking and only approach him.

car dealer scams

Car dealer scams to avoid

1. Advertising Gimmicks

Most car dealers make tall claims and promises with extras thrown in for good measure and display a great looking model to attract customers.  The customer is in for a surprise when he arrives at the showroom and is shown a lesser model and is coerced into buying it.  The smart customer should just walk away from such a trap.

2. The Hidden Bill

Prior to signing anything, the shrewd car buyer must ensure there are no hidden extras added to the final invoice.  He should read through the details to make sure the regular add ons like rust-proofing, extra-cleaning, alarms, fabric protection, etc are not being charged as extras.  The auto dealer will charge very steeply for doing the VIN (Vehicle Information Number) etching too.  It is far cheaper if the buyer gets a DIY kit and makes it at home.

3. Being held at ransom

The buyer needs to beware of auto professionals who ask for their current car keys to “test-drive” or use some such excuse to keep the buyer from escaping their sales pitch.

The surge in customer complaints against used-car dealers and their salesmen is on the rise.  Also, car sales volumes have dipped and are expected to decline over the next couple of years.  It is a daunting task for the dealers to ensure they get their customers to return.

The wise buyer should also seek his loan officer’s advice on how much he can prudently spend before buying a new car.

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