Car sales scams are common and many people end up getting ripped off. Selling vehicles is a highly profitable enterprise. A car salesman is paid highly for just that reason. As the saying goes, if someone can sell a car, they can sell anything. Usually the prospective buyer is not told the true value of a car; as the manufacturers are very much aware, there is always a markup. They definitely do not want you to know this bit of information. How do you avoid getting ripped off?
The following is some advice to consider:
1. Buy a car during the off season, such as during Christmas time. Since most people are otherwise occupied with Christmas shopping, you may be able to negotiate a better deal. You will find great deals from July to October, as dealerships are attempting to sell off their old inventory to make way for the next years models.
2. Research the vehicles that you are interested in online, print out the information, and take it to the seller. To help you find rebates and other incentives, it is wise to sign up for their newsletters. One website that is an excellent source for information is FightingChance.com.
3. Bring your credit information with you if you want to have your car financed. It is available to you online through Equifax.com.
4. If you still owe money on a car, you should not trade it in because you will still be responsible for the late fees if the dealer does not pay it off in a timely manner. It is a good idea to get all agreements in writing so that if you need to refer to them at a later date, you have them.
5. Never shop for a car when you are desperate because it is more likely that you will be taken advantage of. Take someone with you to help you who has some experience in purchasing a used car.
6. If the car is not in stock, leave a deposit of no more than $500 and use a credit card to pay for it. The advantage of doing it that way is that you can file a dispute if the dealer tries to change the price for any reason.
7. You absolutely do not have to purchase an extended warranty to be eligible for a car loan. It is definitely not necessary for loan approval. The extended warranty will be handled by someone from another company. If you decide to purchase the extended warranty, be sure to read the contract carefully since a number of things may not be covered. Before you go to the dealer, obtain quotes on extended warranties at warrantydirect.com.
8. Don’t purchase any extra accessories. If you purchase any accessories from the dealer, you will end up paying dearly for them. This will include many different things like: rust proofing, scotch guard, car alarm, paint sealant, detailing and pin striping, credit / insurance costs, extended warranty, etc.
9. Don’t let them talk you into the window etching scam. The seller may tell you that the banks require it, but they do not. This is not the truth. Caretch.com sells car etch kits at very low prices.
10. Do not let them box you in. Sometimes you may have more than one sales person trying to convince you to make a purchase in very obnoxious ways. Do not be bullied by the sales people, and if they do bully you, threaten to leave and then do so if they continue.
11. Take your time to understand the offer. Salesmen or managers may try to gloss over some of the details or rush through the information in order to confuse you. Insist that they stop pressuring you and take all the time you need to think it through. Do not be afraid to walk out if they are not cooperative.
12. You are not required to fill out a credit application if you are paying cash for the car. No company policy can require that you fill out a credit application if you do not need a loan, nor is there a law that requires it. There are no laws that require someone to fill out a credit application when buying the car for cash.
These tips should help you avoid finding yourself in a used car scam and getting ripped off.