Car Buying Scams To Be Aware Of
Do you feel nervous about buying a new car? If so, you’re not alone. Most people feel anxious about buying a new car because they’re afraid the salesperson will give them a bad deal. Car scams cost American consumers more than $30 billion annually. The sad thing is that most of these scams can be avoided if you know how to spot them. It doesn’t mean you should distrust all car salespeople. There are good ones out there who are honest and considerate. However, you must learn how to spot the various tricks used by shady salespeople. Even though they might act respectfully and have a smile on their face, they could still be up to no good. After extensive research into car scams, I’ve uncovered the most popular scams that are used quite often in the automobile industry. I’ve outlined them for you below. Window Stickers That Cause Confusion The Manufacturer’s Suggested Retail Price (MSRP) is the manufacturer’s price believes a car is worth. Car dealerships usually put an MSRP sticker on each vehicle they want to sell. If they’re honest, they will leave the sticker as-is without adding any other stickers next to it. But if they’re dishonest, they’ll add an even bigger sticker of their own near the MRSP. This sticker will have an inflated price that goes far beyond the manufacturer’s recommended price. The higher price includes a lot of upgrades and extra features that did not come from the manufacturer. Sometimes these are bonus upgrades for things that don’t even matter, such as fabric protection warranties. Look for advertising labels with acronyms like ADP or ADM. They stand for “Additional Dealer Markup” or “Additional Dealer Profit,” respectively. If you see these acronyms advertised on any vehicle, run away fast. Car Buying Scams To Be Aware Of Worthless Upgrades and Extra Features If a dealer doesn’t have an inflated listing price on a car, they might use another tactic to scam you. When you go into the salesperson’s office to sign the paperwork to purchase the vehicle, they will attempt to sell you add-ons or package deals. These deals might include things like rust-roofing, VIN etching, fabric protection, and paint protection. These features are unnecessary. Don’t waste your time and money on them. Decline all add-on offers. Holding Deposit If you’re interested in a particular model car in high demand, the car dealership might be willing to hold it for you. The stipulation is that you must pay a “holding” deposit if you want them to hold the car for you and not sell it to someone else. Do not take this deal unless the dealership agrees to refund the deposit after following through with the purchase. A holding deposit could also be made if the dealership is willing to perform a dealer trade for you as well. Car Buying Scams To Be Aware Of Camouflaging Visible Flaws on the Cars A car dealership could have a lot of scratched and scuffed vehicles. Even if the cars are new, they might have gotten marked up as they were delivered to the car dealership. If that happened, the salespeople might attempt to hide these flaws with stickers and other innovative methods. That is why you should inspect each car for flaws before deciding to purchase one of them. Cashing in Your Rebate It is common for car manufacturers to offer cash rebates to consumers who purchase specific model vehicles. Sadly, most consumers don’t even know about these rebates because car dealerships don’t tell them. Unless the consumers know about the rebates already, the car dealerships will cash-in the rebates themselves. How is this possible? Simple. Car manufacturers don’t usually audit the personal information of each consumer who purchases one of their vehicles. They leave that up to the dealerships. Unfortunately, a dishonest dealership will take advantage of consumers who are unaware of those cash rebates. If you want to avoid losing out on a rebate, ask your local car dealership to show you all the vehicles that have cash rebate offerings attached to them. Then you can know if the car you want to purchase has a cash rebate before buying it. Deceptive Negotiations When you negotiate with a car salesperson on a particular vehicle’s price, make sure they understand the exact vehicle you want to purchase. Sometimes the salesperson might think you’re talking about a different year on the model car you want to buy. For instance, if you are interested in purchasing a 2015 Ford Focus, the salesperson might be thinking about a 2016 Ford Focus. It could be an honest misunderstanding, or it could be deceptive. So, be clear with the salesperson from the beginning about the make, model, and year of the vehicle you want to purchase. The pressure to Purchase Used Rather Than New If you’re negotiating with a salesperson about a new car, they might try to persuade you to purchase a used car instead. If a particular used car is not selling and the dealership wants it off their lot, the salespeople will create incentives for consumers to purchase it. These could be bonus incentives, such as certified preowned or free oil changes. As the consumer, it might not necessarily be a bad thing. But you should never feel pressured to make a quick purchasing decision. If the salesperson tries to tell you their special deal is only available now, then do not purchase the car. A good salesperson will give you time to make the right choice for your own needs. Must Pay MSRP Price to Get Cash Rebate Manufacturers issue cash rebates to consumers who purchase their vehicles, regardless of the prices that are negotiated with the salespeople. The only problem is the salespeople will tell consumers that they must pay the MSRP prices to receive the cash rebates. That way, the consumers will end up paying more money to the dealerships. Don’t fall for this trick. If a car has a cash rebate available, you