Car Dealer Scams to Avoid

Regardless whether you would be dealing with a used car or a new car dealer, if you do not do your homework, you might end up with car dealers who are out to get all of your money. If you would like to keep yourself from falling victim to this kind of scam, then you might want to keep the a few things in mind.



There are five ways by which a car dealer can force you into making an uninformed purchase – by ambushing you, taking away your car keys, pressure, hidden charges, and good ‘ol bait and switch. Of these five, it is the hidden charge that is most prevalent. In this scam, a number of services are offered to you without even letting you know that you have to pay for it. This would include extra rustproofing, etching of the VIN, and cleaning of the car. Oftentimes, you also get to pay for add-ons that you did not actually order. In order to avoid this, make sure that you read through the contract or any invoice before putting down your signature. If you have questions about what is included in the invoice, do not be afraid to ask.



There are some car dealers who would also pressure you into getting a longer than necessary loan term. By stretching the loan schedule, they actually get you to pay more than what the car is originally worth. This is aside from the fact that, by the time you are through with the loan payment, your car’s value would probably have already depreciated. You have to keep in mind that your car payment should be no more than 12% to 15% of your monthly income after the taxes have been deducted.



There are also some unscrupulous new castle car dealerships that use the bait and switch tactic. What happens is that a better looking car with a number of add-ons at an affordable price is advertised by the dealer. Only when the people start coming in do they realize that the one on the advertisement is no longer available and what the dealer has is a lower version with very few add-ons.



Another tactic being played by some new castle used cars dealers is that they take your car key off your hand on the pretense of having it appraised or making it a collateral while you do a drive test. Remember, you would have problems walking out of the dealership if you do not have your own car keys with you.



Regardless of the shelbyville auto sales dealer that you go to, the best advice would still be, "Caveat Emptor!". Deal only with reputable car dealers in order to put your mind at ease.