Deferred Payment: Car Loan Scam – How It Works
Beware of one scary trick that some questionable car dealers pull occasionally: the Defer Car Payment Scam. Let’s see. You come across an advertisement that says the car dealership down the street has a “No payments for 12 months” promo. Your income is a little unpredictable right now, but you have a few prospects so it would be perfect. You pick up the beautiful vehicle, drive test it, sign the papers and off you go.
After a few weeks, you receive a letter from the dealership saying the first payment is due. Calling immediately to dispute the letter, they say the promotion was only available for the week previous. You recheck the ad and there are no dates, so there is no way of holding them to it.
Watch the video below to see more scams pulled by dealers and things to check for when buying a car:
Defer Car Payment Scam: How To Avoid
Indeed, there are legitimate “specials” like this in several dealerships, but be aware of the shady ones. Always ask the dealership to add in the contract “No payments due until…” Verbal agreements for any postponed payments are not enough.
Defer Car Payment Scam: How To Report
Make your family and friends aware of the Defer Car Payment Scam by sharing it on social media. You can also officially report the questionable auto dealerships to the Federal Trade Commission using the link below:Report To The FTC Here
How To Protect Yourself More
If you want to be the first to find out the most notorious scams every week, feel free to subscribe to the Scam Detector newsletter here. You’ll receive periodic emails – we promise not to spam. Meanwhile, educate yourself with some other fraud-related articles right under this paragraph, so you can protect yourself in many other aspects and niches. Last but not least, use the Comments section below to expose other scammers.
Here are some must-reads for the end:
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