How the scam works:
You decide to trade-in your car and are negotiating the price of a new one. The discussions are taking place in the dealer’s office and he draws a foursquare figure or uses a worksheet, adding the following categories: purchase price, monthly payments, down payment, and trade-in value.
This worksheet is used to manipulate you and find out which of the four areas are most important to you. He will make you feel like you are getting a great deal by lowering that particular figure, while in fact balancing the finances by increasing one of the other three. If you are not paying attention to all four you will end up where the dealer eventually wants you to be.
Watch the video below to see more scams pulled by dealers and things to check when buying a car:
How to avoid:
Let the dealer show you all they have to offer. Take the information, go home, and sleep on it. Analyze it the next day by looking at all angles. Negotiations should never end right away.
TOP 5 MUST-WATCH FRAUD PREVENTION VIDEOS
Educate yourself with the videos below: