When car buying started happening on any scale, car buying scams quickly emerged. Today, the modern motorist or aspiring motorist has to be diligent and cautious of the many scams endemic to trading in automobiles on the private and commercial level.Â
Car buying scams take many, many forms. Some are committed by dealerships, as either yo-yo financing scams or bait-and-switch schemes where the car you want is no longer there, or covering cosmetic or mechanical damage.
Private buying can be even more fraught with peril, with car-buying scams ranging from fraudulent advertising to false car scams that lure people into a robbery.Â
Watch this space to learn about car scams as they emerge in the news. See below:
Car Title Delay Scam: How It Works This scam occurs when the dealer delays paying off your car because of their floor plan. A floor plan is a credit line for dealerships to buy vehicles. It allows them to go to auctions and buy their inventory without paying for it up front. This is […]
Car Transport Companies Scam: How It Works Imagine this scenario: You consider buying a car – or a motorcycle – from a different state but you can't go pick it up. You wonder how much does it cost to ship a car to your city, so you decide to look online for top rated […]
Car Dealership Add-ons Scam: How It Works Many car dealerships use deceptive practices to pull in clients and rip them off using specific techniques that are borderline illegal. Of course, not all dealerships are the same, but we are referring to the ones that don't hesitate to take advantage of consumers‘ lack of industry knowledge. […]
How the scam works: (with video below) While you are showing off your new car to your friends, the dealer calls you with some “good news”, saying that they are now able to lower your monthly payments. All you need to do is go back to re-sign the contract. Great, right? Of course it is! […]
Dealership Preparation Fee Scam: How It Works (with video below) Let's say you just bought a vehicle. At the dealership, the agent who helps you with the paperwork seems like a nice guy. However, besides encouraging the unnecessary add-ons (‘underneath paint sealant', ‘seats fabric sprayed with protective silicon', ‘rust-proof spraying'), he also adds a “Dealership Preparation Fee” […]
How the scam works: (with video below) Never call a dealership asking if they have a certain car, model, color, along with any other preferred add-ons. Why not? They will tell you they do have it. However, once you get there, don't be surprised if they say the car was just sold but they have […]
Factory Holdback Scam: How It Works (with videos below) “Holdback” is a bonus of 2-3% of the MSRP (Manufacturer Suggested Retail Price) that factories pay dealerships every time a car is bought straight from the factory. Dealers know that few clients are aware of this so they add an extra fee to your receipt, using […]
How the scam works: Crooks know that when it comes to cars, buyers look for deals locally first as the vehicles are easier to verify. With that in mind, after posting a fraudulent ad and making first contact, the scammer gains the buyer's trust by mentioning a few local streets and neighborhoods (the result of […]
Credit Score At Dealership Scam: How It Works (with video below) Are you considering purchasing a new car? When you buy a new car you have to go through a credit score check at every dealership, unless you pay cash. Because 9 out of 10 people don't know their credit score, they just rely on […]
Yo-Yo Scam: How It Works Your car loan interest rate is the subject of the latest scheme at many car dealerships today: the Yo-Yo Scam aka Yo-Yo Financing. The “yo-yo” term comes from the actual toy, because the client who purchases the vehicle is pulled back to the dealership against his will – just like […]
How The Scam Works: (with video below) Buying a vehicle is the second most expensive purchase that one makes in a lifetime, after a house. Commissions are big, and so are the efforts in making the sale happen. Beware of the Forced Credit Application trick that you may become the victim of at any car […]
Forced Warranty Scam: How It Works (with video below) You find yourself at a car dealership. Your future car is picked out and it's just a matter of financing. The dealer is working on the paperwork. They are friendly, ask you what you do for a living, and make small talk about your family. Off-handedly […]
Bounced Check Scam: How To Avoid Let's say you're buying a car from a dealership. You have decided on the vehicle that you would like to purchase. You are ready. As a form of payment, you want to use a bank draft or a check, but the dealer tells you they can't take it. It is just […]
Replica Cars For Sale Fraud: How It Works (with video below) You've always wanted a high-end car model car, whether that's a Ferrari, Lamborghini, Jaguar or Rolls-Royce. Let's stick with the Ferrari for now, for the sake of explaining the Replica Cars for Sale Scam. Maybe buying a kit car is not your thing, […]
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