Auto Dealer Scams - Avoid To Save Thousands!

Even if you believe you've negotiated a great price on the car, many auto dealer scams come into play once it's time to talk about the financing. The potential for being scammed at the finance office of the dealership is tremendous, if you are not aware of how they "operate". And if you are mixing a trade-in with a new car purchase, you could lose the maximum amount of money possible.

If you must finance, it's wise to arrange your loan through a credit union or bank BEOFRE you sep into a dealerlship, or onto a used car lot. Even then, dealers often try to trick you into filling out the credit app, so they can run your credit through local banks. This is an attempt to lead you into the dealer's financing, which always results in more commission. To avoid this scam: NEVER FINANCE AT THE DEALER. This is especially true if you have bad credit. Financing scams are routinely pulled on people with good credit too. Unfortunately, this works well for the dealers because most people simply do not know their own credit score.

A common financing ploy is to spread out the loan over more months, which lowers the monthly payment, tricking you into thinking you are saving money when you're actually getting ripped off, while putting more money i n their pockets.

Keep in mind that auto dealers offer special money making incentives to their salespersons for the "deals" they make. Because the adage "knowldge is power" works both ways, the less you say in front of the salesperson the better. Never tell the salesperson that you can afford a payment of $xyz a month. No salesperson should know more about your credit history than you. And you should know all about yours BEFORE you walk onto the lot.

For new and used vehicles, one of the huge moneymakers of all time for car dealers is the ability to sell extended warranties. Purchasing warranties from the dealer could cost you twice as much as purchasing it yourself. Also remember that dealers make money from add-ons and extras, so view with skepticism any offers of "free" items -- noting is "free".

Finally, on used vehicles, a check on a car's history before you finalize the purchase can end up saving you a lot of heartache and money. If any doubts arise, definitely take it to a trusted mechanic and pay to have it checked out. There are also nationwide independent services that will do this for a fee.

Getting a few tips on the techniques of car buying could prove to be very useful to avoid auto dealer scams. If you're not prepared for what can happen at each step of the car buying process a salesperson will use every trick in the book to separate you from your money. Purchase a good anti-scam guide. It will give you tips on getting a competitive buying price, spotting salesperson's scams, financing your vehicle and negotiating the opening price. It will show you how to avoid scams by showing you what to do before you visit the dealer and what to do during your visit to the dealer. This can save you thousands of dollars and prevent remorse and heartache.