Buying a new vehicle is already hard enough without a car salesman putting pressure on you while you are browsing. We all know that almost every car dealer can be negotiated down on the sale price of a car. The thing is that to watch out for the scams so that you can maximize your hard earned cash. In this article I am going to share a few sales tactics that you may want to be on the lookout for the next time you purchase a new car.
1. Some dealerships may try to scam you by charging you for having the VIN# etched on the windows, saying that it is a requirement by the loan compnay. It is not. Lenders will never ask you to add features you don't need. Their main concern is your ability to repay the loan.
2. This is a scam for those with poor credit. The are dealership that may quote the "subject to loan approval" phrase found in many loan proposals as a way to get as much as an extra $1000 and $50 per month out of you. A way to avoid this is to get you funding from a bank or other lender.
3. One scam that is common regardless of how good you credit score is, is funnily enough, the credit score scam. Dealer's will attempt to charge you a higher interest rate by saying your score is lower than it actually is. You can avoid this one by simply bringing your credit report along with you.
4. The warranty scam is one that involves the dealer selling you a $2000, 3 year warranty, saying that you need oit to qualify for financing. NOT TRUE. A car warranty is optional and hs no influence of getting a loan.
5. The dealer prep scam is another good one. It involves an adiitional $500 fee for doing basically nothing. Ther is no preparation as the car usually arrives at dealership ready to be purchased and driven straight of the lot. Avoid paying this or visit a dealership that does not charge this fee.
6. The 'dealer mark -up fee' is another scam. This fee does nothing but boost the dealers profit margin. Greed is the purpose of this fee, plain and simple.
These scams are common in the industry, but with that said, ther are many good dealerships out there that will sell you a car for a good price and make a fair profit for their work. You just have to search for them.
About the Author:
Roberto Beiro has put together many other great car articles at his website. He is also a writer of many original articles like tips on buying a used car.
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