How to Avoid Used Car Sales Fraud

It's fun to own a new car, but brand new vehicles drop in value as soon as you drive them away from the car lot. You can get a much better bargain if you opt for a used car instead. Unfortunately you can also get taken for a lot of money because some used car dealers use fraudulent sales techniques. This can be prevented by educating yourself and knowing the most common tricks.

Instructions

1

Determine a fair price for the makes and models in which you are most interested, including common options. It is difficult for a used car dealer to defraud you on the cost of a car when you have done your research and know how much the vehicle is really worth. Start with Kelly Blue Book and then make a list of what dealerships and private sellers are asking for similar vehicles in their ads.

2

Get pre-approved financing from your own bank or credit union, Jeff Ostroff of carbuyingtips.com advises. Used car dealers often try to use the financing process to commit fraud by boosting your interest rate, which provides them with a kickback according to carinfo.com, or claiming you have bad credit and must pay more to put a warranty on the vehicle. They cannot try these tricks if you have a loan before you step onto the car lot.

3

Hire an independent mechanic to evaluate the used car's condition before you agree to purchase it. Do this even with a certified used vehicle, as the mechanics at a fraudulent dealership might not do a thorough inspection. Ostroff warns that some dealers will even try to sell previously wrecked autos as certified used cars. Refuse to buy the car if the dealer balks at letting you do this, as it probably means there is something to hide.

4

Ask the sales person or manager to put any promises in writing and refuse to complete the sale if he will not do so. A fraudulent dealer may make plenty of verbal promises, knowing they cannot be enforced. A reputable dealer will have no problem backing what he says by including it in the contract.