How to Avoid New Car Dealer Scams

Receiving the most complaints of any consumer industry in 2009, new car dealerships are ripe for scams. Over 50,000 complaints were filed against car dealers that year. Car dealerships have come up with the most sensational ideas to steal money from unsuspecting buyers. The industry's penchant for deception is one customers must be aware of before coming onto any lot and making a purchase. Avoiding these scams requires some close examination and attentiveness while shopping for a new vehicle.

Instructions

1

Make sure to talk to only one auto professional at the dealership. Many dealerships shuffle customers around to talk to different people, with each providing inconsistent or confusing information. This is usually indicative of a scam and that something is not right. Choose one representative and speak to him only during your entire stay.

2

Know which car you are interested in before coming to the lot. Car salesman are quick to take advantage of people unsure about what they want to purchase. They will attempt to persuade you into purchasing a car before you leave, promising "special" one-time offers, on-the-spot delivery and other sweet deals. Do not allow yourself to be fooled or bullied into buying a vehicle if you do not want to. Leave if the dealer cannot provide you with the car you want at a suitable price.

3

Be wary of car dealers who advertise a certain model in the paper loaded with extra add-ons, but only have the base model on the lot. Dealers will lie to you that you saw something different and that the base model available is the actual one from the advertisement. They will try convincing you that their model is as good as any other model when it is not. Avoid this scam by simply walking away when you discover it.

4

Avoid salespeople who use crafty one-liners such as, "The websites you get the prices from are wrong" and "What will it take to make you sign today?" Reconsider purchasing a vehicle from the dealership if you hear many one-liners from a salesperson. If the information he gives you seems inconsistent or suspicious, do not buy a car.

5

Do not sign for any car loans at a dealership. These "loans" are actually known as Retail Installment Sales Contracts in the auto industry. After you sign a RISC, the dealer then sells it to a bank or other lender as a contract markup. Occasionally they will even participate in the interest rate, which will hike the APR rate they charge you and take more money from your wallet. Secure your own financing if the dealer cannot give you a better APR.