There’s That Mustang

Purchasing a new automobile can be a stressful pass time, especially with the added pressure of pushy car salesmen. It is common knowledge that you can negotiate down the price of any vehicle at a dealership, but there are many scams out there that are not so well known and are designed to separate you from your hard earned money. I have listed 6 of these scam below for you to be aware of next time you go and buy a new car.

1. The VIN# Scam involves the dealer trying to charge you for having the VIN# etched on the window, citing that it is required by the finance company. This is total rubbish. Lenders are only concerned with your ability to pay the instalments.

2. “Subject to loan approval” is a common phrase on car loans. Some dodgy car dealers will try to scam you by mentioning this phrase, with a view to squeezing more money out of you. They can charge finance fees of $1000 up and and added $50 to you payments if you have a bad credit score. Those with good credit needn’t worry so much. The best thing to do to avoid this scam is to get a loan from a bank instead.

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. Another good scam that you may have seen is the dealer prep scam. This is an extra $500 that seems to appear on your contract to compensate the dealer for that hasn’t been done because the car arrives in the dealership ready to be driven off the car lot to a prospective buyer. Try and avoid paying this if you can otherwise find a dealer that will knock off this ridiculous charge.

6. Yet another phoney fee is the ‘dealer mark-up fee’ that is invented just to increase the car dealer’s profit margin. This is charged for no reason other than greed. This fee can be seen on the orange sticker marked on the manufacturer’s suggested retail price (MSRP).

These are just 6 of the many scams that can surface from time to time when you are attempting to purchase a new car. Although these scams do go on, there are many trustworthy car dealerships with integrity that can and will sale you a car for the right amount of money and without trying to rip you off. The trick is to find that dealership. Good luck!