Car Dealer Scams

Q. How do you know when a car dealer is trying to scam you?

A. Their lips are moving

I know that's on old lawyer joke, but lots of people actually think that every word out of a car salesperson's mouth is a lie. Whether it's the spoken word or the printed one, there is a lot of blarney out there when it comes to trying to sell you a car. While there are lots of honest, hardworking salespeople who want to negotiate a win-win deal with you, you're likely to run across one or more of these scams on your journey towards finding that honest car dealer.

The Scam:

Nicely equipped for just $14,999

You see the newspaper ad and you can hardly wait to get to the lot. There, in black and white or living color is a picture of your dream car and it's just $14,999. NICELY EQUIPPED no less. Be still my beating heart!

I'll bet you thought that the "nicely equipped" part was the scam and you'd have to pay more for tires, seats and a steering wheel, right? Well you're wrong. Nicely Equipped usually means that the car comes with the basic expected equipment including automatic transmission, basic sound system, air conditioning, etc. No, the scam is this case is that little phrase which states: SN5-225 under the car's picture or below the sales copy.

That's the Stock Number (SN) scam. Sure, there was a nicely equipped dream car for $14,999 but, unfortunately, there was just one and it sold 11 seconds after the dealership opened for business. However, you are welcome to look at a very similarly equipped model for just a low $19,999.

Avoiding the Scam

Usually by the time you see the ad the car is already sold. The best way to avoid the scam is to not fall for it in the first place. Avoid doing business with dealers who run these types of ads and stick with the ones who offer competitive pricing on every model in their lot.

The Scam:

All credit applications will be accepted!

Hey, accepted doesn't mean approved. If you fill out a credit application, hand it to someone at the dealership, and they take it from your hand, that application has been accepted. Now, if they offer you a loan and you drive off the lot in a new car, then that application has been approved. There's a lot of fine lines and red tape between those two words, so be sure that you know the difference.

Avoiding the Scam

Dealer financing is rarely a good deal to begin with. The easiest way to avoid this scam is to see your bank or credit union for car financing before you even go shopping. That way there won't be any reason for you to have the dealer accept or approve you credit application.

The Scam:

Would you like fries with that?

There are a number of different scams that fall under the general heading of increasing the "leg" or "legroom" that a dealer has when negotiating a monthly payment. The scan usually starts with the question "How much of a monthly payment are you looking for?" Once the salesperson knows that, they can pack various options and unnecessary features into a base model until they magically come up with a car payment that matches what you wanted to pay.

Avoiding the Scam

Don't talk monthly payments. Simply tell the salesperson that you prefer to remain focused on the final price of the car and the payments are not an issue for him or her to worry about.

The Scam:

"Unhorsing"

You are offered the opportunity to take the car you are thinking about buying home for a night or the weekend. All you have to do is leave your current car with the dealer as "security" or so it can be "evaluated" for its trade-in worth. When you return to the dealership you discover that "whoops", your old car has already be taken in as a trade-in and sold. Now you have no choice but to buy that new car because you have nothing else to drive.

Avoiding the Scam

The easiest way is to avoid leaving your car. If they insist that you leave you car then pass on the opportunity to keep the car for a trial and walk out the door. A legitimate dealership doesn't need your old car as security, and you don;t need to work with an illegitimate one.

But wait, there's more...

There are hundreds of little "scamettes" and a lot more major scams then we have room for in this article. Car Dealer Scam Forum to learn more about Car Dealer Scams and How to Avoid Them.