Buying a New Car? Watch Out for Scams

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. 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. Another fake fee is the 'dealer mark-up'. This has no purpose other than to increase profits. You can usually see this fee on an orange sticker attached to the manufacturer's suggested retail price.

As common as these scams are, there are also quite a few reputable dealerships out there. Dealerships that will give you a good service and sell you a car at a fair price. You just have to look carefully for them.

Article Source: http://www.myaddirectory.com

Roberto Beiro has collected together many other great car articles at his website. He is also the author of many original articles like tips on buying a used car.

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