There are some tricks of the trade that car salespeople use just to make sure that you drive off their lot with a car, whether you need it or not. We’ve put together a list of some well known car buying scams that we’ve come across to help you recognize when it happens to you!
Selling You Something You Can’t Afford
Showroom managers can be very sneaky. They won’t outrightly sell you something that you can’t afford, but they will inch you towards agreeing to it. Perhaps they might hold your identification or ask you to write a check so they can ask they superiors for approval. Chances are that they won’t be able to give you the rate that you want, but because your hopes are dashed, you might just settle for “the best terms” that they have to offer you at that point. Worse still, they might let you drive home the car and start using it and then call you back to tell you that “the bank” wasn’t able to give you the rate that you wanted!
Inflating your Interest Rate
When you purchase a car and look at car financing at the showroom, chances are that the rates they quote you aren’t the actual rates that banks and lenders offer! Because some dealers can make a profit off of the financing rate, they may mark up the rate so that the business earns 2-3% too! People just tend to assume that because they submitted their identification and credit documents that the quoted rate just has to be what’s available. Sadly, that’s not always true.
Selling you a Dud
Again, it’s hard not to take the salesperson’s words at face value, but sometimes, customers can make the mistake of not asking for more details about the car that they’re going to buy. Especially if it’s a used car, the previous accident or maintenance history might not be disclosed to you. It might not even entirely be the fault of your dealership sometimes, but it’s a real and true story that your car might not be as good and pristine as you imagined it to be!
Trying Their Luck
Some dealers might play such a simple game with you that you just not see it for a scam at all and that’s selling you a car knowing full well that you will need to go into negotiations to get the price that suits your situation. That means quoting you a ridiculous price and never disclosing their bottom line. Why they do this is because there actually might be that one in a million customer that walks in through the door that doesn’t want to bargain, accepts the first offer for its face value and gives the salesperson a closed deal based on that first figure! Unbelievable? But true…
There are quite a lot of things that you can do when you encounter situations like these so that you don’t get scammed. Make sure that you have all your facts and don’t get pressurised into making decisions when you’re not ready. Take the time you need to feel absolutely confident about the car you want to buy! Find out about financing rates, how much you can really afford and your car’s history too. Here’s wishing you all the best in your search!