Anyone shopping for a car, whether new or used, wants to get the best deal and best value that they can. For this reason, it is important that you know how to avoid car dealer fraud and dealership scams. Even the most well informed car buyer can be deceived by the tactics used at many car dealerships. After reading our tips on how to avoid car dealer fraud, you will know what to expect and how to negotiate a better deal from the sales staff.
Do Some Research
Don't be vague. Know which make and model that you are most interested in. Find out as much as you can about your car of interest including:
Pricing - Shop around for the best price. Always find out the sticker price, including any options and packages you want added. This will help you know how low the salesman will go. Make an offer and DO NOT back down. Remember, the salesman wants to sell you the car.
Cost of Ownership - Don't end up buying a car that you can't afford to drive. Check out the costs of Maintenance, Gas Mileage, Sales Tax, Depreciation, etc. You never know what your car costs you until you have bought it, owned it for awhile, and sold or traded it.
Don't Buy Based on Monthly Payments
Another way to know how to avoid car dealer fraud is to be observant of loaded questions. "How much can you afford to pay each month?" This is usually one of the first questions that a salesman will ask. Do not let the dealer handle your financing. This is an area where dealers can manipulate the numbers and make quite a bit of money at your expense. Always try to have a pre-approved loan before you go into the dealership.
Know When to Walk Away
Knowing how to avoid car dealer fraud may result in simply not making the deal. Remember, there will always be other cars, other dealers, other offers. So, if you do not like the deal, or you need to think things over, you can just politely excuse yourself and leave. A car is a sizable investment, make it wisely.
