SolveYourProblem
eLearning Series: Buying A Car
How Do I Buy a Car
Without Getting Ripped Off?
( 17 pages )
Top 10 Car Dealership
Scams
5.
The Dealer Prep Scam
Let
me first let you know that cost is not only legal but very
much common practice. I still refer to it as a scam because
it is just another way for you to end up paying more money
for the car.
Basically
the dealer will tell you have to an extra $500 to cover
the labor costs of the dealership’s 5-point inspection.
You
are paying for the time it took for the dealership to make
sure that the car wouldn’t explode on you in the first
week of owning it.
This
check up that you are paying so much money for is for the
dealership to remove plastic from the seats etc, vacuum
the car out, and making sure that all of the fuses and
fluids are ready to go.
When factories deliver the new cars to the dealerships the
cost of delivery and prep is already covered, so basically
you are paying the dealership for work that they haven’t
really done.
I
swear they could get the car in perfectly ready to drive
condition and put everything right back in it just so that
they can make you pay the fee again.
You
can avoid this scam by simply asking the dealership to
add an extra $500 credit to the deal to make sure you do
not have to pay the money.
If
they refuse, you can then decide if the car is worth the
money. If it is fine; buy the car, if not; go to another
dealer that will remove the dealer prep costs.
6.
The Dealer Mark up Scam
This
is an unnecessary fee that the dealer charges for no reason
other than greed. This fee can be seen on the orange sticker
marked on the manufacturer’s suggested retail price (MSRP).
The
additional dealer markup is nothing more than requiring
more money for no real reason. They can include all kinds
of extra fees in the additional dealer markup.
When
you see an extra dealer mark up fee, ask the dealer to
get rid of it. If they refuse, it is pretty much up to
you, but remember that if you do pay the extra dealer markup,
you are overpaying for no real reason.
7.
The Payoff Your Loan Scam
This
is when the dealer offers to pay off the balance of your
current car loan no matter how much money you still owe.
It is a common sales strategy.
When
the average buyer hears it, they think that by purchasing
a new car with a new dealership, they will automatically
owe no more money on their current car.
That
couldn’t be further from the truth.
What
really happens is that the dealership does help you get
out of your current contract; however, they normally are
forgetting to tell you how high your fees are going to
be for breaking the lease agreement with your old dealership.
You
will now be responsible to pay fees that are in the thousands
to make up for it.
You
also will not be able to refinance for a new car until
those fees are paid. Of course the dealership can add the
cost on to your contract with them at a substantially higher
rate.
The
dealership only agrees to this deal because they want to
get more money off of your current car. They aren’t really
doing anything for you at all.
The
dealership will also give you far less then the car is
worth on the trade off. Basically this scam works because
they will up your monthly fees, and then sell your trade
in for a more money than its worth.
The
dealership then extends your monthly payments so that they
can make it appear that you are paying a small amount monthly
when you don’t even realize that you have committed to
an extra year of payments.
To
avoid this scam, you have to bite the bullet and ride out
your current lease till the end. If you are really determined
to get a new car, then you should try selling your current
car on your own.
Just
sell it so that the buyer just takes over the lease payments.
 
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