SolveYourProblem
eLearning Series: Buying A Car
How Do I Buy a Car
Without Getting Ripped Off?
( 17 pages )
13
Devious Car Sales Scams
9. Factory
Holdback scam
Dealerships depend on a buyer’s
ignorance so that they can mark up your prices. Holdback
is money paid to the dealer for about 2-3% of MSRP.
It
is money that is given to the dealer from the factory when
the car is sold. This is profit for the dealer for buying
the car.
Most
dealers will tell you that it costs them money so that
they can charge you for it later. Basically, they can get
the money twice.
Avoid
this by letting the dealer know that you know better and
will not pay it.
10. Insurance
scam
This is when the dealership tells you
that you must get your insurance from them or a company
that they work with if you want to avoid paying higher
interest rates.
This
scam also applies to the dealership forcing you to pay
life insurance or extended warranties due to “bad credit.”
Avoid
this by leaving. What they are doing is wrong.
11. Turnover
scam
This is when the dealership sends over
many different salespeople hoping to wear you down and
get you to hurry up and buy. This is also called harassment.
Avoid
this by threatening to leave if they don’t stop it.
12. Hidden
rebates
This is when the dealership advertises
that the price of the car is lower than the MSRP.
What
you don’t realize is that the fine print says that the
prices include rebates. All this means is that the rebate
that you were offered doesn’t exist because it was already
calculated in the ad.
Avoid
this by ignoring it or requesting it in writing that states
the rebate is in addition to the price of the car.
13. Deposit
scam
This is when the finance manager insists
on a deposit before you have signed the purchase contract.
You
will be told that the finance manager has to bring in a
copy of the contract offer to his boss and he needs a deposit
from you just to ensure that the boss will sign off on
it.
It’s
just to make sure that you are “serious” about getting
the car.
Avoid
this by refusing to give a deposit before the contract
is finished a signed by both parties.
Dealers
run this scam so that they can keep you there. Tell them
that the fact that you made an offer on the car shows that
you are serious.
 
> Home > Buy
a Car Main Page
|
