SolveYourProblem eLearning Series:
How Do I Buy a Car
Without Getting Ripped Off?
( 17 pages )

Even More 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.

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