5 Auto Scams You Absolutely Must Avoid!

People hate car dealers. Of course, there are always nice guys,

but many car dealers just have to cheat their way to profits.

Here are the top 5 auto scams that you absolutely must avoid,

or risk paying way too much for your car.





Scam 1: The Yo-Yo Financing Scam

The dealer sells you a car and allows you to take it home

immediately. You finance your car through the dealer, but a few

days later, the dealer calls and tells you that your financing

has fallen through. You are then told to set up new financing

through the dealer, at a much higher cost to you, and a much

higher profit to them. Avoid this at all costs! If you have bad

credit, don't finance at the dealer. Arrange your own financing.

If you finance through the dealer, never drive off your car

immediately. You should wait at least 24 hours before taking

your new car, so as to make sure financing is complete. This

allows the dealer no way to play the scam on you.





Scam 2: The Window Etching Fee

This is one of the most ridiculous but common scams I've heard

off. Basically the dealer offers to window etch your VIN number

in the window of your car for you, at a price ranging from $300

to $1000. Some people have tried to talk down the price, and

they often succeed, but the dealer still makes a few hundreds

off you. The easiest way to solve this problem? Just purchase a

do it yourself window etching kit at any decent auto parts

store. It only costs $20.





Scam 3: The Dealer Preparation Fee

The dealer charges you a preparation fee to prepare your car.

Some often charge an outrageous $500 or more just to peel off

the plastic protection on the car, test drive the car and put

in the fuses. Most MSRP stickers indicate that these costs have

already been covered by the manufacturer. In fact, some car

dealers permanently print it on the buyer's order to make it

seem mandatory, but one way you can get it removed is by

telling the dealer to add a credit (of the same amount as the

dealer preparation fees) on the next line. If they refuse to do

so, you should simply walk out of the dealership.





Scam 4: The Market Adjustment Fee

In this scam, the dealer tells you that your car is a really

popular vehicle, and so to sell you the vehicle they have to

add "Market Adjustment Fees" of several thousand dollars. This

amount is usually indicated on an orange sticker next to

manufacturer's MSRP sticker. A car may be popular, but if it is

in stock, it is not worth paying extra for it. Many buyers,

especially trade-in buyers, have been ripped off before. They

focus only on what they get for their old car, and so they

don't see the big picture. They may get an extra few thousand

for their car, but they don't notice that they are charged a

much higher Market Adjustment Fee. The dealer sells the car,

gets the trade-in, and makes an extra off the buyer. Never pay

more than the manufacturer's MSRP.





Scam 5: The Extended Warranty Scam

The Extended Warranty scam is quite old but it is still in use.

And many people still do fall for it. Basically, when you take a

loan on your car, the dealer will say that you have to purchase

an extended warranty because the bank requires it for the loan.

Avoiding this scam is very simple actually. Tell the dealer to

write down in black and white that the extended warranty is

required for the loan and they'll most probably find some

excuse to remove the extended warranty. If they refuse to do

so, then please do not buy from that dealership. Actually, the

extended warranty is a great thing to have, but don't ever get

it from the dealer. You can get far better deals elsewhere,

especially online.Don't get ripped off by car dealers!Pete Lance is the founder of

http://www.USGasTracker.org, a premier company which helps the

consumer save money on gasoline. Thousands of gas stations

across the nation are tracked daily to guarantee the lowest

prices on gasoline for any zip code in the United States.

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