Fraud and Scam Alerts
At Client First we keep a vigilant and dedicated watch for scams and frauds You as our readers and or clients will want to watch out for.
These Scam and Fraud Alerts will keep the consumer informed as to the
nature and tell tale signs of many Scams and Frauds.
Car Salesmen Scams
There are those who have been asking us to do a report on car dealership and car sales scams, so we thought we would release this information . Most individuals are familiar with the hard-sell tactics often used in the automotive sales industry, but what follows is a closer look at some of the lesser known scams and a few simple methods our readers can use to counter them. We’ll cover the top three most prevalent scams automotive dealers try to profit from. Hopefully, armed with this information, you can save anywhere from a couple hundred dollars to several hundred dollars.
The VIN# Window Etching Scam
Some dealerships charge their customers $200-$300 dollars to etch the vehicle’s VIN# into the window of the car. Some dealerships say that the etching is free, but put an extra charge into the monthly payment. They will try explaining that the bank or loan lender requires it. This is completely false. Banks and lenders don’t require consumers to purchase ANY extras on their cars. All the lenders care about is that their borrowers pay their regular payments. You can purchase etching kits for this exact purpose for around $30. An easy way to counter any demands that this is required is to just not purchase the vehicle.
The Low Credit Score Scam
It is surprising how ridiculous this is and yet how common it is. The finance manager concernedly explains that your credit score is lower than it actually is. This way, they can have you sign for higher interest rates. Before you even go in to the dealer, get a credit report, preferably from FTC authorized annualcreditreport.com. Bring your report along with you when you go to the dealer and be prepared to walk away if they refuse to take note of it.
The Forced Warranty Scam
Occasionally the finance manager you are negotiating with will attempt to convince you that the bank will not approve any loan unless you purchase an overly expensive 2-3 year extended warranty on the vehicle. If we think about this logically, this scam becomes absurd. What the finance manager is basically saying is that the bank doesn’t trust you to pay back your $20,000 loan, but they WILL trust you to pay back even MORE money. There is absolutely NO reason why a bank or loan official would ever require this.
The Bottom Line
These scams are unethical and rely on misrepresentation or outright lying in order for them to work. Remember that these are rarely bargaining points. If a dealership is going to try to scam you when they think you aren’t informed, don’t assume they won’t try to even if you are. Many of the sales and financing individuals sole responsibility is to generate more profit for his or her manager. Don’t be deceived by talk about honesty or ethics. Even the most ethical salesman makes a commission, and you can bet he’ll want that commission to be as generous as he can make it.
