How to : Avoid The USED CAR Scam
- 1). RED FLAG....RED FLAG!
Many car buyers are falling victim to the scams that caused many homeowners to start living in a tent. Most of the time, this used car scam is used on the poor or working class Americans whose biggest purchase (other than a home) will be a car.....used or new. - 2). Here's how it works. The dealer needlessly complicates and confuses the buyer unnecessarily which enables them to charge excessive prices and fees for the car AND the financing. Buyers with bad or marginal credit are the biggest victims in this "yo-yo" sales practice. In many cases, the dealer would send you off the lot with a smile and wave goodbye, then, days later, call you to say the financing couldn't be arranged at the original terms.
- 3). The consumer is told he/she must come back and sign NEW papers at a higher interest rate and other unfavorable terms. Should they try to cancel, the dealer tells them: NO WAY! Often the customer is in no position to refuse. These practices are troubling and may indicate criminal fraud so says the FTC, and they are pressing forward to put a stop to it.
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