Beware These Used Car Financing Scams

Buying a vehicle – used or new – can be nerve wracking; especially if you have no idea what to expect or look for. And unfortunately there are some dealers that prey on that type of customer. Here at Auto Credit Express, we want to keep you safe and help you get into reliable vehicles. Listed below we have just a few of the scams that used car dealers try to get away with when selling vehicles to unsuspecting consumers like yourself.

Used Car Scams to Avoid

beware used car financing scams

  • The Negative Equity Scam
    This is one of the more common scams that used car dealers pull. The dealer will promise to “pay off your trade-in no matter what you owe.” What they actually do is take the car in trade, pay the difference and then put the negative equity into the new loan. Now you are paying for the old car plus the new car. Now you have even more negative equity and not even people looking for military auto loans are immune.
  • Good Cop, Bad Cop
    With this scam your salesperson will try to play the sympathy card. Your salesperson will act as the “good cop” and management will be the “bad cop”. Your salesperson will suddenly be your best pal and put his “neck out on the line” to get the “best price he can” for you. Do not be fooled. If you’re not satisfied with the price, don’t accept it. The more you pay for the car, the more the salesperson makes. Don’t forget that.
  • After-Hours Scam
    After regular business hours, your vehicle cannot be finalized until the next business day. However, the dealer wants to sell you on the vehicle and not give you time to think about it. So they will send you home in the car. In a couple days, the dealer will call you back and say that your credit is not high enough and that they need more money, to raise the interest rate, or for you to return the vehicle. You’ll likely face charges for wear and tear or mileage when you return the vehicle. This is why you should have all of your financing agreements signed before driving off the lot in your new car.
  • Title Washing
    This is probably one of the more dangerous scams. Usually you will only find it in independent used car sellers, not new car dealerships or large used car lots. Title washing is the process of registering and re-registering a used vehicle with questionable history in multiple states to get rid of the car’s title of salvage status. So if the vehicle was wrecked, flooded or stolen, you’ll never know. To protect yourself, only purchase vehicles from a reputable dealer and brush up on ways to spot a flood damaged car.

Find the Right Dealers

If you need a vehicle now, you don’t want to fall into a scam that can cost you later. Just because you need an auto loan with bad credit doesn’t mean you should accept a bad deal. That’s why here at Auto Credit Express, we only partner with reliable and trustworthy dealers in the US and Canada. Use our easy online application and we’ll find dealer in your local area. Apply today and drive away tomorrow!

Posted on February 6, 2014 by in Uncategorized
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