Typical Car Dealer Scams

Car dealers are often portrayed as predators just waiting for an unsuspecting customer to come along.

This is because many people believe that they are always on the prowl for unsuspecting car buyers that are not very knowledgeable about cars.

This can be unfair because we can argue that there are car dealers out there who would not cheat just to get an extra profit.

How do you tell the difference?

To avoid becoming a victim of sneaky car dealers, look at the following auto financing scams.

Yoyo Scam

You will be allowed by the dealer to bring the car home as soon as possible. The dealer will take care of the financing, a few days later he will contact you again and tell you that there was a problem with your financing plan.

He will tell you to set up a new financing scheme through him which, of course, will be at a higher cost and this will also entail a very high profit on the dealer’s part.

Be wary of this trick and avoid it at all costs if you detect it. If you have a bad credit standing, don’t have your financing done by the dealer and make arrangements for your own financing.

If you ever do avail of the car dealer’s financing, you should never drive the car back to your home immediately. Wait for at least 24 hours just to make sure that the processing of your financing scheme has been completed already.

By allowing 1 whole day to pass by, you are assured that the dealer cannot use this scam on you.

Window Etching Trick

Window etching is a very common scam. What the dealer will do is to offer to etch the VIN number of your car onto the window of the car for a price.

Basically, the price ranges from as low as $300 to as high as $1,000. Some buyers think that they did a good job by being able to talk down the price to a few hundred dollars, but unfortunately for them, a few hundred dollars is still a good amount of money.

The best way to avoid this kind of scam is for you to buy an etching kit that you can do on your own. This is available in most auto shops and costs around $20. See how much they profit from you!

Dealer Preparation Fees

For preparing your car, the dealer will often add an additional preparation fee to your bill.

Just to conduct a test drive, replace fuses, or take the car’s plastic cover off can have your bill increasing by at least $500!  If you visit other shops, you can get the information that these add on costs are already included in the MSRP as set by the manufacturer. Some dealers automatically add it to the buyer’s order to make it look mandatory.

To take care of this scam, you can ask the dealer to classify it as credit (it should be identical to the amount of the preparation fee) on the following line. If the dealer does not agree to this, you can just simply walk away from the dealership.

Market Adjustment

The dealer will convince you that the vehicle you want is selling like hot cakes and very popular. In order to sell you the vehicle, they will do some “market adjustments” amounting to a few thousand dollars.

This is usually indicated by a tag near the MSRP tag set by the manufacturer. Even if the car you want is very popular and is very much in demand, if it is in stock you should not be tempted because getting a “popular” car is not worth it if you have to pay a few thousand dollars more.

You should never pay more than the MSRP set by the manufacturers. If you do, then you are allowing others to take advantage of you.

Warranty Extension

Although this type of scam is old already, it is still being used and there are many who fall for this trick. What happens in this kind of scam is that when you make a loan for the car, the dealer will tell you that you are required to purchase an extended warranty because it is one of the conditions of the bank. There is a simple way of avoiding this scam.

Ask the dealer to specify clearly in writing that the extended warranty is required for the loan to be approved. The dealer will most probably find a way to have it excluded. If he persists in including the extended warranty, do not do business with this guy and go to other dealerships.

These are some of the most common auto financing scams that are utilized by some car dealers. Always keep these in mind if you are going to buy a car. If you or a friend were treated fairly by a dealer in the past, consider using the same dealership again.

It’s a good indication that they do care about their customers and aren’t just looking for a “fast buck.”

Think very carefully and do not buy on impulse.

Some Car Dealer Scams Still Remain

Are you thinking of buying a car but hesitant to approach your local car dealer because you are not sure about the processes of buying a car as well as wary of possible dealership scams?

Do you feel that your knowledge about cars and getting great deals is not good enough and you want to learn more about this matter? Then this chapter will enhance your understanding about dealership scams.

The car dealer and his trade

To have a proper understanding of car dealership scams, you must first have an idea of the car dealers themselves and how they go about their trade selling cars.

First of all, the car dealer will try and avoid giving you a price quote. This is because the tendency of the buyer would be to go to another dealer and the other one will probably offer a lower price thus, the first dealer loses the buyer to the second dealer.

To increase their chances of getting you to buy their car, they will try to make you commit to them before they give you the final selling price.

On your part, you can do two things: maneuver the dealer into telling you the price quotation or negotiate the terms of the deal with them. If you decided to negotiate with the dealer then be always on the lookout for the following tricks:

Low Balling

This is one of the tricks most commonly done by dealers. They will try to convince the buyer that they can provide the lowest possible price for the car thereby prompting the buyer to start negotiations with the dealer. The salesman will probably tell you that you can get the car that you want for a lesser amount but when you are about to enter negotiations, it turns out that you were not promised a lower price after all. It is just an empty promise.

Best Price Matching

When you tell the dealer that you will try to look around and check other car dealerships, the salesman will ask you to return when you get the best possible price and he will offer to match it. By this time, you will probably be too tired and sick of looking around. Chances are that you will take their offer.

Trade In Scam

When you have already bought the car, the car salesman will try to contact you before your new car is delivered and tell you that the initial pricing of the car was $500 lower and would like to collect the balance from you. If you fall for this, he will get an extra $500 at your expense.

Spraying

What the dealer will do is to pursue you relentlessly until you give up and buy the car. On the other hand, if you decided to buy from another dealer, he will call you and tell you that he could have given you a lower price thus making you upset. To avoid this, you should not hand out your contact number. Some people even give wrong contact numbers just to evade very irritating car dealers.

Puppy Dog Trick

The dealer will allow you to take the car for an overnight or for a whole day, his aim is for you to fall for the car and buy it. This falls in line with the “Yoyo scam in the next chapter.

Immediate Sale

The dealer will give you a very attractive price but he will also make you believe that this deal can only be made until the end of the day. This will cause you to think too much and in the end, make the mistake of buying the car without checking what other car dealers have to offer.

Extra Accessories

The dealer will offer to give you extras like: car mats, window tinting, and other accessories. This aims to stop you from asking for a lower price because of the perceived “extras” that you will be receiving from the dealer. It will slow down the price negotiations and divert your attention away from the price.

All of us want the best deal available and we abhor the notion that someone will take advantage of us through modis operandi like car dealership scams.

So before going to the local car dealer, you better have a good idea of what he will be talking about.

As they say, only a fool will go to battle unprepared and with no weapons. Your weapon will be knowledge, always remember that.

Before You Sign The Dealer Financing

Security from any fraud and unscrupulous activities should be a serious concern for anyone who is into sales, lease, jobs, or any kind of services that entail certain provisional agreement and settlement.

Whether a party is a first time or an expert person, the industry and the services that go with it presents the concerned person with risks and challenges that you cannot underestimate.

Every time that a person is engaged in a commercial transaction in the society, he or she is in danger of submitting their selves to probabilities of fraudulent activities.

That is why contracts were made to ensure the security of both parties involved.

Generally, contracts are created to provide solid information about the agreement that transpired between two or more parties and that any details stated therein are bounded by certain laws and regulations.

Hence, it is extremely important for a person to know the important details of the contract before he or she signs and submits to the pact.

Here is a list of some of the things people should know before they sign a contract.

Knowing these will surely protect them from any discrepancies or any fraudulent activities that may happen.

1. Be aware that a contract is a legal document, bound by legal provisions and stipulations.

As defined, it is a “legally binding,” printed arrangement signed by two or more factions or groups, which entails their commitment to each other.

With the term legal, this means that any provisions stated therein are bounded by law, in which, any act, made by a particular party or all of the parties concerned, that constitutes as non-conformity to the details of the agreement will be held liable with the law.

This means that anybody could be imprisoned or held in custody with the law unless other wise the concerned party is proven not guilty.

Hence, it is important to be meticulous about the details of the contract before signing it to avoid any potential risk.

2. Make sure that you are dealing with trustworthy and reliable companies

It is extremely important to know first who the concerned person is dealing with. Therefore, it would be better if an individual or a party would try to do some investigations and background checks first before they sign the contract.

If in the event that a person or a party is in doubt, it is best to follow their instincts and fore go the signing of the contract.

3. Know the fine print

The problem with most people is that they assume every detail as part and partial of the whole agreement, thinking that everything will be stated as agreed verbally, and that there will be no harm if they will not read thoroughly the fine print.

This should not be the case; otherwise, they can get into trouble with the parties involved or with the law.

People should bear in mind, that the law fully assumes that any person or entity that has agreed to sign in a contract has fully understand the details stipulated therein. Hence, there is no excuse for any party who claims that they had missed certain details in the contract.

4. Make sure that all of the details about the contract are fully stated.

This means that all information pertinent to the agreement should be stipulated clearly and completely. For example, for service contracts, be sure that the beginning date and ending date of the service is clearly stated.

5. Make certain that there are no blank spaces in the contract

Before signing a contract, concerned parties should try to inspect the document meticulously and ensure that there are no blank spaces present. This may pose greater risks if left unattended, especially if their signatures are already affixed on the contract.

All of these things are boiled down to the fact that people should be very careful about transactions, deals, or agreements that they commit to. It is relatively important to be aware and knowledgeable of the details of the contract before signing it.

You may have heard that ignorance of the law is not an excuse.  This is true, therefore, it is better to be fully aware of it than to be in trouble with the law in the end.

Pointers When Buying a Used Car

Buying a car from an individual or from a local car dealer is one tedious task if the objective is to purchase a second car that is still in good running condition.

A buyer would never trade his hard-earned money with just a complete wasted used car.  Whether new or used, when buying a car, it should be treated with the same importance and value.

There are things to take into consideration before buying the car and these are:

1. Educate yourself as a consumer
2. Prepare a list of your needs.  Prioritize between the necessities and the wants.
3. Determine the budget and the kind of car that would best fit.
4. Make a selection by models and types.  Narrowing them will be helpful.
5. Research both online and offline by dealers.
6. Know the value of the second hand car in the market.
7. Research the Vehicle Identification Numbers and history.
8. Take a mechanic when checking the car whether buying from a friend or a dealer.
9. Never shy away from asking questions.
10. If there’s a gut feeling about it not being good, don’t be afraid to walk away.

Bringing a mechanic along is always a good strategy.  Make sure your mechanic inspects the total car, from the history down to its last screw.  It should be parked on a level spot.  You should make certain that it was driven for about an hour before the inspection.  Always make it on a well lit surrounding and in broad daylight.

How to inspect it thoroughly:

Checking the exterior.

Walk around to see if there is damage to the body.  The corners of the car should be shaken and bounced up and down to see if the shock absorbers are still in good condition.

Make sure that the wheel bearings do not make any sound when trying to pull the front tires by tugging them.  Open the doors lift the hood and the trunk to see if all the rubber seals are still in place.  This will also tell if there’s anything loose around the hinges.  Check for signs of repaint.  There will be difference in the color because shops can never duplicate the original paint of the car.

Ask someone to turn on all the lights outside of the car and look if all are working.  Cars with only 30,000 miles of travel must still have its original tires.  Beware if you find a car with only a few miles of travel but has new tires.  When the test drive is done, check the discs of the brakes, this should still be clean and smooth.  Check the windshield for cracks.

Checking the Interior.

Though it sounds odd, smell the inside of the car.  Sniff under mats and the carpet.  If it smells like mildew then it’s a sign that there is a leak somewhere or that the car may have undergone flood damage.  Switch on the air-conditioning to make sure that it really turns the whole inside of the car cold.  Next, try the heater.

Try out all lights inside as well and never forget to blow the horn.  Also try all the seat adjustments.  The upholstery should still be in good shape too.  There is a lot more to check and here is where the mechanic can help the buyer.

Looking inside the trunk.  Once more, smell the insides and check for any signs of leaks.  Make sure that some basic car tools are still present for the new user.

Checking under the hood.  Feel the wiring for any cracks or brittleness.  Squeeze the hoses and the fan belt for any cuts and possible electrical tape patches.

Do not take off the cap of the radiator until its cool enough.  The greenish color indicates a good condition where the coolant is.  Beware of stains and dirty-whitish color on the radiator.  Again, let the rest be checked by the mechanic like the batteries.

Checking under the car.  Lie down if you must and use an emergency light to see the engine underneath.  Feel any signs of residue.  Check the pipes and examine any possibility of heavy rusting.

Do the Test Drive.  The owner or dealer should not stop a buyer from going over about twenty minutes of test drive.   This is a special time to thoroughly look for any problems with the air-conditioning, heater, steering wheel, brakes, transmission, and most importantly, the comfort.

Feel everything; it’s okay to try it on a hump or a slight bumpy road to really experience the performance.  Listen carefully to check any rattles.  Have a pen and paper, flashlight, gloves, magnet, towel, blanket and even CD or tape when checking a car out.

Basics Hybrid Vehicles Explained

Petroleum-based fuels are ideally suited for internal combustion engine technology, which has powered most cars and trucks for over a century.  Burning fossil fuels for over a hundred years however has done some serious damage to the ecology of the planet.  Enter the electric vehicle with lower emissions, but correspondingly lower power.  Finally, both technologies have come together in hybrid vehicles, also known as hybrid electric vehicles or HEVs.

Present-day gas mileage saving hybrid vehicles are equipped with both gas internal combustion engines and electric motors.  The gas engine produces power through small and continuous controlled explosions that push pistons which turn a rotating crankshaft.  The force created by the rotation crankshaft is transmitted through a number of components and ultimately turns the vehicle’s wheels.  The electric motor is powered by a battery which creates energy through a chemical reaction.  The battery is continually recharged by a generator that is powered by the internal combustion engine.

Hybrid vehicles are of parallel or series design, or a combination of the two.

In parallel design vehicles, the electric propulsion system and the energy conversion unit are connected directly to the vehicle’s wheels.  The gas engine is used for highway driving and the electric motor acts an assist and provides additional power for acceleration, hill climbing, and other situations that require more power.

In series design vehicles, the gas engine is connected to an electricity producing generator.  This electricity is used to power an electric motor, which in turn powers the vehicle’s wheels.  Hybrid vehicles can also be designed to use the series configuration at low speeds, and the parallel configuration for acceleration and highway driving.

Braking in conventional vehicles generates heat.  This energy is wasted.  Some hybrid vehicles convert this energy to electricity and use it to help propel the vehicle.  This process is called regenerative braking and contributes to the overall efficiency of the vehicle.

Other hybrid vehicles extend the life of the car’s on-board battery system by using ultracapacitors.  The ultracapacitor is more efficient than a battery for capturing the energy from regenerative braking and utilizing it for initial acceleration.

Common Car Buying Mistakes To Avoid

Here are a few of the most common car buying mistakes that people of all shapes and sized make every day… even though they may seem like common sense, I would see these all the time when people go into the car buying mode.

1. Lack of research and homework when it comes to their car buying possibilities and options. Really no excuse in today’s Internet world. I mean really… why would you want to get your car product knowledge by quizzing the very sales person who is trying to sell you the car??? You wouldn’t.

2. I mentioned the Internet… the car pricing and car buying tools on the web are bountiful… you can get new car prices, used car prices, car insurance quotes, you can determine the value of your trade, you can check your credit score, apply for new car financing, check on auto extended warranties, I mean right here, I’ve given you links to free online services to get all the information that you’ll need… so no excuses… you’re online right?

3. This one really baffles me… but I saw all the time… not taking a test drive… jeeeeez… I can’t write anymore on this one… test drive the car.

4. Using a leasing option to afford more car than you can really afford. Depending upon the interest rates and the economy the popularity of leasing comes and goes, but just like purchasing, you must know your budget and the pro’s and con’s of leasing a car.

5. Spending too much time comparing prices… yep that’s right… but let me finish… too much time comparing car prices and not enough time researching the makes and models… let’s face it… a good deal on a bad car is not a good deal.

6. Assuming that the dealer financing department is going to get you the best possible rate. Huh? If you think that’s the case, you really need to visit my website and read through the dealer financing section… the financing department for a car dealer can be a very tidy profit center.

7. Buying the wrong car for the right color… Oh we as humans… I never did figure out such particular people as to get into the wrong car because it was the right color… especially true with younger females… sorry gals.

8. Not preparing their trade-in for evaluation. A big percentage of people overlook this dollar saver. Everyone is human, even the used car manager (believe it or not), and if think a well dressed trade-in doesn’t get you any more money than one that looks like its been road hard and put away wet… then you’re burning money.

9. Buying those dealer add-on’s. Big markup… most of which goes to the sales person who got you to buy these things in the form of a cash spiff.

10. For those of you who fancy yourself a grizzled veteran of car buying and therefore don’t need to do all that boring car buying research… this can be a big mistake… the car business is extremely dynamic with manufacturers’ rebates and incentives always changing, financing institutions getting creative with their programs and terms and such… if you want to get your best car deal, then come prepared.

11. Giving up all your hard work in car buying process that saved you a bunch of money by ultimately buying a car that has a high cost of ownership factor… remember it’s not just price of the car that is ultimately the cost of the car.

Gas Mileage Tips When Alternative Isn’t An Alternative

OK… we’ve heard of all the alternative fuel car answers. You know… hybrids, corn, water… whatever else.

The fact remains that the vast majority of us still own the same type of engine in our cars that we always have and just aren’t in a position to with these other alternative fuel vehicles just yet and purchase a new car.

So, until that time comes, if you’re like me, you do want to get the most you can out each gallon of gas your vehicle consumes.

Lately due to the steep gas prices, there has been a rise in the popularity of how to get more for each gallon of gas… mostly dedicated at changing or modifying your driving habits.

There are still some tried and true maintenance tips that you can use that will also help you squeeze every inch out of your gas mileage as well.

So if your going to stay with your older car a while longer… and zero payments, here are a few gas allowance savings tips.

Bad, inefficient spark plugs are source of fuel guzzling. Spark plugs that are old and not firing properly can rob you of as much of 30% when it comes to fuel efficiency. So, don’t skimp on cheap plugs… get the higher rated plugs… gas is too expensive to not set fire to.

Your car needs air to run. If your air filter is getting a bit long in the tooth and becoming clogged… there goes another possible 10% of your gas mileage. If your air filer is looking a little grey and dingy… then your car may be gasping for air and losing gas mileage.

Keep the fuel system clean. Over time the internal working components of your fuel system will accumulate gunk and deposits. Using a fuel additive once about each time you change your oil will help keep this gunk in check and allow your engine to run more efficiently and healthy.

With gas prices as high as they are, there’s no need to empty your wallet without fighting back. By implementing just the 3 tips above you’ll keep more money in your wallet and make fewer stops at the gas pump.

How To Avoid The Used Car Lemon

It doesn’t matter what type of car you’ve got your eyes on… new, used, or even the make and model, driving off in that new purchase of a car is a big financial commitment… even if you pay cash completely for your car.

For our discussion here, let’s talk a bit about buying a used car.

One decision that many of us have to come to terms with when considering the purchase of a used car is the fact that used cars won’t come with the peace of mind provided by a factory warranty (assuming the used car is beyond the factory warranty… which most all are at the time of purchase).

Because of this, there is a certain amount of risk that is at an elevated level with used car buying.

If you know how to look at a used vehicle and recognize some points that affect the dependability score, you’ll be able to avoid some of the anxiety of purchasing a used car.

Currently more than 8 out of 10 vehicles purchased are, in fact, used cars… so you’re definitely not alone here. This statistic really isn’t all that surprising since there is a great price difference between that of a used car and that of a new one.

However, if the used car you buy turns out to be in bad shape and requires large or constant repair, you can quickly give back all the savings you realized by buying a used car instead of a new car.

So, let’s take a look at some quick used car buying tips that you can easily use to help you evaluate the condition of a perspective used car.

The first really goes without saying… but just to make sure… have the car thoroughly checked by a mechanic.

Even before you get the car to your mechanic you should look on the inside of the door panels, on the seams of the hood and the trunk for over-spray. Over-spray is where the car has been painted in a body shop. Look closely. Even the best of body shops can’t blend the paint perfectly with the factory so they have taper off their paint job at natural seams or breaks in the body.

Look closely at the carpet on the floor of the car and even pull back a couple corners of the carpet to check for rust and water damage. A car that has been under water and refurbished can be a big problem down the road.

Check to make sure that the wear on the brake pedal seems to match what the mileage is on the odometer… a used car with higher mileage is going to have a brake pedal that looks almost new.

Look at the tires and check for even wear on the treads of the tires… uneven wear can be a sign of alignment problems of worn out components of the steering or suspension areas.

Also, when sitting in the car, crank the wheel to the max in both directions and listen for any ‘clunk’ or other type of noise. This could be a sign of worn CV joints. Joints that are not inexpensive to replace.

And while your in the used car be sure to check all the creature comforts as well as the heating and the air conditioning.

For the most part, if you combine these few tips with just taking your time and not getting into a rush, you’ll greatly increase your chances of purchasing a used car at price that won’t keep costing you later down the road.

Car Sales Down Quality Up?

At least according to a J.D. Power and Associates recent study.

The findings showed that the number of problems car owners are having is actually dropping. It should be noted however that the study showed that 5 of the top 10 consumer reported problems with their cars three years ago… still remain in the top 10.

So “minimizing quality deterioration” remains a high priority for the car industry according to J.D. Power. This is measure of the problems that car owners have within the first three years of ownership.

Tough to knock of the big dog…

The Lexus brand was again rated number 1… bye the way, that’s the 14th consecutive year for Lexus to hold the top spot for this consumer study. Lexus owners reported 120 problems per 100 vehicles sold. This numbers is actually 25 fewer problems per 100 vehicles sold than was recorded for the 2007 study. Quite impressive.

In case you’re wondering… and why not…

Mercury cruised into 2nd place with 151 problems, followed closely by Cadillac with 155, Toyota actually finished out of the medal race in fourth 159, and Acura rounds out the top five with 160.

OK… so it begs the question… who is scraping the bottom?

Land Rover landed in the basement with 344 problems per 100 vehicles sold… yikes. The other cellar dwellers in the bottom five were… Suzuki with 302, Kia with 278, Isuzu with 274, and Saab breaks the tape at 254.

Now to fair… Saab also gets the most improved award with 65 fewer per 100 than a year ago.

Speaking of most improved… the most improved car industry segment goes to those in the mid-sized SUV range. This group showed 36 fewer problems per 100 this year.

In fact, the industry average had a good year improving from 216 a year ago to 206 this year.

So, all in all this appears to be a tale of two stories… much of the industry showed improvements, yet 5 of the top ten reported from three years ago are still in the top 10.

The Perfect Electric Car?

General Motors is pushing hard to ready its electric powered ‘Volt’ for production by 2010.

Changes have been made to the exterior since GM first pulled the covers back at the Detroit auto show back in 2007.

The Volt has understandably generated massive amounts of interest in a short amount of time due to the current fuel crunch and the political climate. GM says that the time-line for the production of the electric vehicle is not only important to GM but for the auto industry as a whole.

With the grips of the currently energy crisis continuing to tighten around consumers and the entire economy, GM is under huge pressure to deliver the car on the set time-line. To that, GM indicates that the production of the Volt is on schedule even though there are significant challenges centered around delivering a batter power source both durable and affordable enough for the mass market.

Currently, a rechargeable lithium-ion battery would power the Volt. This power source is currently rated to last about 40 miles. The Volt also contains a small on-board motor designed to recharge the battery between stops… this power-train model that GM calls its E-Flex is slated to be used by GM in a range of other models.

Ultra fuel-efficient vehicles is the mantra around the country right now and auto makers are rushing to compete to satisfy this demand. The Volt is GM’s strategy not only for this but to also compete with the success that Toyota is having with its Prius.

Competition is a good thing as auto makers across the board are stepping up efforts to engage in the marketplace.

Honda has indicated that it plans to unveil a new hybrid car next spring to also compete with the Prius. Honda’s goal is to sell 100,000 units of this new hybrid electric car… which by the way… is currently said to be priced lower than the Civic hybrid.

The unique aspect of GM’s Volt is the presence of the on-board motor. The on-board motor makes it possible for the Volt to re-charge while on the road. If this functionality proves to be viable, it would solve a major hurdle in the marketplace as consumers are still reluctant to purchase an electric vehicle that could potentially leave them stranded once a charge is depleted.

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