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Scams to Look For When Purchasing a New Car

Buying a new vehicle is already hard enough without a car salesman putting pressure on you while you are browsing. We all know that almost every car dealer can be negotiated down on the sale price of a car. The thing is that to watch out for the scams so that you can maximize your hard earned cash. In this article I am going to share a few sales tactics that you may want to be on the lookout for the next time you purchase a new car.

1. Some dealerships may try to scam you by charging you for having the VIN# etched on the windows, saying that it is a requirement by the loan compnay. It is not. Lenders will never ask you to add features you don't need. Their main concern is your ability to repay the loan.

2. This is a scam for those with poor credit. The are dealership that may quote the "subject to loan approval" phrase found in many loan proposals as a way to get as much as an extra $1000 and $50 per month out of you. A way to avoid this is to get you funding from a bank or other lender.

3. The credit score scam is very common nowadays. This involves the car dealer telling you that your credit score is lower than it really is and attempting to charge a higher interest rate. When purchasing a new car it's a good idea to bring along your credit report to dispute any claims that they could make.

4. The warranty scam is one that involves the dealer selling you a $2000, 3 year warranty, saying that you need oit to qualify for financing. NOT TRUE. A car warranty is optional and hs no influence of getting a loan.

5. Another good scam that you may have seen is the dealer prep scam. This is an extra $500 that seems to appear on your contract to compensate the dealer for that hasn't been done because the car arrives in the dealership ready to be driven off the car lot to a prospective buyer. Try and avoid paying this if you can otherwise find a dealer that will knock off this ridiculous charge.

6. The 'dealer mark -up fee' is another scam. This fee does nothing but boost the dealers profit margin. Greed is the purpose of this fee, plain and simple.

As common as these scams are, there are also quite a few reputable dealerships out there. Dealerships that will give you a good service and sell you a car at a fair price. You just have to look carefully for them.

Article Source: http://www.uberarticles.com/articles

Roberto Beiro has put together 100's other great car articles at his website. He is also a writer of 100's original articles like tips on buying a used car. This and other unique content new cars articles are available with free reprint rights.

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