Top 5 Dealer Scams to avoid when buying a Car

Dealer scams are innumerable. Here are 5 most common auto dealer scams you should be aware of when buying a car.

Dealer scams are numerous, they may seem either ridiculous or outrageous, however they are always used to rip off unsuspecting car shoppers. Here are top 5 dealer scams we would like you to know about and beware of:


Extended warranty scam

If you are financing your vehicle through your dealer, then be ready to face different types of tricks. One way to scam you is telling you that the bank will not finance your vehicle unless you purchase an extended warranty. This is, of course, not true, as buying an extended warranty is not mandatory.


Selling a vehicle “as is”

In contrast to the scam described above, in this scam scenario a car buyer will be offered a vehicle “as is” i.e. without a warranty. Usually, it is the flooded, salvaged or wrecked vehicles that come without a warranty. Thus, if your dealer tries to sell you a vehicle without a dealership warranty then there is something wrong with the vehicle.


Low credit score scam

Often a dealer will look at your credit history and tell you that you do not have much chances of getting a good financing with your credit score. This is usually done to make you pay higher interest rates. However, do not believe dealer’s words, check your credit history on your own and take the documents with you when going to the dealership.


Monthly payment scam

This is one of the most common dealer scams in the book. Usually, dealers start tempting potential car buyers with low monthly payments. However, it is worth asking the price of the vehicle first. If you are eager to pay low monthly payments you may end up paying them for 4 to 5 years even. The thing is that you will be paying too much for the vehicle, as the vehicle’s value will depreciate over years.


Dealer preparation fee

Dealer preparation fee is the most ridiculous fee a dealer may ask you for. The thing is that the manufacturer has already added this fee to the price of the vehicle. Thus, if you agree to pay a dealer prep fee to a dealer, that would mean you are paying twice for the same thing. The so called dealer preparation includes the test drive, and a few minor services a dealer must provide when selling the car.


This is not yet the full list of dealer scams, as they are innumerable. Just be attentive when buying or leasing a vehicle not to become a victim of dealer fraud.

You May Also Like

Tricks of the Used-Car Trade

Saying that everyone trying to sell you a used car is a conman, is a gross generalisation. But assuming that no-one is, is naïve. Protect yourself by being mindful of these commonly-used tricks.