Don't get ripped off by dealers when getting a used car!

Here are some common used car dealer scams to watch out for:

The "Financing Fell Through" Scam

This scam is used primarily on those with bad credit. After you have had the car a couple days thinking everything is ok, all of a sudden you get a call from the dealer saying that your financing fell through...but he can get it "fixed" for say... $1000, BUT you're payment is probably going to go up a bit too. It's a load of garbage...they would NEVER let their car leave the lot without the financing being finalized. To avoid this scam, it is best to get your financing done BEFORE you even step onto the car lot. Have some financing set up, and make the dealer COMPETE to get the financing!

 The "Warranty and Life Insurance" Scam

Some dealers will tell you that the lender "requires" that you purchase an extended warranty and/or credit life insurance from the dealer before they can finance you. Again, this is a load of bunk...if the lender is "worried" about you not being able to repay your loan, why would they want to increase the amount you owe and raise your payments? These items can also be purchased online, at a much better price than what the dealer will probably offer you. I recently just bought a used car, and my credit isn't the best either, and my lender actually required that I did NOT buy an extended warranty from the dealer and add it to my loan with them!  

 The "We'll Pay Off Your Current Loan" Scam

If you think your local car dealer is beoing a great guy by "paying off your car, no matter how much you owe," think again...basically all they are doing is added the old car's balance to the new car's loan...and extending the term of your loan. Always pay off the old loan before starting a new one!

For a more complete list of car dealer scams, Click Here