How to Keep from Getting Scammed at the Car Lot
While car salesmen aren’t out to do you harm, they are out to make money. They have plenty of profit-maximizing tactics that you can be on the lookout for when you’re in the market for a new vehicle.
Customers with less-than-stellar credit can be prime victims, as can customers without business smarts. Know your credit score before you shop for cars, as salesmen will often attempt to say you don’t qualify for a particular interest rate. It’s also a good idea to come with a pre-approved loan from your bank; that way, you won’t need to fill out a credit application.
Watch out for those special “extra features” like rust-proofing and fabric protection. You should also think twice before agreeing to extended service contracts. Go instead for a reliable car that probably won’t need expensive repairs.
It’s usually much more expensive to finance your car through the dealership. If you’re already paying the dealership mark-up, you can try and refinance.
Try not to negotiate on a monthly payment—this can cause a relatively inexpensive car to cost what a luxury car costs in the long run.
Avoid buying a car over the phone or Internet. There are many opportunities for scams and shady dealings. And most importantly, in every car buying situation, make sure you read all of the documents carefully. Remember that you have the power to ask questions, and to step away.
Tips in a Nutshell
*Don’t let the salesman talk you into a higher price because an advertised sale is unavailable.
*Know your credit score before you shop.
*Don’t purchase amenities you don’t need.
*Don’t agree to an “included” warranty without making sure it’s not changing your monthly payment.
*Don’t talk monthly payments without agreeing on an overall price.