Don’t Become The Next Victim: Watch Out For These Car Buying Scams

October 5th, 2014  |  Auto Insurance

Buying a car is an exciting time. It’s also a time when you can easily get caught up in the hype and excitement, making you vulnerable and exposed to potential car buying scams. There is nothing like driving your new car off the lot for the first time. And, since most of us are impatient, we want to drive our new car off the lot today.

You may be thinking, “Surely I won’t be scammed!” Think again. People are scammed when buying from large car dealerships, used car lots, private sales, and when buying a car online. 

There is always someone looking to take advantage of unsuspecting consumers. Are you one of them?

Salesman and scammers understand how to play to your emotions. They know how exciting the buying process is and know that you want a new car today. Emotions tend to take over and rationality often goes out the window, especially when you think you are getting a good deal. 

Follow these general tips when buying a car:

• If the deal seems too good to be true, it probably is (especially when buying online)
• If something seems fishy, you can always back out
• Remember that you don’t have to make a deal today
• There are lots of places you can buy a car – don’t feel pressured to buy from a specific dealership or person
• Get a second opinion, especially if you are buying used
• Take someone else with you – A family member or friend that has knowledge of the car buying process

Learn More About the Car Buying Process

Top Five Myths About Buying A New Car

6 Tips For Buying Your First Car

Car Buying Scams to Avoid

There are dozens of car buying scams out there and new scams pop up all the time. People will do anything to make a quick buck and you need to be aware of some of the scams that exist in order to avoid them. 

Here are 5 of the most common:

1. Online payment scams: When buying a used car online, never pay online (via PayPal or email transfer) in advance of picking up the car. Always pay for the car in person, after you have had the chance to inspect it.
2. Mistakes in paperwork: A common scam is to make an error in the paperwork – always in favor of the seller. Make sure you thoroughly read through the agreement and check make sure the finances add up before signing the deal. 
3. Bait and Switch: This involves a seller advertising a great deal; only to tell you the car has been sold. They then proceed to try to sell you a more expensive vehicle. Don’t fall for it! 
4. Focusing on the monthly payment: Never base a deal on the monthly payment alone. It’s easy for car dealers to give you the monthly payment you want and they can hide additional costs in the deal without you knowing it. Always negotiate based on the actual price of the vehicle. 
5. Title washing: This involves hiding the history of a used car that has been salvaged from areas that experience a natural disaster. Remember those hurricane Katrina cars that showed up on the used car market?

These are only a few of the many car buying scams you need to be aware of. For a complete list of car buying scams check out The Ultimate List of Car Buying Scams

Have you ever been a victim of a car buying scam? What happened? What tips can you offer to other buyers to help them avoid being a victim of a scam?