4 Tips for avoiding car buying scams

4 Tips for avoiding car buying scams

Whenever you move to purchase a vehicle, there is always an inherent risk involved. For instance, most people who purchase vehicles off of places such as eBay will often enlist the services of a car transport  or car shipping company versus drive all the way out to purchase the vehicle and drive it back themselves.

The same could be said for those people who purchase unique vehicles such as those from antique car shows or classic car shows. Therefore, the following tips offer car buyers some tips and advice for avoiding scams when purchasing a vehicle:

DON’T FINANCE AT THE DEALER. This is especially true if you have poor credit. Instead, line up your own financing options, or at least know what they are prior to going purchasing a vehicle, this way you will have something to compare it to.

KNOW YOUR CREDIT SCORE. When you are at a car dealership, unscrupulous car salespeople will sometimes try to play mind games with you when it comes to your credit score. This is why it pays to know exactly what your credit score is before hand. You could even print out copies of your credit score and bring it with you if need be. Regardless, no one else should know more about your credit score than you.

AVOID TRADING IN YOUR CAR. This applies to those who have not yet paid off their current car before they intend to purchase a new one. Prior to purchasing another vehicle, if you are planning on getting rid of your current vehicle, and you still owe money on it, then you should try to trade it in ONLY after you have paid it off yourself first. Once you do that, obtain the title from your lender, and THEN you can feel free to trade it in or sell it privately. If you do purchase a new car  and have traded in a vehicle for which you still owe money on, make sure you get it in writing from the dealer that your vehicle will be paid off in 10 days; otherwise, walk away.

GET YOUR WARRANTY AGREEMENT IN WRITING. Avoid the all too common “forced warranty” scam by having the dealership (or whomever you’re purchasing the vehicle from) put it in writing that the warranty “is required to be approved for your loan”. Often times, dealerships will prey upon people with bad credit or those who are simply naive by making them believe that a warranty is required. Another way to avoid this is to avoid financing at the dealer if you have poor credit. Instead, finance your vehicle online or through a credit union.

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