| It's one of the most adversarial situations most | | | | factors associated with your credit. You can (and |
| people find themselves in; sitting across from a | | | | should) get a copy of your credit report and FICO |
| car salesman whey they're buying a car. To make | | | | score before you go anywhere near a car |
| matters worse, most people are woefully | | | | dealership. Information is power and you need to |
| unprepared for it. It's like a trip to the dentist. You | | | | have as much as power as possible. You are |
| know it's necessary, so you tolerate it, but don't | | | | entitled to a free credit report from each of the |
| really take any steps to make the visit better. | | | | major credit reporting agencies; TransUnion, |
| You can stop that abuse suffered at the hands of | | | | Equifax, and Experian. |
| your local car dealer right now. There's no reason | | | | Car dealer scam #3 - Trade payoff scam |
| they should have all the ammunition in this conflict, | | | | This is especially popular during ads for big sales. |
| is there? If you were aware of some of the | | | | You hear it all the time "We'll pay off your trade |
| dealer scams, you could prepare and turn the | | | | no matter how much you owe." You don't actually |
| tables, right? Now, most car dealerships are | | | | think they are going to pay off your trade out of |
| ethical, honest businesses, however there are | | | | the goodness of their heart, do you? Actually it's |
| those that deserve their reputation for sneaky, | | | | another great opportunity for the dealership to |
| underhanded tricks and outright scams. | | | | trick you into financing more through them. They |
| Car dealer scam #1 - You must fill out a credit | | | | pay off the balance due on your trade, but to do |
| app. | | | | so, they roll it into your new loan, so you're |
| Many people know they are in a better position to | | | | getting a loan for your new car and the |
| negotiate if they have their auto financing | | | | outstanding balance on your existing car. |
| prearranged before they venture down to their | | | | Combined with scam number 2 above, they can |
| local dealership. That takes one arrow out of the | | | | get you to finance a pretty hefty amount at |
| dealer's quiver. After all, in one sense, the car is | | | | fairly high interest rates. The other upside of this |
| just a vehicle to sell you a financial product. In | | | | scam for the dealer is that they get your trade, |
| many cases, an unscrupulous car salesman will tell | | | | and you may have little or no idea what they |
| you that you are still required to fill out a credit | | | | actually gave you for it. They do the old shuffle |
| app because of the Patriot Act. That is, to put it | | | | and "Wham!" it's all over. If you are a payment |
| bluntly, a total load of bunk. | | | | buyer, like so many people are these days, it's |
| Section 326 of the Patriot Act requires banks and | | | | much easier for the dealer to pull this scam. All |
| other financial institutions must get all your | | | | they have to do is get the payment where you |
| personal information before you open a new | | | | want it and you're good to go. It's easier to be |
| account, but it says nothing regarding buying a | | | | this kind of buyer, since you don't have to do any |
| new vehicle. Remember, you're not opening a | | | | troubling calculations, but watch out, you'll get |
| new account. It's just one more thing the | | | | taken. |
| dealership may try to pull to keep you off balance | | | | Really watch out if they try this scam with a |
| during the negotiation. | | | | lease. A lease is a contract with very strict terms. |
| Car dealer scam #2 - The credit score lie. | | | | The overwhelming chances are that you can't get |
| One trick tried on occasion is the credit score lie | | | | out of your lease without paying huge penalties; |
| scam. They tell you your credit score is lower | | | | which you will. To make it worse, you'll probably |
| than it actually is. This way they can get you into | | | | finance the penalties and pay interest on them. |
| more profitable financial products. Don't let them | | | | Hopefully, knowing about these scams will give |
| try this scam. If you got a copy of your credit | | | | you the opportunity to save a bit of money on |
| report before you went to the dealer, you'll be | | | | your next excursion to the car dealership. |
| well aware of your credit score and all the other | | | | |