November 25th, 2009 by cheapcar

Car Selling Scams

• Forced Credit Application

If you expect to pay for a car outright with cash, or with a bank draft or check that is your right and ultimately a sensible approach. Some dealerships will not let you. They are trying to get you into paying monthly terms, which of course means more money for them.

Some statements you may hear include:

“State laws require that you must fill out a credit application before I can sell you this car.”

“Everyone that buys a car from us fills out a credit application first.”

“It’s the company’s policy”.

If you are presented with any of these lies, you now know what’s going on.

When you are paying cash why would you think that you need to fill out a credit application? Not only does it not make sense, no state will force you to apply for credit when paying cash. Would you fill out a credit report if you want to buy a sofa or groceries while paying cash? To avoid this scam, just laugh in their faces and take your business elsewhere.

• Sold “As Is” Used Car Scam

This is when a car dealership will sell you a “completely refurbished” car, omitting to tell you that the car has been in a major accident. Basically, the dealer has been saddled with this wreck, used as a trade-in, and just wants to be rid of it.

The vehicle in question will have an “as is” sticker on it, and that no warranty is included with your purchase. This is the dealer’s way of telling you that you are assuming all risks for the car, and apart from the fact that it is not under warranty – you cannot bring it back and complain.

• Dealer Mark up Scam

Apart from being totally unnecessary, this car dealership fee is charged for no reason other than money-gathering. This fee is seen on the orange sticker marked on the manufacturer’s suggested retail price (MSRP), and is a result of expecting money for no other good reason, other than the fact that they want money for nothing.

This sort of fee is generally comprised of -  anything that comes to the dealer’s mind and worded as such to confuse the unwary.

Asking the dealer to remove it, is up to the individual car buyer and probably a waste of your time, certainly a daunting task, when confronted with a seasoned car salesman – any dealership employing this sort of add-on fee tactic, already has a prepared patter designed to baffle any questions.
If the dealer cannot adequately and clearly state just what is entailed in these extra charges, take your business elsewhere.

• Payoff Your Loan Scam

A fairly common sales strategy with some car dealers,  will be them offering to pay off the balance of your current car loan, no matter how much money you still owe on it. There will always be some buyers, upon hearing this, that think the purchasing of a car with a new dealership, somehow now means they now owe no money on their current car.

Er, no.

The reality, is that the dealership does in fact help you get out of your current contract; however, they are not going to tell you – that breaking the lease agreement with your old dealership, will now make you responsible for paying a high increase in  your fees to make up the difference.

You also will not be able to refinance for a new car until those fees are paid. Under the pretext of doing you a favour, the dealership will offer to add the cost on to your new contract with them. At a substantially higher rate, of course.

The dealership only agrees to this deal because they want to get more money from your current car. They will also give you far less than your car is worth on the trade-in. This scam works well, for them, because they will increase your monthly fees, and then, sell your trade in for more money than its worth – certainly more than they afforded you.

These kinds of dealerships, will then quietly extend your monthly payments so that it appears to you, that you are paying a smaller than expected monthly repayment, without even realizing that you have in fact committed to an extra year, of repayments.

Avoidance of this scam, requires that you continue with your current lease contract until it ends. If you are really determined to get a new car, then you should try selling your current car privately. Just sell it outright so that the buyer just assumes the lease payments.

• Bouncing Check Scam

This is when a car dealership announces to you that they cannot accept your bank draft, because your particular bank is always bouncing checks, so often in fact that they now refuse checks from your bank. This then gives them an opportunity to get extra money from you, by offering to sell you a car at a higher interest rate, due to the contrariness of your bank.

You can avoid this scam by getting your drafts from Capital One Auto Finance. Capital One Auto Finance is in the business of giving car loans, so these checks don’t bounce.

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November 25th, 2009 by cheapcar

Test Driving a Car

When buying a “new” used car, firstly, try and not get caught up in the fact that this is a new “toy” and get over excited by a new acquisition, it’s how the vehicle runs that is important. Take it for a serious test drive before you make any decision.

Second-hand cars bought from private owners don’t come with any warranty. You don’t want to buy someone else’s problem, or, for that matter, a lemon. Remember, there are no “lemon laws” associated with second-hand, or used cars.

Do not purchase a vehicle on first inspection. Certainly inspect the vehicle, then go and do some research. There is a lot of help available online when you’re purchasing a used, or Second-hand car.

• Get the vin, or vehicle identification number – With this number you can access a vehicle’s history online through your state.

• Do an online search for the model and year of your car, looking specifically for any complaints or call backs on this particular model.

The first place you should test drive this car is straight to your local mechanic. With a bit of notice, he’ll be glad to set a bit of time aside to go over the car with you. He’ll take a look at your car with a keen and unprejudiced eye. Not forgetting that this is an investment of his time in the prospect of a long-term customer.

Take along whatever service records are available, or you have garnered from the internet, on the vehicle, these will help your mechanic understand the vehicle’s history.

Your mechanic will check the hoses and belts and condition of the engine-oil; the radiator fluid for coolant level and to make sure the fluid is going to protect in severe cold conditions; any engine leaks and the transmission fluid.

Also, a check is done on the lights – inside on the dash, and outside to make sure they all work and are directed correctly. The shock absorbers, brakes, tires and their alignment,too.

There will be a vehicle body inspection, in case there is any rust underneath on the frame; paint continuity, or matching; car body alignment, as in do all the doors open and shut properly? This is a dead giveaway if the vehicle has been in a major accident.

Your mechanic himself should take the car out for a test drive. He will be able to pick up subtle things, perhaps a shudder or hesitation, or hear a sound that you may not. His is the best advice you’re going to get in this situation – and, it is his business to know.

If this all sounds like a lot of work, just for a second-hand car, remember, this is an investment you are making, and your health could be at stake.

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November 25th, 2009 by cheapcar

When Buying a Second-hand Car

When buying a second-hand car, a little bit of research before-hand will go a long way. Used car salespeople, at times quite aggressive, and intimidating – and are famous for it. Here are some survival tips from a former used car salesperson.

1: If the salesperson who approaches you makes you feel uncomfortable, or is too aggressive, insist on dealing with someone else. If this simple request cannot be met, go to another car yard, there are more than enough to go around.

2: Never buy a car on your first visit to a second-hand car yard. The selling pressure never ceases and you will be informed,  that the “big sale” ends tomorrow, or that someone else is interested in the same vehicle you are.

Once you have chosen a car, you will now want to physically remove yourself from the point of sale, do some research to make sure you are getting a good price and not buying a lemon. If you don’t walk away, you won’t get the chance to do the research, the sales pressure will not cease and you could get burned.

3: Make sure you know how much the vehicle is worth before you buy it. If you are trading in a vehicle, you can find out how much that is worth, also. The most realistic car value research tool is at Nada.com. The used car industry uses NADA guides, and the results can’t be disputed. You can print up your results and take them with you to the car dealership to help you negotiate.

4: Don’t buy a car until the end of the month. This is when the salespeople and managers are scrambling to reach their sales targets and make their bonuses. They are more than willing to negotiate at the end of the month than they are at the beginning of the month.

5: Know the vehicle’s history. Having decided on a car and negotiated the price, tell the salesperson to order a carfax report. Once you have the report, check the VIN (serial number) against the vehicle in question, making certain they match. With a carfax report, you will know important facts such as how many people have owned the car and whether it has ever been in an accident.

6: Having found the vehicle you want, at the price that suits you, take it for a test drive – drive it straight to your local mechanic to have a look at. If the salesperson or car yard manager won’t let you take the car to a mechanic, then you are at the wrong dealership and you should walk out.

7: Lemon laws don’t apply to used, or second-hand cars, so, follow the advice given above.

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November 18th, 2009 by cheapcar

Vehicle Leasing and Insurance

When leasing a car, it’s easier to stick with the same company for your auto insurance. What you don’t know, however, is that you may end up  paying too much for your coverage and it’s better to look elsewhere for lower rates.

When you lease, the vehicle that you will drive belongs to the leasing company. They want to make sure that their investment is covered in the event the vehicle gets damaged, totaled or stolen.

They typically want to get covered for the difference between what your auto-insurer pays and your outstanding leasing obligations at the time of the accident or damage. This is called GAP, short for Guaranteed Auto Protection, and is usually included in the leasing contract.

If your leasing company is called BMW Financial Services, Chrysler Financial or any other finance division of an automaker, then chances are your GAP insurance will be offered by the same lease company.

You are under no obligation to accept GAP insurance included as part of your lease agreement. Why pay an insurance premium if you could get the same coverage for a lower price?

Invest some time shopping by comparing quotes from other insurance companies, including your existing one. Ask for discounts that you already qualify for and adjust your coverage accordingly.

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November 18th, 2009 by cheapcar

Buying Your Car on The Web

Buying things online is fairly commonplace these days, so it is of no surprise that buying new, used, or second-hand cars online has become increasingly popular, also. Depending on your geographic location, it may be possible for you to save considerable money by researching for, and buying your new car online.

In the United Kingdom, an increasing number of people are choosing to buy their new automobile on the internet. As long as you are able to find a reputable source, it’s possible to save a considerable amount of money this way. One of the reasons for the popularity of this method of buying cars, is to cut out shady car dealerships.

Finding a reputable source for purchasing your car online, is relatively easy. Instigate a search on google with the name of dealership you are looking at, and add scam, ripoff, shonky, or some such to their name. You may well be surprised by the results that come up.

It pays to keep in mind however, that when you buy online you cannot test out the car like you would normally do…so only choose to buy online, once you have visited the dealership you are looking at, in person, and taken the car for a test drive.

Then back to the desktop, to actually purchase, provided everything about the vehicle in question meets your requirements.

Price guides such as Edmunds or Kelley Blue Book, are readily available and assist you in finding out the true value of the car you’re buying. This will also make sure you’re not paying over the recommended price for your new or used car.

Some online car sites will offer a lowest price guarantee – so if you do find the vehicle you want for less elsewhere, they will at the very least match that price.

Additionally, some online car buying sites will even drive the car directly to your home, although I would not be holding my breath, nor expecting this to be common practice just yet.

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