Car Scams Revealed…

In this series, I aim to uncover the scams associated with the car buying purchase. Some of the topics I'll discuss will vary as far as what the present trend is. Part I will deal with letting the salesman talk you into driving the car home. It also deals with the issue of car dealers ripping you off by giving you unwanted add-ons. These two scams run pretty apparent in the parking lots of today's car sales places. It can happen to the most unsuspecting person or even the sharpest.

The Scam: Negotiations run between two parties for a while with no one coming close to what they want to happen. The salesman is grows impatient and becomes weary of taking trips to the sales manager's office. The customer becomes weary and tired from the dog-and-pony show they must go through in order to get the bottom line correct. Suddenly, the customer finally has had enough and decides to leave. The salesman, out of desperation, suggests that the customer "drive home" the vehicle for a day or two just to see how good it will fit...

Although this isn't necessarily a scam, it's still very commonly practiced today. Called a "DeHorse," it's basically the motion of hoisting a customer out of their present vehicle (old horse) and placing them in the vehicle they test driven (fresh horse). This scenario is similar to the old cowboy movies where a cowboy gallops next to a wild horse with his horse. Suddenly, the cowboy jumps from his horse onto a wild one without losing speed or balance. This sort of sensationalism is prevalent on many car lots.

Similar to these movies, car dealers will try to use this technique in a number of ways to get you out of your main mode of transportation. These ways is usually the end routes after a round of negotiations that didn't go as planned. However, there're only two reasons why car salesmen offer this supposedly "benefit" to customers. The first one is to give you a reason to leave the vehicle you plan on trading in to the car dealer. This allows the dealer more time to not only inspect the trade in to see if they are putting too much or too little into the vehicle. It also prevents you from shopping prices with other dealers. How can you show your trade in when it's sitting in another car dealer's lot?

The second way they benefit from you driving the vehicle home for the night or weekend is to create ownership of the vehicle. They are hoping that when the family sees the newness of the vehicle they will feel joy. The neighbors would be inquisitive and begin asking if that's your new automobile, and that you will feel comfortable seeing the vehicle parked next to the house. This psychological impact can carry a lot of weight when it comes to ownership. The first goal of ownership is taking something into your possession. The ways car dealers will try to use this technique are too numerous to list.

Here are some other ways car dealerships run this sort of scam. While too numerous to list, this should give you a basic outlook. Study this list and the main hook you just read before venturing into a car dealer's showroom.

• If they are about to close
• If the customer threatens to walk out
• If they are having trouble finding companies to financing the loan
• If the trade in is of some value
• If they are waiting on the down payment

The Scam: You're sitting in the office of your salesman, discussing how much you're willing to spend in vehicle payments each month. The salesman asks you to "write down" the amount you want. He asks you "if I can get your payments around this figure, will you buy the car today. Then goes into the sales manager's office to discuss your payment with the manager Finally he returns with a payment that's "slightly" higher than you expected...

"Packed Payments" is the latest car dealers scam that's sweeping across the nation. Even though it's illegal in most states, it's practiced nonetheless. A packed payment is simply a way where there can be room in your financing for the finance manager to work with. It can be anywhere from a few dollars each month to hundreds. This is simply a way where it benefits the finance and sales departments of the dealership. Car dealerships prosper because they know they can add on more items on the contract without the customer even noticing it.

For example, if you only wanted payments of no more than $300 per month, yet when the salesman returns, he quotes you a price of $375 a month. What has happened is he included back end products in the deal. This illegal practice may vary from car to car yet happens a lot of times. Some of these products include GAP insurance and paint and interior protection. Other products may include extended service contracts plus life and health insurance and many more items that are unwanted. These are items that isn't needed yet is pushed on unsuspecting customers on a regular basis.

Even though payments may be $317 a month, with these unnecessary items on your contract, it will boost your payments to $375. A lot of people don't catch on to this because the dollar amount may be too small to detect. After agreeing with the car note amount, they usher you into the finance department to talk to the finance manager. He will do his best to sell you on these items because it means more money for him and the dealership. This makes his job easier because since you already agreed on the cost, he will say he'll say the dealership will include these items.

Many people agree with the inflated price because they feel they get so much extra than what they thought they should get and still have the same payments as they were quoted earlier. In reality, they have already paid for these items and the finance manager is making them feel good that this is something they wanted. How would it feel if you were given something to eat for free yet you had to pay $5 dollars to get inside the building?

Packed payments may also be used to get the customer to settle on an older or cheaper model. This is especially used when there's an end-of-the-year sale. The dealership is trying to unload their old cars to make room for the newer models. What happens is the customer is pushed into something they never wanted simply for the car dealership to benefit. Some of these cars may well have been used as the test drive model. Or it could be a model the salesmen use to pick up food orders from surrounding restaurants.

Be wary of car dealers who practice this method. Be sure to scrutinize over the amount quoted. If unsure, it's best to bring along someone who is knowledgeable about how to read contracts. Bringing someone who can understand how to read contracts is helpful also. This will keep some money in your pockets as well as saving you from purchasing options that may have already been included or is unnecessary.