More Dealership Scams

In addition to financing scams that I covered in another Hub, there is a variety of other scams going on at dealerships that you want to avoid. A sampling of some of the more important ones follows.

Dopey Dealership Fees

Dealers slap on extra charges basically do get the most money they can from you, also known by many as the greed factor. One place you can spot these extra amounts is on the manufacturer's suggested retail price (MSRP) sticker on a side window, generally.

These fees can list a delivery fee, advertising fee, transportation fee, dealer prep fee, environmental fee, document fees, trade-in tax, rebate tax and so on. If you want to negotiate and pay these, go for it. Otherwise tell them to forget this bogus list and stick to the price of the car only, adding in 10% over cost for their extra. Period.

Mini-deal, folks. That's what you want. They do not need to make an entire month's salary for one person off your deal. Read car magazines and other insightful publications for their opinions, if you like.

Hint: avoid a lot of this crap altogether by shopping online.

Pay Off Your Old Car Loan Scam

Dealers often struggle with trade in issues. Of the more bogus scams going on here is when they say they will pay off your old car loan. Although this may sound great, they neglect to tell you:

• What the early pay off fees for this are with your financial institution. These can be high, especially with an old lease where you have added mileage and damage to pay for over the life of your lease period.

• What they generally do is carry this balance, including the fees, over to your new loan. You know will pay even more on the old balance, with interest accruing on it, plus of course, the new amount added on top for your purchase.

• They will pay your account what they want for the value of the car, which will be a lot less than true market value or the price you could get if you sold it outright. Then they will turn around and sell the trade in for a lot more.

• They will focus on your monthly payment so you do not realize all this math adds up to a lot more than you think. And before you know it, you will be paying for an extra year or two or more than what you originally bargained for.

Avoid all this mess by taking car of your old vehicle yourself. Either continue paying off the old lease, then just turn in the car when you are done. Or sell it outright yourself. Head to Craigslist.com or other classified ads and see how you do.