``Top 10 Car Dealer Scams Of 2002'' Released by CarBuyingTips.com
FORT LAUDERDALE, Fla.--Dec. 10, 2002--Which scams have you fallen for? CarBuyingTips.com, a consumer advocate web site released its sixth annual list, the "Top 10 Car Dealer Scams For 2002."
1) The "VIN# Window Etching" Scam
2) The Financing Fell Through Scam (Spot Delivery Scam)
3) The "Lie To The Customer About Their Credit Score" Scam
4) The "Forced Warranty" Scam
5) The "Dealer Prep" Scam
6) "Additional Dealer Markup (ADM)" Scam
7) "We'll Payoff Your Loan No Matter How Much You Still Owe!"
8) The Previously Wrecked Used Car, Sold "As Is" Scam
9) The "Your Bank Bounces Checks" Scam
10) The Forced Credit Application Scam
"Two of the new scams this year are particularly disturbing," said Jeff Ostroff, President & CEO of ConsumerNet, Inc., which runs CarBuyingTips.com. Ostroff said, "Some dealers lie to you that they will not accept your credit union draft or online car loan bank draft because they 'bounce their checks,' and dealers then force you into the dealer's higher APR car loan." According to Ostroff, this causes more credit checks, dragging down your credit score after you already had a legitimate car loan approval. "If banks were really bouncing checks to car dealers, I think we'd know about it through lawsuits, and the national media. In another scam, they force cash buyers, paying in full with bank drafts, to fill out credit applications," said Ostroff. This credit check can also drag down the unsuspecting consumer's credit score.
According to Ostroff, some dealers prey on consumers with bad credit who are desperate to sign any deal. He warns that some dealers force car buyers to buy unwanted overpriced extras such as VIN# window etching, extended warranties, gap insurance, and credit life insurance. Many buyers don't notice these scams on their paperwork until days later when it's too late. Ostroff advises consumers to just walk out on the deal. "These scams can be prevented if consumers know their rights before they sign. We always advise consumers to arrange their financing first and avoid the scams and cash flow shell games of car dealer financing. Car financing is not a service that car dealers perform, it is a product that they sell to you. They have a vested interest in doing everything they can to keep you from bringing in your own financing. If they pull these scams, just go elsewhere." Some of the classic scams are still present this year, along with some new ones. Detailed explanations of these scams and consumer tips for avoiding them can be found at http://www.CarBuyingTips.com.
