How to avoid the 5 most popular car buying scams

Charging a deposit to hold the vehicle

Dealerships use deposits to finalize a deal subject to funding from a lender or a cheque. Most dealerships employ a policy that states that the vehicle can be sold to anyone unless there is a deposit to hold the vehicle. If you are buying a vehicle you need to consider that the dealership has other salespeople, and those salespeople might have customers interested in the car you are considering purchasing. If you don't want to put a deposit on a vehicle ask them if they will still hold it for you. and if you do put a deposit on a vehicle ask them if it is refundable if you decide not to purchase.

This scam is: BUSTED

Switching from new to used

While this is true that certain vehicles might have a bonus to sell it, a salesperson usually switches from new to used or vice-versa because it has a better benefit to you. For example if you were looking at a new vehicle that was $5000 and $50 b/w over your budget and I mentioned we have a pre-owned one just like this that is $5,000 cheaper and I ask if you would like to take a look at it, that solution was offered to help you stay on budget. Or on the flipside, I might mention to you that you could get into a brand new one for only $5,000 more and your payments would only go up $50. If you wanted to bump your budget in exchange for a brand new car with a full warranty, I certainly wouldn't stop you.

This scam is: BUSTED

Tricking You Into a Lease

It is impossible to trick someone into a lease. A lease usually will have a lower payment and is a great alternative for certain buyers. But when you are signing paperwork agreeing to buy the car it will be clearly disclosed to you the terms of the purchase. If you are financing, your terms will include an interest rate, length of the loan, payment and payment frequency. If you are leasing your terms will include a length of the lease, payment, payment frequency, kilometer limit and residual value of the vehicle after the lease as well as conditions like what happens if you damage the vehicle. If you read the paperwork, you cannot be scammed.

This scam is: BUSTED

Including Rebates in Negotiated Price

This is not a scam as when you actually sign the agreements to purchase a vehicle you sign an itemized list of costs which will include the MSRP of the vehicle, any rebates, and discounts applied to it as well as other items like the value of your vehicle, down payment, etc. Every store operates differently and some don't itemize the MSRP & Rebates on the initial quotes but because of disclosure you sign, you cannot be scammed from this.

This scam is: BUSTED

For more Tips on Car financing check out Dodge Hero's Blog

Or read our definitive guide on how to buy a vehicle with bad credit