3 Bad Credit Auto Loan Scams - Don't be a Putz!
BEFORE you visit any car dealer to make a purchase, at least review these common dealer scams. Some are more common than others but they've all been used on naive bad credit buyers enough to warrant some attention.
NOT ALL DEALERS will try these - in fact most won't - but it's better to see an auto purchase scam and REALIZE it BEFORE it happens rather than figure out out you've been ripped off weeks later...
Why do we call them "bad credit auto scams"?
Mainly because all unscrupulous auto dealers KNOW that bad credit buyers offer the LEAST resistance to price and interest rates. Bad Credit borrowers EXPECT poor treatment because they believe they have very limited loan choices, therefore making themeselves open to many of these dealer scams.
1. Spot Delivery Scam - Overview
SUMMARY: Dealer sells you the car, you drive off the lot. 1 week later the dealer calls to say the "financing fell through". The dealer insists you owe an additional $750 cash plus the interest rate will increase on the 5 year loan. Read the full scam: Spot delivery scam
2. Sold "AS Is" Scam - Overview
SUMMARY: When you purchase a used vehicle "As is" you are agreeing that you expect NO warranty. Dishonest dealers will many times hide accident damage that will cause major mechanical failure down the road. Never sign an AS IS warranty! Here's why... Read the full scam: Sold "As Is" scam
3. Phony Credit Score Scam - Overview
SUMMARY: When you purchase a used vehicle "As is" you are agreeing that you expect NO warranty. Dishonest dealers will many times hide accident damage that will cause major mechanical failure down the road. Never sign an AS IS warranty! Here's why... Read the full scam: Phony credit score scam
Useful Auto Tips
An Auto insurance policy is a safe guard for consumers that shields private passenger carrying automotive vehicle owners from monetary losses if a vehicle they own is involved in any type of accident. An agreement, contract, or policy formed when a consumer and an insurance company establish specific protections involving vehicle ownership.