How To Avoid Car Dealer Trade In Scams
The basic concept of a trade in sounds like a good idea. You take a car that you currently own and put it towards the price of a newer car, effectively saving money. However, it is important to note that some car dealers are less than honest, and will try to scam customers who trade in their current cars to go towards the price of a new vehicle. Understanding these scams can help save you a lot of money while avoiding potential legal issues.
One common scam that dealers will try is to lure you into trading in your old car for a new car with very low financing. After you've traded in your old car and made a down payment, the dealer will call you back a week or so later and tell you that they will need to increase the price of the loan, and if you can't pay it, you will need to turn in the car. If you decide not to pay the higher price and ask for your old car back, they will tell you that they sold it. People who don't understand the law may be forced into paying a higher loan amount.
The dealer is not allowed to change the terms of a loan after they have sold your trade in. If it happens, demand back your car or the refund along with the down payment. When you trade in your old car towards the price of a new car, there are a number of things to remember. Never hand over your title or the key until the purchase agreement has been signed. Sometimes dealers will not add in the agreement that you traded in your old car, or they will list an incorrect amount. Read over the agreement to make sure the trade in is mentioned, and make sure it is the exact amount the dealer paid you for it.
If you have to go to court, having these terms in the agreement will work in your favor. Avoid car dealers that offer to give you a price for your trade in which matches the value of the loan for a new car. While it may seem like an even trade, the loan is being given by the dealer, and they may find a reason to increase it. Once they increase the price you will have to pay the difference plus taxes. If you have a car that is only worth $3000, and you want to buy a car for $5,000, never trade in your car for $5,000. Only trade it in for the price it is worth.
If you run into a problem with a car dealer, contact your attorney as soon as possible. However, it should be noted that the best way to handle a scam is to avoid it. Having to go to court can be a waste of time and money. Understand the different scams which you'll run into with dealers can save you a lot of money and headaches.
SoutheastDealers.com is a directory of car dealerships and car insurance agents in the United States. Please visit http://www.southeastdelaers.com for more information on car dealers.
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