Car Buying Scams to Avoid

Don't Get Suckered In

Car salespersons have a reputation, and it is not rightly deserved for most of them, but the fact is that there are still plenty out there who excel at what they do – they and the dealerships they work for – by relying on tactics that are often less-than-honorable and sometimes downright illegal. You should be forewarned and educated about some of these tactics before you go shopping in order to avoid being taken in by them.

Bait & Switch Ads

Bait and switch is a sales tactic where an advertisement is made for one item at a certain price, but whenever anyone comes in seeking to purchase it, that item is no longer available and the salesperson will seek to sell you something “similar” at a higher price. It used to be that bait and switch deals were performed by placing ads for items they never had at all, but this was made illegal in all 50 states.

Unfortunately, many auto dealerships in Alabama get around the illegality of bait and switch by advertising a vehicle – a specific vehicle that they actually have, at a dirt-cheap price and making it seem as though all vehicles of that type are selling for that price. Needless to say, when a customer comes in, that vehicle is no longer available or has been sold and ”since you drove all the way out here, why don't you look at these other cars we have instead…”

Don't fall for cars that are advertised at dealerships at dirt-cheap or impossible prices. The old adage of “if it looks too good to be true, it probably is.” If you are temped at all with such an ad, call the dealership directly and ask how many vehicles they have remaining at that specific price. Odds are, they won't have any, or if they do, make sure you find out what features it has, because it has probably been stripped of any useful features besides the basic heating system and an am/fm radio.

0 down, 0% financing

What they don't tell you when advertising 0 down, 0% financing on vehicles is that this deal is only available to persons with immaculate credit scores (at least a 720 or more). Anything less and you will receive a standard financing option. If you go to a dealership that has advertised such a deal, after you get hooked on the car you want and give the salesperson your social security number in order to pull your credit, they will very likely come back with their head hanging down, looking a little disappointed and tell you that they just can't offer you that deal…but they can offer you…

Negotiating a Lower Payment for a Longer Loan

This is something that many people drive themselves to when they are shopping for a car, but which dealerships are usually only too happy to comply with. Being stuck on having a low monthly payment at a certain amount leaves a salesperson a lot of leeway to offer you an auto loan that can last as long as 7 years in order to make that amount possible. This is never, ever financially a good idea. The shorter-term your auto loan is, the better off you are for paying it off without giving away copious amounts of money in interest. If you have any inquiries, please visit our Frequently Asked Questions page.