Whether you are buying from a dealer or privately, a car purchase is a significant investment. And while a car purchase can be enjoyable and exciting, it is important that you do not handle the process too casually if you are shopping for a used vehicle.
Most car dealers know how to treat their customers respectfully and decently. However, it is not uncommon to find few car dealers who employ shady tactics to make a sale. Learning how to spot and avoid these shady dealers can make your car-buying experience smooth and exciting, as you would love it to be.
Here are three tips that can help you avoid car dealership scams:
1. Do your homework
Not all car dealers are out to rip you off your hard-earned money. It is important that you have a clearer idea of the fair market price of the car you are looking to buy before reaching out to the dealer. Be sure to shop around too. Remember, one dealer’s markup can be remarkably higher than another’s.
2. Have a prearranged financing
Generally, car dealerships earn an extra commission each time they help a buyer finance a car purchase. It would be a great idea if you would visit the dealership with a pre-approved loan from your preferred lender. That’s the best way to get a good deal.
3. Know when to walk away
Sometimes, a dealership may demand that you pay extra for car financing through their appointed lenders. Should you encounter this, take a walk immediately.
You should also be prepared to walk away if you encounter a dealer who pushes you to buy more than you can afford or one that makes you uncomfortable about a “deal” in any way.
Shopping for a used vehicle can be fun. However, dealer fraud is a real problem, so the savvy shopper knows to be careful.