car buying tips & dealer scams (sticky please) and rep me

[LordHysider]

Scam #1: The "Double Dip Advertising Fee" Scam

How the scam works: Dealers slip in an advertising fee on the vehicle contract. Cars are no different from any other product so it is ok for the advertising expenses to be built into the price of the car. So you ask, why is this the #1 scam of 2005? Most of the time, if this fee is added on to the vehicle purchase contract, you have just allowed the dealer to "double dip" and charge you for advertising twice. If you look at the factory invoice, in most cases, there will be advertising fees on it. The dealer has already taken this into account when negotiating your purchase price. Now, they are charging you again and making themselves pure profit.

How to avoid the scam: Have the advertising fee removed from your contract. If the dealer claims that the factory doesn't charge them an advertising fee on the invoice, make them show you the invoice. If there is no fee on the invoice (unlikely) then it is OK for the dealer to charge between 1% and 3% of MSRP for an advertising fee. Keep in mind that if the fee is not charged by the factory, it is 100% negotiable just like any other part of the deal. Unfortunately, advertising fees that appear on the factory invoice are considered part of the dealer cost and are not negotiable.

Scam #2: The "Market Adjustment Fee" Scam

How the scam works: Same old scam, new name. In the past, we've reported about "Additional Dealer Markup" or ADM. The new name of the scam seems to make the dealer think they can add even higher amounts to the MSRP. Dealers have recently been adding "Market Adjustment Fees" of several thousand dollars on "hot" vehicles. Some real examples are $7500 on the 2005 Corvette, $10,000 on the Chevrolet SSR, and $10,000 on the 2005 Ford Mustang GT. These are bogus charges added by greedy dealers. It usually appears on an orange sticker next to manufacturer's MSRP sticker. I call it Arrogant Dealer Markup. No matter how "hot" a car is, it is not worth paying over MSRP. ADM (or "Market Adjustment) gives the dealer an artificial buffer to bargain down the price, or worst case, it gives them more icing on the cake when they are already selling you a hot car. In 2001 when Honda Odysseys were in such hot demand, car buyers were paying $2000 over MSRP, thanks to bogus ADM fees. Honda dealers also had the audacity to charge people dealer prep, ad fees, and throw in overpriced extras like $350 Window Etching, and $300 Scotch Guard. The VINetcher Do-It-Yourself VIN Etching Kit is only $19.95! If you bought a new Odyssey or PT Cruiser in 2000 or 2001, you really had the screws put to you. If ADM is $2000 and you talk them down $800, you still paid $1200 too much! One reader bought a Honda Civic and the dealer tacked on a $1995 ADM! Luckily she got them to drop it. "Trade in buyers", who only care about what they are getting for their trade in, fall for this one a lot, because they don't concentrate on the entire deal. The dealer gave them an extra $1000 for their car, an now they are so euphoric they don't see the $2000 ADM. The dealer just sold them a new car for MSRP, got their $1000 back, and made another $1000 off the buyer. In April 2002, our local Mercedes dealer had an ADM sticker of $20,000 on the 500 SL Convertible, when there was an 8 month back log.

How to avoid the scam: NEVER PAY MORE THAN MSRP FOR A CAR. You must realize that when you sell the car later, the market value is based only on a depreciated value from MSRP, not MSRP + Extra Markup. A future buyer of your car could care less that you paid $2000 over MSRP, because vehicle depreciation pricing only accounts for the MSRP.



more to come

[LordHysider]

Scam #3: The Financing Fell Through Scam (Spot Delivery Scam)

How the scam works: Also, known as the "Yo-Yo". Lots of people email us about this scam. You trade in your old car, and the "LieNance" manager says you got a good APR, hands you the keys, and you drive home. Two weeks and 500 miles later, they call you saying "Sorry, you didn't qualify for the interest rate we signed you up for". This is where "subject to financing" clauses on contracts bite you in the butt. Everyone thinks that you sign papers and drive off and the deal is done. But it's far from done. They knew what you qualified for before you signed, unless you lied about your income. Otherwise they'd never let you drive off with the car.

They knew your credit score. If it's above 680, you'll get a low APR. If it's below 680, expect a higher APR. Your credit union will print your credit history and approve you in 10 minutes. So why the problems with the dealer's lender? There usually is no problem, it's a scam. There is a phrase on most buyers orders stating "subject to loan approval". This Jedi mind trick means: "The deal is not final, even though you signed this contract." They'll tell you that you must produce an additional $1000 AND your payments would go up $50/month. They pull this scam on people with bad credit, because it's believable. They get the least resistance from this crowd. If they pull this scam on smart people like you and me, they'd get nowhere with it. So why would they tell someone with bad credit that they got them 6% APR when they knew the buyer would not qualify for under 18% APR? To sell the car!

How to avoid the scam: This one is very simple to avoid. DON'T FINANCE AT THE DEALER if you have bad credit. Try to arrange your own financing then see what the dealer has to offer. If you have good credit, they usually don't pull this scam. Read our chapter on How to finance your car or use a credit union instead. By bringing in your own financing, you won't have to endure all the monthly payment quotes and scams, and the deal will be conducted the way it's supposed to be: based on the selling price of the car, not based on the monthly payment. The minute they start negotiating the car by monthly payment, it's time to leave, as fast as your little feet can move you. They are trying to condition to you as a monthly payment, while shielding you from the actual selling price. But if you do finance through a car dealer, leave a deposit on your credit card, and do not take delivery of the car until the loan has been approved in writing. Once that happens, you know the lender has accepted your loan and processed it. Sure they hand you the keys and say it's all right to drive off right now with the car, but don't do it. For other buyers the dealer will tell them on a lease, that the dealer made a mistake and you need to come back in and resign a new contract. And gosh golly, your new monthly payment will be higher. If your purchase was a lease, then it's a contract, and the dealer cannot make you undo a contract. Just think, if you tried to get out of lease, they would come after you in court right?

What to do if this scam happens to you: If you are sure that you at least got a decent price on the car based on what you learn on this site, then your best solution is to preserve your deal, by doing what you should have done in the first place; get your own instant financing online. If you have a credit score over 650, go online right now to Capital One Auto Finance or E-LOAN and apply online, and get approved within the hour. They will FedEx you a check, which you'll have the next day and take that to the dealer to pay for your car, now you have a guaranteed car loan and the lender will not call you 2 weeks later to say it financing fell through! If your score is below 650, then apply through AutoCreditFinders instead. If the dealer says they won't take the checks because "the checks from online lenders bounce" they are lying, and just trying to railroad you into their profitable financing. You should then get out of that deal.

Scam #4: The "Lie To The Customer About Their Credit Score" Scam

How the scam works: This is one of my favorite Jedi Mind Tricks. The Lie-nance manager lies to you about your credit score, telling you it was really low, so you now have to pay a much higher car loan interest rate than you thought. This scam is pulled on people with good credit too. It's funny, most people know their own cholesterol levels, but they don't know their own credit score.

One buyer told us his score was 780 (Excellent) from 3 credit bureaus. At the car dealer he filled out a credit application. Four finance people came out with "concerned looks" and a paper that said "credit score" on it with the number 580 circled in red. They stated they could only get him financed at 10.9% APR, not the special 0% interest rate. He pulled out his own credit score with 780 and asked why the dealer was different from his Equifax credit report. Three sales guys scattered, the last guy lied, saying that "credit agencies display better credit scores to consumers than to businesses". Our friend bought his car elsewhere with the low 0% advertised APR. Quite often car buyers are suckered into paying a much higher APR by dealers.

How To Avoid The Scam: No salesperson should know more about your credit history than you. If they pull this scam, pull out your credit score and put a stop to it. This is why we stress that you should have your financing 100% lined up before you buy your car. Then give the dealer a chance to beat your best car loan quote. If they pull any funny business, pull out your bank draft from your previously lined up car finance institution, or just leave. Read our chapter on Auto Loans Tips & Scams for tips on getting your credit score and online car loans.

[LordHysider]

Scam #5: The "Your Online Lender Bounces Checks" Scam

How the scam works: The dealer sees that you brought a bank draft from your credit union, or one of the finer online car finance sites such as Capital One Auto Finance, E-LOAN or Lending Tree. Not wanting to miss out on the extra gravy provided by selling you on the car dealer's financing, they refuse to take your bank draft, lying to you that your "bank bounces checks." They will say "we no longer take checks from them, their checks always bounce". But gee, the dealer is willing to provide you financing, though at higher APR.

Some salespeople stop at nothing. If your bank really bounce checks, we'd hear about it via federal investigations, like the morons from Worldcom, Adelphia, and Global Crossing. I get daily emails from people who financed with E-LOAN and Capital One Auto Finance with no problem. My friend financed 2 used cars with Capital One Auto Finance. Another financed his house through E-LOAN. Besides, E-LOAN wires the money directly to the dealer's bank account, so it's impossible to "bounce a check". There's nothing wrong with dealer financing if they can beat your best APR. If not, you should use your financing. Unless you qualify for a manufacturer's 2.9% financing, your online banks will beat the local banks used by dealers most of the time, and online lenders often beat your credit union rates too. Regardless of their reasoning, if they refuse to take your online financing, you can just refuse to buy the dealer's financing... and the car too!

How to avoid the scam: Ask the lie-nance manager what bank they use for car loans. When they tell you, say that you refuse to do a loan with them, you heard they bounce checks. Then point out to the finance manager that you're onto their scam, online banks have been in business for years and are in the business of writing loans and not bouncing checks. Then get up to leave. There is no reason for you to pay a higher APR, when you are already approved at a lower APR. You should also file a complaint with your state Attorney General's Office, because we need to make this scam illegal for dealers who force you into higher APR financing. I get emails on this scam daily, and if the state attorneys do not know this is going on, they can't help us consumers. The federal government should wrap this into the Truth In Lending Act. Here's our link to all 50 Attorney General's Offices.

http://www.carbuyingtips.com/attorney-general.htm

[LordHysider]

http://www.carbuyingtips.com/scams.htm
^
click there for the rest

[Dominic Bones]

good looks

[iLLweezy]

Only In America. LMFAO!

[murderah]

come 2 hialeah so i can beat u down homo.

[Nebz]

Good Post...Im gonna stick this

[LordHysider]

Originally Posted by murderah

come 2 hialeah so i can beat u down homo.

???? fuck u rappin about, get ya weight up, lame, i love how everyone's a thug online.

[agentspits]

nice post

[G1M1Cs]

^^word

[Ryder]

goood shitt...

[Urbakeralse]

Hi there group, what's the news tonight?

Somone here want to talk about the news?

What's a good topic here to disucss?

I'm a new member here so just want to say hi.

[DeenseFup]

Hello everyone!
I would like to burn a theme at this forum. There is such a thing, called HYIP, or High Yield Investment Program. It reminds of financial piramyde, but in rare cases one may happen to meet a company that really pays up to 2% daily not on invested money, but from real profits.

For quite a long time, I make money with the help of these programs.
I'm with no money problems now, but there are heights that must be conquered . I get now up to 2G a day , and I started with funny 500 bucks.
Right now, I'm very close at catching at last a guaranteed variant to make a sharp rise . Turn to my web site to get additional info.

Hey, you can earn up to 3% DAILY!