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Car Dealer Scams
- By David Maillie
- Published 04/18/2007
- Various Scams
-
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If you are looking to buy a car then you might think the safest place to buy from is a car dealer, since they should be the most knowledgeable and trustworthy people to buy a car from. However this is not always the case, some car dealers are out to make a fast buck and so will try anything.
Many people know what car sales men are like, and so hate the experience of buying a new car. Of course not all car dealers are the same, it is just unfortunate that there is no easy way to differentiate them.
Sometimes when you buy a car the dealer will charge you for the advertising fees twice, because they have already been added to the invoice the dealer received. To beat this one ask about advertising fees demand to see a copy of the invoice if you are not completely satisfied. They will usually also add a bogus processing fee of from $100 to more than $500 (the processing fee is pure profit for the car dealer that he does not have to pay any commission on to salespeople).
Cars are like any other consumer product, the more desirable it is the more somebody is willing to pay for it. Some dealers add on additional fees on top of the prices of the cars if they are very popular, this is not completely unfair as it should help to even the demand and supply functions
out. However you should never pay over the MSRP of the car or even close to the MSRP, if the car is more highly demanded then the maximum you should pay is the MSRP (or better yet wait a few months until its popularity wains and buy it at invoice).
Some dealers quote a certain figure in an add for a certain car, but when it comes down to it the actual price is much higher than this (you may not be able to get one with no options, etc..). Make sure that you continually ask the dealer exactly what you are paying for and the exact price so that they realise that you are not going to take any messing.
When trading in your car there are also cons to be aware of, some dealers will quote figures when you are outside, but by the time you get inside these figures have vastly shrunk - or better yet, they will switch you to negotiating payments where you have no idea how much total you will end up paying and they will break it down as its only $25 a day, etc.... (Lets see, $25 a day is $750 a month and that is $9000 a year and $45,000 over a typical 5 year car loan - it adds up very fast and that may not include interest and compounding of principle! Lets say you only over pay by $5 a day - that doesn't sound too bad and the dealer seems like a really nice guy, right? $5 a day is $150 a month, is $1800 a year, is $9000 over 5 years too much you paid! Think about it).
Many people know what car sales men are like, and so hate the experience of buying a new car. Of course not all car dealers are the same, it is just unfortunate that there is no easy way to differentiate them.
Sometimes when you buy a car the dealer will charge you for the advertising fees twice, because they have already been added to the invoice the dealer received. To beat this one ask about advertising fees demand to see a copy of the invoice if you are not completely satisfied. They will usually also add a bogus processing fee of from $100 to more than $500 (the processing fee is pure profit for the car dealer that he does not have to pay any commission on to salespeople).
Cars are like any other consumer product, the more desirable it is the more somebody is willing to pay for it. Some dealers add on additional fees on top of the prices of the cars if they are very popular, this is not completely unfair as it should help to even the demand and supply functions
Some dealers quote a certain figure in an add for a certain car, but when it comes down to it the actual price is much higher than this (you may not be able to get one with no options, etc..). Make sure that you continually ask the dealer exactly what you are paying for and the exact price so that they realise that you are not going to take any messing.
When trading in your car there are also cons to be aware of, some dealers will quote figures when you are outside, but by the time you get inside these figures have vastly shrunk - or better yet, they will switch you to negotiating payments where you have no idea how much total you will end up paying and they will break it down as its only $25 a day, etc.... (Lets see, $25 a day is $750 a month and that is $9000 a year and $45,000 over a typical 5 year car loan - it adds up very fast and that may not include interest and compounding of principle! Lets say you only over pay by $5 a day - that doesn't sound too bad and the dealer seems like a really nice guy, right? $5 a day is $150 a month, is $1800 a year, is $9000 over 5 years too much you paid! Think about it).
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1 Response to "Car Dealer Scams" 
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said this on 15 Jun 2008 7:51:55 PM CST
STL Motor Group - Con Exposed
June 12th, 2008 WARNING TO CONSUMERS There are a number of websites now set up on the Internet dedicated to warn unsuspecting people of those businesses who are involved in either: false, deceptive, or misleading conduct and/or involved in unconscionable behavior in their business dealings. This website is set up as a warning to potential purchasers of cars from STLMOTORGROUP who operate out of St Louis, Missouri. In Australia we have a word which I don’t know whether it translates into the American vernacular so well, the word is “shonky”. This is also how a number of past customers (whom I contacted) regard the STLMOTORGROUP of St Louis, and its Owner/Manager (who calls himself Jay). BEFORE YOU CONSIDER PURCHASING A CAR FROM JAY OR STLMOTORGOUP, ST LOUIS – beware of the following practices (based on my experience in importing a lot of 3 cars, and on confirmation of other customers (I think the American term is “suckers”) who have also purchased on Ebay with disastrous results). These practices include: * Takes wonderful photos of cars that are posted on the Internet, especially Ebay and when you get the car you wonder whether it is the same car or not (guess what?) * Fabulous photos of log books, car history, service records etc. Nice pics but surprise surprise they don’t arrive with the car – this is a stock photo that is used to fool unsuspecting buyers as to the ‘sound history’ and upkeep of the car’ * Misrepresents the state of repair of the car – The three popular descriptions used in cars are FAIR (suitable for restoration but most of the parts are there), GOOD (good running order, with an exterior and internal trim in a good state of repair consistent to the mileage and age of the car; or: EXCELLENT – generally meaning immaculate or near showroom condition. Beware of claims from STLMOTORGROUP cars in “excellent” or even “good” condition. Read this as “fair”, if you are lucky. * Says will “upgrade the wheels”, and make other promises – but again, fails to deliver on promises. * EBAY BUYERS be particularly aware of this one – Jay, says when the car has been shipped can a positive note be left on Ebay as a satisfied customer “so he can get his commission”. Don’t be conned, Jay is the owner and just wants to lock you out of placing a NEGATIVE in his Ebay. This is my initial listing to urgently alert as many potential buyers as possible, I will shortly upload some pics to illustrate what I mean. In the meantime, list on the blog your dealings with STLMOTORGROUP. GP Sydney, Australia. This site has been set up as a community service - http://stlmotorgroup.net/ |

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