Car Buying Alerts - Be Smart Car Buying

Car Buying Alerts, Dealer Scams, News and Reports

	T
	*Trade-In Payoff Scam* The current market conditions in the Auto Industry have brought out some of the worst in car dealer scam. We have seen a rise in reports of car dealer scam telling the customer that they are paying off their Trade-in as part of their transaction, but then do not. You, the customer then gets a call from the original lender saying they are past due on their payment from the trade-in. You, the customer says that they traded the car in and the dealer is going to pay off the balance on the car. The lender informs you that you are responsible for the loan and they still owe the amount on the car. The car dealer has parked the car (supposedly your trade) in the back of their lot and never included the vehicle as a trade-in on the paperwork. The result is as you bought a second car. You now have 2 payments and 2 cars. You are responsible for 2 cars and 2 payments. You call the dealer only to be told that your car (the Trade-in) is in their lot and they thought you were going to pick it up weeks ago. You have no recourse with the dealer because it was never part of your paperwork. How Does This Scam Happen? This scam sometimes happens when you are upside down on your trade (owing more than the car is worth). This car dealer scam will present you with a payment than seems reasonable to you and probably close to what you were paying. The reason is seems acceptable is because they have not included paying off your old car. When you question them about the paperwork not showing your Trade-in, they give you a story about the lender wanting it done that way because you are Upside Down on your Trade-in. The dealer only shows one large number to finance. You figure that sounds reasonable and you get a new car. You go ahead and sign the paperwork and get scammed. Scam Results You now own 2 cars and are responsible for 2 payments. (Payment Buyers Always Loose)

How To Protect Yourself
From This Scam
*Most importantly choose a reputable dealer. See How Do I Choose a Dealer
* When going over your paperwork make sure your Trade-in is listed. The year, make, model and VIN . Make sure it shows the agreed amount for your trade and the amount owed that the dealer will be paying off to the original lender.
*I have said it before, but I will say it again. READ, READ, READ your paperwork. DO NOT SIGN any paperwork, contracts or anything that you are not clear and comfortable with. If the car dealer cannot show and explain to your satisfaction DO NOT SIGN.

This scam will sometimes happen when the dealer knows they cannot get you financed for a new vehicle when they include the negative equity of your trade-in. This way they have sold you a car for an inflated amount that you may justify because you think you negative equity is included.

When you return to the dealer to straighten out the situation they ask for your paperwork and there is no trade-in listed. You have been Scammed.

There have also been situations that the trade was included on the paperwork and the dealer is having a rough time financially in this current market and has not paid off your trade-in.
This scam can be a messy situation and can involve late charges, penalties and damage to your credit score. If you cannot get this ironed out with the lender and the dealer quickly you may need to get an attorney involved.

You can also contact:
The Better Business Bureau

or The Attorney General for your state.
You can access the Attorney General for your state at the links provided here.

Note:This is not common place for Car Dealers, this is the old saying of a few bad apples (Car Dealers) ruin the whole basket.

Car Buying Ebook and Audio Click Here!

Car Repair Scams Revealed

Dealer Scams

Joe Slick
Your Host

Bookmark

Car In Dealer Showroom

Auto Lemon Laws

50 State DMV

Car Video Learing Center