A checklist of the important things you should NEVER do, and the important things you should ALWAYS do in order to avoid dealership scams.
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NEVER
- Tell a dealership salesperson what monthly car payment you are seeking.
- Agree to purchase a vehicle you know you cannot afford – do not stretch your budget.
- Feel trapped at a dealership when negotiating to purchase a vehicle – you can walk away (go get food, take a walk, pick up your kids from school, go home and think about the decision).
- Let the dealership tell you what car you can buy.
- Buy a vehicle that is sold “As Is.”
ALWAYS
- Negotiate – negotiate the price of the vehicle, not the monthly payment.
- Interest Rate – try to get a lower interest rate from your personal bank or a credit union. You do not have to use the dealership’s financing option.
- Research – run a CarFax Vehicle History Report, read online reviews about the vehicle, ask about the ownership/accident history of the vehicle.
- Inspect – have a used vehicle inspected by a third-party prior to purchasing it.
- Walk Away – from the deal if you are unsure about the purchase.
- Read – carefully read everything you sign. Make sure the terms of the car loan and your payment are what you agreed to.
- Decide – decide if you want any aftermarket products (tire protection, interior protection, windshield protection, service contract, pre-paid maintenance plan). These are expensive and are OPTIONAL to purchase. A dealership cannot make you purchase aftermarket products.
- Confirm – confirm the car comes with a warranty and is not being sold “As Is.” This information is contained in a document the dealership must provide you, the “Buyer’s Guide.”
Related Topic about Dealership Scams
In December 2023, after much lobbying by consumer advocate groups across the country, the Federal Trade Commission (“FTC”) announced the “Combating Auto Retail Scams Rule,” otherwise known as the “CARS Rule.”
