“When the car salesperson introduces you to the finance/business manager to do the paperwork, they’re introducing you to the money-extracting machine of the car dealerships and this person is not just going to tally up everything and send you on your merry way in a hurry!
Get comfortable, because this person is going to try and sell you everything from the Brooklyn Bridge to warranties that cover absolutely nothing along with the window etching, pinstriping, rust-proofing, paint sealant, etc., that will only end up siphoning all the money out of your wallet.
This is where the most money is made on just about every deal. Don't be pressured into something you’re not certain you will need. Before you know it, your car payment can quickly turn into a mortgage payment.
These finance people all work on commission and to make their quota they must sell on average $900 to $1,200 in accessories, as well as bump up your interest rate to total somewhere around $3,000 in extra profit. So guess why it takes so long to sign everything. They must go through their mandatory pitch.
They will try to make it sound like if you don’t take these coverages, you may be at risk of forking out thousands of dollars if something goes wrong.
Another way they try to convince you is to tell you, ‘You don’t have to pay for it all upfront. You can conveniently put it in your monthly payment to spread out the cost for only a few dollars more.’
This is when they jack up the cost without you knowing, in some cases making you pay almost double! Save yourself some time and money. If you really want these extras, you can easily buy them on the outside for a fraction of the cost.
Price is always key to buying a car, but if you don't have to know how to go about it the right way it's very easy for car dealers to steer you in the wrong direction.
Buyers should use tools that help them uncover the TIP or True Invoice Price, rates, and hidden incentives dealers try not to disclose. These amounts can save buyers hundreds to thousands of dollars below the actual invoice price.
Here are some fake fees that often get added unnecessarily to car transactions:
Documentation fees $100 to $800+
Processing fees $200 to $700+
Delivery fees $300 to $1,000+
Destination fees $500 to $1,300+
In addition, high-interest rates can also be a scam, forcing you to pay more for your car than it is worth.”
Frequently Asked Questions: Car Theft, Purchases, and Repairs
When it comes to car fraud and scams, a lot of people have questions about stolen vehicles. After all, a customer may unwittingly buy a stolen car or a car with stolen parts. Read on to see what the most common questions are about car fraud and stolen vehicles.
#1 – What state has the most stolen vehicles?
California. As one of the largest states in America, it makes sense that California has the most stolen vehicles. With so many drivers in California, there are plenty of cars for thieves to snatch.
#2 – What city in the US has the highest rate of car theft?
What city has the most carjackings? In our study of the 10 most stolen cars in America, we found that the metropolitan area with the highest rate of car theft was Albuquerque, New Mexico.
#3 – How many days do you have to cancel a car purchase?
You should always check the contract you sign, as it will state how many days you have to return the vehicle if there's a major issue (usually 2-3). You may have to pay extra to add this return period to your contract.
Asking about the car's return policy is vital, as a car starts losing value the instant you drive it off the lot. If you miss the return window, the car will be worth less than what you bought it for.
#4 – Why do car dealers rip you off?
Car dealers try to rip customers off to earn more in profits. They may try to pressure you into buying unnecessary services or signing up for a high interest rate. It's important to remember there are plenty of cars and plenty of dealerships that have better prices.
If you feel pressured, walk away, especially if you live in one of the most scammed states in America.
#5 – Can you sue an auto repair shop?
You can sue an auto repair shop if the work they did was defective and caused injury to you or other people. It is best to talk to a lawyer to see if you have a case before embroiling yourself in suing an auto repair shop.
Methodology: Finding the Worst States for Vehicle Fraud
To find the states with the most vehicle-related fraud, our team of researchers looked at 2020 FTC data released in 2021.
Since the FTC only listed percentages, not the exact number of auto-related fraud cases by state, our team calculated the number from the listed percentage and the total number of fraud cases for each state. This allowed us to get an accurate number of auto-fraud cases for each state rather than using percentages.
Because larger states with more residents will naturally consistently rank first as the worst states for auto fraud, our team pulled resident data from the United States Census Bureau to calculate the rate of auto-related cases per one million residents. This allowed for a more accurate depiction of which states have the highest rate of auto-related scams.
Regardless of where you live, it's essential to keep an eye out for suspiciously high pricing and shady contracts. If something seems off to you, don't use the shop or buy the car. It's better to have to spend some more time shopping around than being scammed out of your hard-earned money.
References:
Read the complete article from the link below
https://clearsurance.com/blog/worst-states-for-auto-related-fraud
Links that will help you get through the car buying, servicing, and insurance process a little easier
https://www.autoinsurance.org/best-insurance-providers-telecommuters/
