4 Used Car Dealer Scams and How to Avoid Them

To say that there are a lot of used car dealers in Charlotte, North Carolina would be an understatement. A quick search on Google Local bags about fifty results, and it certain that the real world numbers are much higher. Used cars have always been popular here in Charlotte, but even more so in recent years due to the economic downturn when people had less expendable income and lower credit scores. Considering that a well-maintained vehicle with less than one hundred thousand miles on the odometer  that is only a few years old can save a potential buyer two to three thousand dollars when compared to a current model it’s easy to understand the appeal.  But for every used car dealer with a good reputation and customer service record there is another looking to make a quick dollar at the customer’s expense. Here are some things less than honorable used car dealers may do to get over on you, the unsuspecting customer, and of course how to avoid them.

Odometer Fraud

This is in fact the oldest trick in the book. It’s certainly the most widely known but sadly it’s also the probably the most prevalent. With the most basic engineering abilities a unscrupulous car dealer can simply turn back the odometer, making a high-mileage vehicle appear to have much less miles. The benefits to this are obvious. A lower mileage vehicle will on average be of much higher quality and less likely to break down. Obviously this means that a lower mileage vehicle would be worth much more which is obviously the point. The only sure fire way to avoid this is to pull up a detailed CarFax vehicle history report before you decide to buy.

Curbstoning

This is, believe it or not, a fairly common practice. Curbstoning is when a used car dealer will pose as a private individual looking to sell a car that they own, usually to skirt past regulations from the Federal Trade Commission or some other government body. It’s actually become very popular since this practice is fairly easy to do online. While it may seem to be harmless at first glance that fact is that dealers usually do this with cars that they couldn’t sell legally otherwise. This simply means cars that have extensive and costly damage which can be invisible to the uneducated buyer. The result is that you are swindled out of your hard earned money yet again by someone selling an inferior product. The only way to fight this is to yet again obtain a vehicle history report.

Yo-Yo Financing

This scam doesn’t deal with the vehicle at all but rather the way you pay for it, and is targeted at anyone who has bad credit, which many people now do. Yo-Yo Financing is when the salesman convinces you that your credit is approved for a certain amount during the sales process. Days or perhaps even weeks after you have brought your new car home the dealership calls to inform you that your financing didn’t go through and you have to be refinanced at a much higher rate. Oftentimes your previous vehicle will already be sold or scrapped to provide you additional reasoning to keep your new vehicle. The reality is that now you are stuck with a vehicle for several years that you now have to pay an insanely high interest rate on and of course the dealer ends up making money hand over fist. How to avoid this is by simple awareness. Make sure that your financing is completely finalized before you make your purchase, and don’t get sidetracked by any of the salesperson’s parlor tricks.

VIN Cloning

VIN cloning is the replacement of the Vehicle Identification Number on the actual vehicle with another one. Traditionally this was done to cover up the fact that a car was stolen, but more and more dealers are doing this so that they can present a Vehicle History Report of a car that is in better condition and that has lower miles. The way to avoid this all you have to do is simple detective work. The VIN is physically located on a car either on the driver side of the dashboard making it clearly visible through the windshield or on the bottom of the driver’s side door jam. Wherever you find it make sure it matches up with the VIN on the vehicle title, registration, and history report and that it hasn’t been tampered with.

There you have it. These are four common scams that used car dealer try to push on unsuspecting customers and who to avoid them. So no matter where you may go for your next used car here in Charlotte you will be ready and prepared. Or conversely you can come to Crown Auto Sales and Finance, where we always treat our customers fairly. Happy hunting!