Archive for the ‘Auto Dealer Scams’ Category

More Car Dealer Scams To Be Aware Of

By: Neil Teasdale

In one of our previous articles we listed the “Top 5 Car Dealership Scams To Avoid,” but it doesn’t stop there. This article continues with a few other car dealer scams that we’ve heard happening around the car market. Again, there are a lot of credible car dealerships that won’t try these but it’s always a good thing to know these in case you get a dirty car dealer or salesman.

6. The Dealer Mark up Scam

This is an unnecessary fee that the dealer charges for no reason other than greed. This fee can be seen on the orange sticker marked on the manufacturer’s suggested retail price (MSRP). The additional dealer markup is nothing more than requiring more money for no real reason. They can include all kinds of extra fees in the additional dealer markup.

When you see an extra dealer mark up fee, ask the dealer to get rid of it. If they refuse, it is pretty much up to you, but remember that if you do pay the extra dealer markup, you are overpaying for no real reason.

7. The Payoff Your Loan Scam

This is when the dealer offers to pay off the balance of your current car loan no matter how much money you still owe. It is a common sales strategy. When the average buyer hears it, they think that by purchasing a new car with a new dealership, they will automatically owe no more money on their current car. That couldn’t be further from the truth.

What really happens is that the dealership does help you get out of your current contract; however, they normally are forgetting to tell you how high your fees are going to be for breaking the lease agreement with your old dealership. You will now be responsible to pay fees that are in the thousands to make up for it.

You also will not be able to refinance for a new car until those fees are paid. Of course the dealership can add the cost on to your contract with them at a substantially higher rate. The dealership only agrees to this deal because they want to get more money off of your current car. They aren’t really doing anything for you at all.

The dealership will also give you far less then the car is worth on the trade off. Basically this scam works because they will up your monthly fees, and then sell your trade in for a more money than its worth. The dealership then extends your monthly payments so that they can make it appear that you are paying a small amount monthly when you don’t even realize that you have committed to an extra year of payments.

To avoid this scam, you have to bite the bullet and ride out your current lease until the end. If you are really determined to get a new car, then you should try selling your current car on your own. Just sell it so that the buyer just takes over the lease payments.

8. The Used Car Sold “As Is” Scam

This is when a dealership will sell you a car that has been in a car wreck, but they will tell you that the car has been completely refurbished. When you see the car it has a sticker on it that says “as is” on it and no warranty is included with your purchase. This is the dealer’s way of telling you that you can’t bring the car back, you are assuming all risks for the car, and that it is not under warranty.

To avoid this scam, don’t buy a car without a warranty or one that says “as is” on it. By doing this, you might as well buy a car from a stranger on the street with the same deal.

9. The Bounced Check Scam

This is when you walk into a dealership with a bank draft and the dealership charges that they can’t accept your draft because your bank bounces checks often so they now refuse checks from that bank. Of course, this leaves the table open for them to get the extra money they want by offering to sell you a car at a higher interest rate.

You can avoid this scam first by getting your drafts from First Again Auto Finance. Then let the finance manager know that you are aware of the scam that they are pulling and that First Again Auto Finance is in the business of giving loans so the checks don’t bounce.

10. The Forced Credit Application

If you are hoping to pay for a car outright or in cash with a bank draft or check that is what you should do. Some dealerships will not let you. You will hear one of these lines so that they can try and get you into paying monthly terms for more money. “State laws require that you must fill out a credit application before I can sell you this car.” Or “Everyone that buys a car from us fills out a credit application first.” Or maybe “It’s the company’s policy.”

If you hear any of these lies, then know what’s going on. When you are paying cash why would you think that you need to fill out a credit application? It doesn’t make sense. No state will force you to apply for credit when paying cash. Would you have to fill out a credit report if you want to buy a sofa or groceries while paying cash? See how silly this is. To avoid this scam, just laugh in their faces.

If you can identify these scams then you stand a great chance of saving a ton of money down the road on your new car. Stay tuned for our next two posts as we explain some other car dealership scams that have the “Special Offer” tag on them.

About the Author

Get valuable tips and links for car buying online and buy cars online including online car loans, online car insurance, online car auctions, car buying mistakes and car dealer scams to avoid and so much more at Car Buying Online

(ArticlesBase SC #311753)

Article Source: http://www.articlesbase.com/ – More Car Dealer Scams To Be Aware Of

Auto Dealer Scams: Used Car or New Car

By: DealerFraudLawyer

When you are in the auto market and expect to buy a new or a used car, be careful not to get manipulated by a car dealership. This is something that happens more than you think it does. You can protect your money and yourself by avoiding any car dealer scams. Check the basic factors before purchasing your desired car:

• The price
• Warranty
• Mileage

Buyers with a low budget have to buy a used car. That is a good opportunity for them. Some of the new cars are available by the same price, but they haven’t such options like ? AC, stereo etc. As for the warranty, usually the new cars have warranty of about three to ten years maximum. Companies like Hyundai, DaimlerChrysler and others offer maximum ten years of warranty for their new cars. New car buyers have the chance of a different range of colors or car features, which used cars, may not have.

Dealers like you to think they are acting in your best interest, but they are more concerned on how more extra features they can make you want. You need to be careful of several non needed extras. You must make yourself aware of the common dealer traps and tricks they use.

Never buy a car of your dream based only on the image or on your personal feelings. Be practical and sensible. Identify a model that suits your needs. Do not buy a vehicle just because the dealer offered it. Good dealers allow you to take your time to look through the cars.

About the Author

We are an experienced law firm of attorneys specializing in California Lemon Law and Dealer Fraud. Our firm has a simple formula for success ? we hire the best lawyers and staff and make great efforts in helping our clients win. We never give up without a fight when pursuing justice on behalf of people defrauded by commercial entities such as car dealers.

(ArticlesBase SC #2440115)

Article Source: http://www.articlesbase.com/ – Auto Dealer Scams: Used Car or New Car

Auto Repair Estimates And Car Repair Prices – The Real Information To Avoid Car Repair Scams

By: Theodore Olson

Worrying whether or not you were overcharged for your car repair is an awful feeling. There’s tons of advice on how to avoid getting ripped-off, but few discuss the actual car repair prices. We really need to look at the charges on a car repair estimate or auto repair invoice to determine if we’re paying too much.

The focus needs to shift from giving outdated and ineffective advice to addressing the “actual” and “specific” charges. Are they legitimate charges? Can they be justified by industry guidelines?

Now car repair estimates can be confusing. So let’s break it down to get a better idea if your auto repair shop is billing you appropriately.

First, a glossary of terms is in order, as the auto industry has a language of its own…

Aftermarket Parts: parts not made by the manufacturer.

MSRP: Manufacturer’s Suggested Retail Price

OEM: Original Equipment Manufacturer. Manufacturer approved parts designed specifically for your vehicle.

TSBs: Technical Service Bulletins. Notes and instructions provided by the manufacturer for known and specific concerns(they are not recalls).

Flat Fees: services such as alignments that don’t get broken down into parts, tax, labor

Miscellaneous Charges: these can include, but are not limited to shop supplies – rags, chemicals, hazardous waste disposal fees, waste oil …etc.

Labor Rate: a repair center’s hourly charge to service your vehicle

Labor Time: the amount of time or hours determined that it will take to fix your vehicle

Labor Description: the step-by-step written details of repairs and/or services

Ok, let’s look at the Anatomy of an Auto Repair Estimate:

There are six basic components to a car repair estimate

1) Customer/Vehicle Information
2) Parts
3) Labor
4) Miscellaneous Charges
5) Flat Fees
6) Summary of Charges

Customer and Vehicle Information

Using a generic “top down” style estimate, the top portion simply contains your personal information and your vehicle’s specifics: year, make, model, mileage…etc, as well as your request or concern.

We also want find the shop’s labor rate. The labor rate is critical in determining if you paid too much. Most repair centers don’t list the labor rate. We’ll discuss why shortly.

Auto Parts

Parts are listed usually with a brief description, as well as the quantity, and the price. There are three types of parts: OEM (parts made by or for a manufacturer). These are the parts installed by a dealer, although many local shops use OEM parts too.

Aftermarket parts are non OEM parts, and there are various degrees of quality, depending on the brand and where they’re made – China versus USA, for example.

Then there are Used parts purchased from a salvage yard.

To determine if you paid too much for parts, first find out what type of parts are being used. With OEM parts, you don’t want to pay more than MSRP, although most people do without realizing it. Premium aftermarket parts are similarly priced across brands, although beware not to pay more than MSRP, which again, many folks do. Used part prices are all over the place, so pick the price in the middle.

Auto Repair Labor

Labor is billed in tenths. So 1.0 equals 1 hour. 1.5 equals an hour and a half.

Labor rates range from $60 to $100 per hour at local repair shops and $80 to $140 per hour at the dealer level. Labor times are based off established industry guidelines, which are frequently abused.

If you don’t see the shop’s labor rate posted on the car repair invoice, ask your service center for the rate. Repair shops can manipulate the labor rate (among other things) with a labor matrix. Matrix pricing is a complicated and ethically questionable practice discussed at length in RepairTrust literature. What you need to know is that you can pay as high as $150 per hour rather than the posted labor rate of $105 per hour.

To ensure that you’re being charged properly, you’ll want to multiply the number of hours billed (which is also often not posted) by the shop’s labor rate.

Most labor descriptions are poorly written and difficult to understand. So ask questions.

Here’s a “clear” labor description for a 30,000 mile service on a Toyota Camry.

Performed 30,000 mile service per customer request, and in accordance with manufacturer guidelines. Changed oil and filter, installed new air filter, cabin filter and performed all necessary tests, checks, and procedures, including road test (miles 30,123 – 30,125). Performed lubrication services and confirmed proper vehicle operation. Set tire pressures, and checked fluids, belts and hoses. Note: vehicle is pulling slightly left. Needs alignment

Miscellaneous Charges

The bulk of your car repair invoice will be parts and labor, but we can’t forget about Miscellaneous Charges. These charges can include, but are not limited to, shop supplies – rags, chemicals, hazardous waste, disposal fees, waste oil …etc. The latter of these may be billed out separately in a summary at the bottom of your repair invoice.

Very few of these “extras” are actually used during regular repairs. Miscellaneous charges are calculated off the amount of labor hours billed, not the amount of miscellaneous items used.

Flat Fees

Flat fees can be another very tricky area. Flat fees are services, such as an alignment, which don’t get broken down into parts, tax and labor. This makes it difficult to determine the real and fair price. On the plus side, most flat fees are competitively priced.

Be warned however, another term for Flat Fee is called Menu Selling. In other words, you might see Tune Up: $99.99 or Transmission Flush: $89.99. Follow your manufacturer’s recommendations only, not a dealer’s or repair shop’s menu.

Summary of Charges

The last part of an auto repair estimate is the summary of charges. It’s usually found in the bottom right hand corner of the invoice. Check it against the charges above to ensure that it all adds up mathematically, as well as logically.

This basic estimate outline may differ from your particular invoice, which may have other categories such as “Sublet” or “HazMat.”

A sublet charge is added when your auto repair shop uses another vender to fix or repair your car, such as a glass company that replaces your windshield.

A HazMat charge may include waste oil or other disposal fees. Just make sure that the charges are warranted, as again, they too are often calculated off the labor time rather than actual need.

In sum, understanding the “actual” charges, asking the right questions, and breaking down your auto repair costs is the best way to avoid paying excessive car repair prices.

About the Author

Ted Olson is the founder of RepairTrust – a website dedicated to help the auto consumer avoid the pitfalls of the automotive industry. Click Car Repair Prices to learn more…

(ArticlesBase SC #164251)

Article Source: http://www.articlesbase.com/ – Auto Repair Estimates And Car Repair Prices – The Real Information To Avoid Car Repair Scams

Video Description: Learn how to avoid car dealer scams. Car buying tips to help new car shoppers avoid common car dealer tricks and scams. Explains how car dealers use packed payments to overcharge new car buyers. More new car buying tips from CarInfo.com.