Buying a used car is generally a stressful process. If you don’t know what you’re doing, it’s easy to get scammed. Scammers often prey on people who are less experienced with buying used cars in chandler or those who just don’t know better. In general, these scams usually fall under false advertising, bait and switch tactics or outright theft of your money.
Here are some of the most common and most pernicious used car scams you should watch out for when buying a used car.
Scammers often try to trick you into thinking that your car was repossessed by a third party. They will state that they are affiliated with the bank or creditor and offer to release the vehicle back to you. This can be done in person or over the phone. It may involve someone who claims to be a lawyer or police officer. The scammer will tell you that he’s working hard to get you your money back and charges a fee for his services. Don’t believe it—your car was never repossessed by a third party, and this is nothing but a false advertising scam.
The lemon scam is very similar to the repossession scam. The car isn’t really a lemon—it’s just a car that has to go back to the dealer or manufacturer, because it keeps breaking down or defects. You’ll be offered a chance to borrow money so you can fix your car at your own expense.
First-Time Buyer Financing Scam
You’re offered financing terms that are too good to be true (such as “no money down”). The deal seems too good to turn down and can be very appealing. However, in reality you won’t get any of the promised financing—and you may lose your car, because the dealer is selling it without your knowledge or without paying off your previous loan.
Phantom Financing Scam
A more sophisticated version of the first-time buyer scam, in this case you think that you’re getting financed through a bank or finance company. You’re often asked to pay money up front, but you won’t ever see the promised financing.
False Advertisement Scam
In this scam, a dealer may advertise that a car is available at a very low price, but after you visit the dealership you find out that the vehicle has been moved to another location or has some other hidden defect.