Common Car Dealership Scams to Avoid

Common Car Dealership Scams to Avoid

Deceptive Advertising

When searching for a new car, it is important to be wary of deceptive advertising tactics used by some car dealerships. One common scam is the bait-and-switch technique. Dealerships may advertise a particular car model at a very low price to attract potential buyers. However, when customers arrive at the dealership, they are told that the advertised car is no longer available or that it was a mistake. The salesperson then tries to sell them a more expensive vehicle. To avoid falling for this scam, always call ahead to confirm the availability and pricing of the advertised car before visiting the dealership. Don’t miss out on this external resource we’ve prepared for you. You’ll find additional and interesting information about the topic, further expanding your knowledge. Sioux City Dealerships

Common Car Dealership Scams to Avoid 1

Hidden Fees

Another common scam that car dealerships employ is the inclusion of hidden fees in the final price of a vehicle. These fees may not be disclosed upfront and can significantly increase the overall cost. Some dealerships may add fees for “dealer preparation,” “documentation,” or even “advertising.” To protect yourself from this scam, carefully review the contract and ask the salesperson about any additional fees. It is advisable to negotiate the final price of the vehicle including all taxes and fees to avoid any surprises later on.

Unwanted Add-Ons

Car dealerships often try to sell unnecessary add-ons and accessories to increase their profits. These add-ons can include extended warranties, fabric protection, VIN etching, or paint sealants. While some of these add-ons may be useful, it is essential to thoroughly research their value and necessity before making a purchase. Oftentimes, these add-ons are overpriced and may not provide significant benefits. Be cautious and only purchase add-ons that genuinely meet your needs.

Undervaluing Trade-Ins

If you plan to trade in your old car when purchasing a new one, be aware that some car dealerships may undervalue your trade-in vehicle. They do this to minimize the amount they have to offer you for it and increase their profits. To protect yourself from this scam, conduct thorough research on your trade-in vehicle’s current market value before visiting the dealership. Get quotes from multiple sources and be prepared to negotiate with the salesperson to ensure you are receiving a fair trade-in value.

Forced Financing

One tactic car dealerships may use to scam customers is by forcing them to finance the purchase through their in-house financing department. They do this by claiming that the financed deal is the only option available or by offering a significantly lower price if the customer agrees to finance through them. However, these financing deals often come with high-interest rates or unfavorable terms. To avoid falling for this scam, arrange for your own financing before visiting the dealership. This way, you can compare rates and terms from different lenders and choose the option that suits you best. For an improved comprehension of the topic, make certain to visit this expertly curated external source. Sioux City Chevrolet, it’s filled with worthwhile details to enhance your reading experience.


Car dealership scams are unfortunately quite common, but by being aware of some of the most prevalent tactics, you can protect yourself from falling victim. Remember to be cautious when encountering deceptive advertising, hidden fees, unwanted add-ons, undervaluing trade-ins, and forced financing. Do your research, ask questions, and be prepared to negotiate to ensure you get a fair and honest deal when purchasing a new car.

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