We’ve put together a list of the common scams that take place in the automotive industry, some of these may not be specific to used cars, but the important thing is to be conscious of how easy it for dealers and sellers to take advantage of unsuspecting consumers.

Low Balling– Is one of the tricks most commonly done by dealers. They will try to convince the buyer that they can provide the lowest possible price for the car thereby prompting the buyer to start negotiations with the dealer. The salesman will probably tell you that you can get the car that you want for a lesser amount but when you are about to enter negotiations, it turns out that you were not promised a lower price after all. It is just an empty promise.

Best Price Matching–When you tell the dealer that you will try to look around and check other car dealerships, the salesman will ask you to return when you get the best possible price and he will offer to match it. By this time, you will probably be too tired and sick of looking around. Chances are that you will take their offer.

Yoyo Scam–You will be allowed by the dealer to bring the car home as soon as possible. The dealer will take care of the financing, a few days later he will contact you again and tell you that there was a problem with your financing plan. He will tell you to set up a new financing scheme through him which, of course, will be at a higher cost and this will also entail a very high profit on the dealer’s part.

Protective Coatings—Commonly called Paint Protect ant, Fabric Guard, Undercoating or even Rust Proofing—This one has been around a while, but it’s still prevalent at a lot of dealerships. They will usually “pack” this into the cost of the vehicle. During my years of experience I can’t recall one single event that this has helped a consumer. My Opinion—Forget it and don’t let the dealer persuade other wise.

Window Etching Trick–Window etching is a very common scam. What the dealer will do is to offer to etch the VIN number of your car onto the window of the car for a price. Basically, the price ranges from as low as $300 to as high as $1,000.

Some buyers think that they did a good job by being able to talk down the price to a few hundred dollars, but unfortunately for them, a few hundred dollars is still a good amount of money.

The best way to avoid this kind of scam is for you to buy an etching kit that you can do on your own. This is available in most auto shops and costs around $20. See how much they profit from you.

Tip—Some insurance companies will offer a small discount if you do etch the windows. The philosophy here is that if the windows are etched, it is less likely to be stolen, there by reducing the risk against the insurance company. Call your insurance company and ask if they offer the discount!!

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