Must-know scams to avoid when buying cars
When shopping for a car, it’s not just about choosing the best vehicle for your needs but also about avoiding scams and frauds as there are many who want your money including car dealers and car scammers. So, with so many cars for sale and dealers in the Philippines, what should you watch out for?
You will most likely fall into this scam when buying a car, which is often carried out by a group of criminals. These bad actors steal a real car, transform it into a resemblance of the legitimate car. At the same time, the car’s Vehicle Identification Number can also be changed. In this kind of scam, a V5 engine can even be modified to help the car look more trustworthy.
So, don’t rush into buying a high-spec car that comes at a price lower than the market standard. You should also meet the seller in person and track the address printed on the car’s engine.
Be careful with dealers who post vehicle advertisements on auction sites. They tend to copy the real seller’s ad and have no actual relationships with them.
When you agree to buy the car and transfer money to the agent, they will just disappear and you cannot get your money back or contact the agent. Only buy a car directly from the seller.
Failed finance deal
Here’s how the scam works: you find a car you can afford and agree to buy it. But a short time later, the seller calls you, saying that the deal has fallen through because of your bad debts. Then, they force you to pay a higher amount for the same car.
This scam usually works for those who are not well aware of their own transaction history and financial records. So, if you receive a call like this, never agree to the new amount immediately. Take your time and check the information.
Low credit rating or high APR
Car buyers can fall into this scam when they don’t know their credit rating thoroughly. In this case, the seller takes advantage of this and offers you the car at a high percentage per year. The only way to avoid this scam is knowing your transaction history very well.
These scammers post the ads for a car on a website and when you contact them about the vehicle, they send you an email that says the car is kept in a different place due to a credit issue.
They then ask you to pay through a “reputable” site they provide, which is actually a scam website. Most of the time, these scammers don’t give you a phone number or detailed contact information other than an email to stay in touch.
To avoid this, you should choose a trustworthy car website like Philkotse.com as many people have used it, which translates to high reliability and efficiency.
A car should always be insured but it’s no way mandatory. If the seller asks you to buy an insurance, don’t rush to agree, as they are trying to jack up the amount you have to pay them. It’s completely your right to decide whether or not to have your car insured and which type of insurance to buy, take your time to make the best decision and only buy insurance when you are well aware of what you are buying.
Dealer preparation fee
This is not really a scam but rather a workaround, a trick to make the buyer pay extra money after the deal is complete. Before signing a contract, you must check the small prints to see if it requires you to pay an additional preparation fee to the seller. Otherwise, you can be contacted and asked for a large amount of money that you didn’t know you agreed to.
Whenever you see a dealer offering a car with an installment plan, keep your guard up. They do this to lengthen your payment period that will eventually increase the total amount compared with the original one. It’s not illegal but it’s not of your best interest.
These are the scams and tricks everyone must keep in mind when they are looking at cars for sale and before deciding or signing anything. We hope these tips will help reduce the risk of financial damages for you as much as possible. Good luck!!!
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