You’ve needed a car for a long time for work, and after researching several bad credit auto loans, you finally have the money you need to make a purchase. Your budget isn’t large – you’re not going to be buying a brand new car. Why pay full price for something that loses half of its value as soon as it leaves the lot? Instead, you’re looking for a used car. However, buyer beware – you face some dangers, thanks to these used car scams.
Fake Protection Plans
One of the benefits of buying a brand new car is that it comes with certain warranties. Scammers selling used cars know this, and they’ll offer you a protection plan, usually through a reputable company you’ve heard of. This makes you feel safe; you’re more likely to throw cash down if you feel you can get it back right away. However, when you call the company up, you’ll find that they don’t offer protection plans on cars not purchased through them. If someone is offering you a protection plan, always call the company it goes through before buying.
A Sudden Change In Terms
Imagine you’re back looking through several bad credit auto loans. You’ve agreed upon one, but when you try to make the deal, the loaner changes a bunch of the key terms. That’s a big red flag, don’t you think? The same thing can happen when you’re buying a used car. Scammers will say whatever it takes to get you interested, but when the time comes to put it in writing, they’ll put in extra effort to avoid following through on their promises. If you’re dealing with someone and they suddenly start switching terms, you should walk away before you lose your money.
If the seller wants to have the cash before you have the car, it’s a scam 90% of the time. This usually takes the form of a money wire or a prepaid card. The seller knows that once you’ve transferred the money, it’ll be impossible for you to get it back. Do not hand over any money until you have the car in hand, and when you do so, it’s best if you do it in a way that the money is traceable and can be returned to you if the car doesn’t work properly.
Too Good To Be True
The old cliché is true: if something sounds too good to be true, it usually is. When someone is selling a car, they expect to get market value. If they’re selling it well below market value, that means they need to move it quickly. You should ask yourself: why would someone need to sell their car as quickly as possible? Whatever you do, be wary of anything that sounds too good to be true.
Bad credit auto loans can pave the way to getting a great car, but you should always be on the lookout when buying used cars. Finding