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| Just Cruisin'
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| Summer's here and it's time to get ready for the beach, camping, barbeque's with friends, and late nights on the patio. However, it's also time to shine up your ride.
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Every year around this time people get a little more anxious in hopes of finally being able to take their treasured ride out for a cruise. It's also the time of year that car sales boom because people need to have that perfect ride for the summer. However beware - do you know how to spot a trade in scam?
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The basic concept of a trade in sounds like a good idea. You take a car that you currently own and put it towards the price of a newer car, effectively saving money. However, it is important to note that some car dealers are less than honest, and will try to scam customers who trade in their current cars to go towards the price of a new vehicle. Understanding these scams can help save you a lot of money while avoiding potential legal issues.
One common scam dealers try is to lure you into is trading in your old car for a new one with really low financing. After you've traded in your old car and made a down payment, the dealer will call you back a week or so later and tell you that they need to increase the price of the loan, and if you can't pay it, you will need to turn in the car. If you decide not to pay the higher price and ask for your old car back, they will tell you that the old one is sold. People who don't understand the law may be forced into paying a higher loan amount.
The dealer is not allowed to change the terms of a loan after they have sold your trade in. If it happens, demand your car back or the refund along with the down payment. When you trade in your old car towards the price of a new car, there are a number of things to remember. Never hand over your title or the key until the purchase agreement has been signed. Sometimes dealers will not add in the agreement that you traded in your old car, or they will list an incorrect amount. Read over the agreement to make sure the trade in is mentioned, and make sure it is the exact amount the dealer paid you for it.
If you have to go to court, having these terms in the agreement will work in your favor. Avoid car dealers that offer to give you a price for your trade in which matches the value of the loan for a new car. While it may seem like an even trade, the loan is being given by the dealer, and they may find a reason to increase it. Once they increase the price you will have to pay the difference plus taxes. If you have a car that is only worth 00, and you want to buy a car for ,000, never trade in your car for ,000. Only trade it in for the price it is worth.
If you run into a problem with a car dealer, contact your attorney as soon as possible. However, it should be noted that the best way to handle a scam is to avoid it. Having to go to court can be a waste of time and money. Understand that different scams you'll run into with dealers can save you a lot of money and headaches.
TIPS FOR WHEN PURCHASING A NEW VEHICLE
- It's a buyers market which means you can bargain with dealers for a better deal, but be prepared for war.
- Do some homework on market values before you go shopping so you know the value of the car you're buying and the value of your trade-in. That way you'll be better placed to barter with the dealer.
- Have your finance arranged before you go shopping, but don't tell the dealer. Dealers will often cut the price of a car believing they'll make money on the finance.
- Don't settle on the first car you inspect. Visit a number of dealers and compare deals before making a commitment.
- Look for a dealer well stocked with the car you want and he'll be more prepared to deal.
- Shop towards the end of the month when dealers are looking to get their quotas up.
TIPS FOR WHEN PURCHASING A USED VEHICLE
- Proceed carefully.
- Shop around before you spend. Look at a number of cars so you can get a good idea of the prices, average odometer readings and general condition of cars on offer so you're armed and ready to negotiate with the seller.
- Ask to see the car's service book and check its service history. It is worth making a phone call to the service agent and ask them about the car. If there isn't a service history walk away.
- Check with the Department of Motor Vehicles (DMV) to make sure the seller is the owner of the car and that it has a clear title of ownership with no outstanding finance on it.
- Buy a car with as much registration left on it as possible. That way you won't have to spend a few hundred dollars extra soon after buying it.
- Before test driving a car make sure it is insured and that the coverage includes you as the driver.
- When viewing adverts online from private advertisers, beware of common internet scams. These usually involve the advertiser requesting you transfer money before you've seen the vehicle.
Hope these suggestions help you get the best deal on your summer ride.
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