He’s wearing an ill-fitting suit coat that was already out-of-date back in the ’90s. He looks way too happy for his own good. He has the very best deals to offer, good for ‘today only!’ And you can already spot leaky oil spots under vehicles filling his used-car lot.

He’s a scammer, and he’s not always this easy to spot.

Buying a new car is often far less than the joyful experience advertisements make it out to be: families full of happy people checking out minivans with in-seat entertainment and room for the team’s soccer equipment, or a James Bond-esque figure pulling tight corners on dusty roads, proving you can drive an economy car and still retain your coolness.

How can you be sure you’re not falling for one of the worst dealer scams when you’re buying your new vehicle?

 

Scam #1: “We don’t have a title now, but, we can get it.”

Did you know many dealers don’t actually own the cars they sell? Because of the current recession, many dealers are still struggling to pay off the liens on the cars in their lot. If they’re hesitant about producing a title or say they don’t have it at the moment, that’s a big, ugly red flag.

 

Scam #2: The Bait and Switch

This scam tops Forbes’ top 10 list of car scams to avoid. First, the dealer lures you in with promises of an incredibly low down payment or a rebate program. Once you’ve gotten a whiff of that new car smell and fallen in love with the soft leather interior, the price goes up, or you find out the low down payment special you’ve just been offered has expired. If a dealer tries this on you, walk straight out the door, and don’t look back. There are other dealers who’ll be honest with you about your options.

 

Scam #3: Focus on the Monthly Payments

This is among the most lucrative of dealers’ tricks: “If I could get you into this car for $400 per month, would you drive it away today?” According to Business Insider, though it may be a tempting offer, this strategy leaves the door wide open for dealers to get the money out of you in other ways — by extending the loan period, or low-balling the amount they’re willing to give you for your trade. Don’t fall for these tricks. Make sure you look at the deal all the way around before you agree to a finance plan.

 

Scam #4: Limited-Time Offer

Some dealers will try to pressure you to make a fast decision. This cuts down on your opportunities to shop around and find a better deal, and it’s not usually your best choice. If a dealer tells you today is the very last day he can offer you a deal on a vehicle, be skeptical — this probably isn’t the case. Take your time when deciding on such a major purchase. Jumping into a financing plan isn’t likely to save you a dime. Comparing prices is always the best bet. Sites such as True Car allow you to compare dealers and prices on cars across the states. It’s real used car transparency. How’s that for a change?
 

Found the Right Dealer and Now Need Financing Options?

If you are like most consumers, figuring out how to finance that new ride can be a challenge. Do I finance with the dealership? Look online for financing? Well, the growing trend is to look online for the best financing options. There you can apply in the comfort of your home and get the best car loan rates available. Once approved, you can download your loan docs, sign them and get a blank check to go purchase your vehicle like a cash buyer and negotiate the best price on your vehicle.