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Auto Dealer Fraud Higher For Cheaper Cars

Incidents of fraud by auto dealers are higher for lower priced cars, according to a recent study.  The study, which was conducted by iSeeCars.com, evaluated millions of advertised vehicles and determined that the lower the price, the greater the likelihood that there was fraud relating to the vehicle's history or condition.  

My parents operated a retail clock shop for many years, and they specialized in higher-end grandfather clocks.  The shop had a sign on the wall that read, "The bitterness of poor quailty lingers long after the sweetness of low price has faded."  It looks like the same may be true for used cars as well.

I have been consulted by many consumers from out of state who came to Connecticut because they saw cars advertised on-line for prices that were lower than other comparable cars on the market.  Sometimes these apparent bargains can turn out to be a good deal.  But, if you are lured to a particular car because of low advertised price, be cautious.  Frequently, the car is priced cheap because of prior damage or a suspected mechanical problem.  

The most important thing to remember when buying a used car is to have the car inspected by an independent mechanic BEFORE you buy.  Do not rely upon a dealership's certification.  It is much easier to avoid buying a problem car than it is to engage a lawyer to help you get out of a bad deal.  

For more tips on how to avoid auto dealer fraud in buying a new car, check out our free Webinar "How to Buy a Used Car Without Losing Your Shirt or Your Sanity" on Youtube.

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