If you are in the market for a new automobile, you may be concerned about possible auto dealer fraud. Your concerns are justifiable since Connecticut ranks high for fraudulent practices targeting car shoppers.
In a perfect world, you can buy the vehicle you want without worrying about a rip-off or scam. Unfortunately, the world is far from perfect, so it is vital to learn about the latest auto dealer scams before buying a new vehicle.
Addendum sticker scam
Addendum or add-on dealer stickers appear right next to the Manufacturer’s Suggested Retail Price (MSRP) sticker. They usually look official, but the dealer creates them, filling them with high-dollar fees or dealership add-ons that suggest the MSRP is much higher.
Loaded payments scam
These scams occur when the dealer misrepresents the price of the vehicle during negotiations. Typically, dealerships inflate one or more elements that make up the total cost of the car. Examples include increasing the interest rate, adding backend products or raising the monthly payment amount.
Forced extended warranty scam
Nefarious auto dealers are not above lying to make more profits. Such dealers will tell inexperienced shoppers that the car loan will not be approved unless the customer buys an extended warranty or another product (typically insurance). You are never required to purchase an extended warranty unless you want one.
These are just a few ways dealerships engage in auto dealer fraud. Consider reaching out for legal help if you were victimized by an auto dealer scam or fraudulent sales practices. Learning about the legal remedies available for victims under Connecticut consumer protection laws is also wise.