The advertisements seem too good to be true: the car dealership will give you $3,500 for your trade-in, regardless of condition. Many consumers who have trade-ins with serious problems find these offers impossible to resist. But, be careful, because these advertisements are deceptive and are a type of auto dealer fraud.
Many consumers decide to trade-in their cars before they have paid off the old loan. When things go right, the dealership will obtain a pay-off amount from the bank or finance company and will make the payment on time and for the proper amount. The dealer gets the title, and the old car loan is paid off.