Unavoidable Car Dealer Fees and Costs

Sales Tax: This is one fee when buying a car that there is no way around. It doesn’t matter where you live you are going to have to pay sales tax on you car purchase. The sales tax will be calculated at the percentage rate of the state and county where you live and not where you buy. It will be based on the price of the car along with any accessories or extras. However in many states there is a clause that let’s you deduct the amount of your trade-in from the new car purchased and then that is the amount that is used to calculate your sales tax. So if you are trading in a newer car it could substantially reduce your sales tax. Other than that sales tax is one car buying fee you can’t avoid.

Doc Fee or Dealer Documentation Fee: If you have never heard of this car buying fee it is an amount that the state of the car dealership selling the new or used car is allowed to charge you for processing documents. The amount of this fee is regulated by the state in which the car dealer does business. This fees ranges quite a bit based on the state. I have seen Doc Fees from around hundred dollars up to $800. This may sound like a car dealer scam, but it is legal and one car buying fee that is unavoidable so remember to include it in you car buying budget.

License and Title: License plates is one car buying fee that doesn’t need too much explanation. If you buy a new or used car you will to need to allow for the expense of license plates. In some states you can transfer the plates from your trade-in to your new car so check with your local state for the amount of this car buying fee to use for your budget. Next is the title fee, this is usually include in your license fee if you have your title or if a lender still holds your title. However if you lost your title you will need to pay a lost title fee so the dealer can process the paperwork to get a new title. The amount of the lost title charge varies by state, but if you lost your title you will need to make allowance for this fee when buying a car.

Local Tax: Some counties and states have a local tax that doesn’t amount to much, but it is still something that you should be aware of because it is a required car buying fee. Usually this fee is when you are buying new cars and it is between $10 and $25, but it will be tacked on to your new car purchase no matter if you want to pay it or not. Usually this local tax is only on new cars, but it depends on your local state and county.

Insurance: If you are going to buy a new car never assume that your car insurance will cost almost the same as the old car. This is not a charge that you pay at the car dealer when you are buying new cars, but when you contact your insurance agent after your purchase you may be surprised. Obviously this is not a car buying fee, but it is something you need to research before you buy a new car. Your car insurance is more of a hidden cost rather that a fee when buying a car so check with your insurance agent as part of your car buying homework.

Dealer Imposed Car Dealer Fees and Hidden Costs

The following are car dealer fees that are not required by law, but car dealers may try to add these charges to your car purchase both with and without your knowledge or permission. Being aware of these car dealer fees when buying a car and knowing what is legal and what is a bogus car dealer charge can help save you quite a few bucks.

Dealer Preparation: Commonly know as a dealer prep fee or dealer preparation was once a standard charge for the new car buyer to prepare a new car for delivery. In an effort by the manufacturers to eliminate car dealer scams Dealer Prep is now included in the price of the car (the car maker pays the car dealer to prep the car). I don’t recommend paying any type of dealer prep fee when buying a new or used car. If you stand your ground the car dealer will usually remove this car buying fee, if not maybe you should be shopping at a different dealer.

Window Etching: You will find car dealers that will add this car dealer fee into every new car purchased. They will etch the windows on every new car and then try to charge you for this service. This more of a car dealer scam rather than a car buying fee. If you really want car window etching (click the link and think again). Check the paperwork and refuse to pay for car window etching.

Extended Car Warranties: This is not a car buying fee, but it can be a hidden cost of buying a car. If an extended warranty for your new car is important to you click extended warranty and read the article before you decide. Some car dealers have been known to add in an extended car warranty as a way to make additional profit. Check your paperwork for any extended warranty charges or car dealer fees and be sure that you are buying what you agreed to buy.

Service Contracts or Agreements: Service contracts or service agreements are not required car buying fees, but car dealers will very often do their best to add this to your contract and make additional profit and commission. Check the numbers before signing  for any service agreements or contracts.

Rustproofing, Undercoating, Paint Protection or Fabric Protection: Obviously these are extras and add-ons that car dealers want you to buy, but when you are using  dealership financing they may add these on to your bill of sale because they may only change your monthly payment by a few dollars. This a car dealer fee trick or scam and not a car buying fee. Read and question everything before you sign on the line!

Insurance-Life and Disability: Just like some of the others above Auto Loan Life Insurance and Disability is not a required fee when buying a car. Not even a lender can require life or disability insurance. This a car dealer fee that they say is stipulation of a car loan or purchase, so don’t sign for these items.

The Hidden Costs and Car Dealer Fees When Buying a Car – You Decide

So you can see that there are plenty of car buying fees that are required by state and local governments, but there are many others that car dealers would like to make you think are necessary fees when buying a car. Know the difference between the required car buying fees and the car dealer fees can save you a bundle in the long run. Do your homework and research before you become the victim of a car buying scam.

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Most car dealers today have a Internet Car Sales Department of some kind in order to accommodate the car buyer that uses the Internet to do research before they visit the car dealership. It has been reported that 80% percent or more of today’s car buyers use the Internet to some degree  to research buying new cars.

Car Internet Sales Structures

There is no hard and fast rule for structuring a car internet sales staff or department. Different dealers setup the way they handle internet car sales customers differently than the next dealer. Most people believe that the Internet sales department at the car dealer processes emails and requests for new car pricing, car availability inquiries and sets up purchases for car buyers before they get to the dealership.

Another way that some car dealers set up their Car Internet Sales Departments is to forward the emails and leads (customer inquires from the Internet) to a select group of floor salesmen or saleswomen. Theses sales people will then work that lead or email to get the customer into the car dealership. They will communicate with the customer via email, telephone, texting or whatever means available to turn them into a customer and eventually a car buyer. Some of these car dealers will email quotes and and work out purchase details and others will not. Their focus is simply to get the customer to come to their dealership.

A third way that some car dealers choose to set up a car Internet  sales system or department is to combine their Internet Car Sales emails and leads with their BDC (Business Development Center). This allows that team or staff to handle all of the emails, leads and inbound phone calls that relate to sales of new and used cars. This hybrid BDC/Internet Car Sales Department handles everything that has to do with selling cars before the customer actually comes to the car dealer. They set appointments, coax customers to come to the dealer and work out details. When the customer arrives at the car dealership the customer is then taken care of by a floor car salesman. If there are details or quotes the car salesman is informed and honors those quotes. The only drawback to this Car Internet Sales system is when a customer feels they have formed a bond with the Internet car sales staff member and they end up working with a different salesman they can sometimes feel they have been tricked or lied to. A good car salesman can overcome this situation if handled correctly and professionally.

Internet Car Sales and the Missing Profit Potential

Did you ever wonder where the profit comes from when you get a car through the Internet car sales department? Yes, I said profit. Did you really think that the car dealer was going to let you leave the dealership with the tiny little profit they make from Internet car sales. Of course not!

The idea of Internet Car Sales is to bring in car buyers from beyond their normal trade area. This gives them a chance to grow market share and make additional profit. Since the Internet car buyer is coming to their dealership because of the great price they were quoted they focus on other areas to make a profit.

Those areas are dealership financing, extended warranties, car window etching and other car dealer scams. They may sell a car and make less profit from Internet sales, but they very often make up the difference in other areas. Your car buying homework and research is still your best defense from car scams when you buy a car.

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What is an Extended Car Warranty?

An extended automobile warranty is basically an insurance policy. A policy that starts when the car manufacturers warranty expires, in other words it can extend the warranty period for your new car to a pre-determined amount of time or miles. The warranty term can be extended out to 100,000 miles and a time limit of 7 years from the original purchase date. These are simply examples of different time frames and mileage amounts. You can buy an extended car warranty that has many different variables some of which are mileage limits, number of years and deductibles to be paid by the car owner.

How to Decide if Buying Extended Car Warranty is Right for You

To help you make a decision about buying extended car warranty for an extended period of time for your new car there are some questions that you should consider.

1. How many miles do you drive a year on average?
2. How often do you buy a new car?
3. Are you planning to keep your car long after the manufacturer’s warranty period?
4. How much does an extended car warranty cost?
5. Can your budget afford unexpected car repairs?
6. What kind of warranty coverage is available and what repairs does it include?

Buying a New Car Extended Warranty Considerations:

If you are buying a new car the first thing to consider is how long the manufacturer’s car warranty lasts. A very common warranty term is 3 years or 36,000 miles. So if you drive an average of 10,000 miles a year and like to get a new car every 3 years then an extended car warranty does not make much sense. However if you drive and average of 18,000 miles a year and would like to keep your new car for at least 5 years (especially if you have financed for 60 months until you pay off your car) you will have approximately 90,000 miles on your car after 5 years.

Should You Buy Extended Car Warranty?

Many car makers’ warranties include a 5 year or 60,000 mile engine and drive train warranty, but it does not include anything other than the drive train. So it the above scenario where you drive 18,000 miles a year and want to keep your car for 5 years you will have reached the mileage limit on your original warranty within 2 years. To take this scenario farther imagine you have 40,000 miles on your car and you have a problem that requires a $1200 repair that is not covered by your drive train warranty. You will have to pay for your repair out of pocket and still make your monthly car payment. If you have an extended car warranty you will have to pay your deductible (if you have one) and your monthly car payment. If paying your payment along with an unexpected $1200 car repair would be disastrous to your financial well being then to buy extended car warranty might be a good choice for you.

A $1200 repair on a car that only has 40,000 miles might sound out of the ordinary, but it can happen. A repair on a newer car that exceeds a thousand dollars is not extreme today when you consider all the electronics and technology that are part of today’s automobiles. A new car extended warranty that covers your car for 100,000 miles or 7 years may only cost you $1200 depending on the make and model of car if you do some warranty comparison shopping.

Buying a Used Car Extended Warranty Considerations:

When you buy a used car there are many things to consider when it comes to buying an extended car warranty. Used car warranties can be purchased that cover from 12,000 miles or 12 months or as they can long as 7 years or 100,000 miles and some can even be longer or more miles. One variable is the age of the used car that you are buying, if the car is too old or it has too many miles there may not be an option to purchase a warranty. If you used car purchase is only a year or two old your choices and considerations for extended warranties are very similar to those of a new car. If the used car you plan on buying has a warranty that is only a year away from expiring it is probably a good idea to evaluate your options and do some research and comparison shopping for extended car warranties.

Why Do Car Extended Warranties Have a Reputation of Being a Scam

The extended car warranties that car dealers sell have been seen as car dealer scams for a few reasons, all of which are because of the car dealerships that sell them. One car dealer scam that involves the purchase of extended warranties is the finance manager including an extended car warranty in the paperwork and telling the car buyer that it is a requirement of the lender. This is simply not true; there are not any lenders that require an extended warranty. This is a car dealer tactic to get you to buy the warranty so they can make additional money and commission on your car purchase. If you have a car dealer tell you that the lender requires an extended warranty you are dealing with a car dealer that is trying to scam you. Your best choice at this point is to get up and go to another dealer.

Another reason that extended car warranties are the subject of car scams is because of how much the car dealer charges you for a warranty. I have seen car dealers charge anywhere from a $100 over cost (which would be a great deal) up to 3 times the dealer cost. The car buyer that has not done their research has no idea how much an extended warranties cost. The best thing you could do is get some FREE quotes before you go to the car dealer by Clicking HERE! and get a quote from Smart Warranty.

What is the Price to Buy Extended Car Warranty?

The prices for extended warranties on cars can vary greatly based on the type, brand, make, model, miles and age of the vehicle. They are also based on the reliability of the particular car and the average price of repairs. I have seen the dealer cost of warranties be as little as $500 and as high as $10,000. See what I mean about how much the price can vary between cars (and those are dealer costs). The retail price can be any number that the car dealers finance manager decides.

Protect Yourself When Buying Extended Car Warranties

The best way to protect yourself from being the victim of a car dealer scams when you buy an extended warranty for cars is to take some extra time when doing your car buying homework. You would buy anything without comparing prices at a couple different vendors. So why would you buy extended car warranty for your car without getting some competitive prices. You can CLICK HERE and get FREE QUOTES on extended car warranties before you go to the car dealer. If you bought a car in the past and would like to buy a warranty you can get a competitive price for one HERE…at Smart Warranty. There is no obligation and it is FREE…. Click Here! NOW! And get a quote for free.

You can purchase an extended car warranty directly and avoid the car dealer scams or you can use your FREE Quotes to keep the car dealer on the up and up or to negotiate a better price. You have to decide whether to buy extended car warranty is right for you. Get the FREE Quotes and make a good decision for YOU!

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What is Car Window Etching?

Basically car window etching is a process of acid etching a series of numbers or letters, usually the VIN# or Vehicle Identification# or serial number on all of the glass on your new car. These numbers are then used to identify parts of your car if your car was stolen and disassembled for parts. The idea is that a thief will not want to steal your car because the individual parts can be identified and therefore none of the automobile scrap yards will accept a car that has window etching.

There are insurance companies that write car window etching policies that are supposed to protect you if your car gets stolen when you have all of your windows etched. You pay a fee for this service, but the worst part is the range of prices that car dealers charge. There are stories of car dealers charging anywhere from $199 to $2000.

Car Window Etching Scam Details

The big push to sell car window etching when buying new cars is usually done by the Finance Manager when you are doing your paperwork. The Finance Manager will tell you that having car windows etched can give you an extra $2500 if your car gets stolen. Because of the exposure of the car window etching scams throughout the car business window etching has been downplayed somewhat and sometimes becomes one aspect of an overall security protection package. These packages often consist of other parts such as car alarms.

If you are seriously considering car window etching against the opinions of many car people be sure to carefully read the documents and understand the fine print of these documents. There are often catches such as your car insurance must pay before they will pay anything for a stolen vehicle and if they have to pay it will only be after your insurance pays and then the shortage. Think twice before you pay for window etching on your new car.

Seriously – V.I.N. Etched Car Windows!

Think about this scenario logically, a thief is going to steal your car and they are going to go around your car with a flashlight to see if you have window etching…..I think not! Car thieves can get around many of the best car security and alarm system and the manufacturers security system, but they are going to be put off by a small series of numbers scratched on your windows…..Really!!!

You Want Car Window Etching?

If you really want to get your car windows etched because for some reason you believe that this product will make your car safer, you can go to many auto parts stores and do it yourself for under $20. That is about what the car window etching scam will cost the car dealer. The companies that sell this window etching system to car dealers often boast that the car window etching scam can bring hundreds of thousands of dollars of profit to the bottom line of the car dealership. The car window etch scam can make huge potential profits for the car dealer, but offers next to nothing in the way of benefits to the new car buyer according experts.

Pitching the Car Window Etching Scam

The car dealer Finance Manager has been known to sell the car windows etching system in a variety of different ways. Read your car dealer loan paperwork closely because some car dealer Finance Managers might add window etching without ever talking about the system. Others will tell you that the lender requires window etching (dealership financing scam) to protect the car which we all know is not true. Sometime they will tell you that it only adds $3 or $4 a month to your payment in hopes of you not caring about such a small amount. Over a 60 month loan that can be $180 to $240, if you have an extra $200 bucks let me know because I will gladly take it off your hands.

The car window etching scam can make huge profits for the car dealer and many automotive experts think that it’s practically worthless to the average car buyer. Window etching for your new car has been one of the most profitable car dealer scams for years. Ultimately the decision is yours if you want your car windows etched, but I always take a pass.

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The Bill of Sale – Car Buying Paperwork

The automotive bill of sale is the legal document that shows that you purchased a car or truck. Whether you pay by cash, check or finance your car this part of the car buying paperwork is the same. This is the document you will need to get your license and registration if you did not get it at the car dealer. Dealers will usually handle that process in most states, but if you bought a car in a different state you will have to go to your home state and get your plates and registration.

Car Buying Paperwork Line by Line Bill of Sale

A. This section of the car buying paperwork is very easy to understand. It contains your personal information, phone number and date. When you are reading this document before signing check for accurate information and have the car dealer correct anything as needed.

B. Vehicle Being Purchased: This one is easy to understand it contains all the pertinent information about the car you are going to buy. No secrets or car dealer scam here, just make sure that the serial# or V.I.N. matches that of the car you are buying.

C. Trade-In Vehicle: When you trade in a car on your new car purchase the information get placed here. Nothing special here just all the information about your trade-in, like the section above be sure to confirm your serial number or V.I.N. If you do not have a trade-in this section would be blank.

D. This section will be where the information goes when you still owe money on your trade-in to a lender. When you owe money to a lender on your trade-in these spots will include the name of the lender, your account number and the amount of the pay-off that the lender requires. That way the car dealer will send a check to your lender to pay off your old car loan as part of this transaction. Make sure that the pay-off amount is correct. If for some reason the pay-off is different than the amount of this car buying paperwork bill of sale you are responsible for the difference, not he car dealer. For obvious reasons you want to be this that the payoff amount is accurate.

E. This section of the car buying paperwork contains the amount of any manufacturers rebate, the amount of your deposit if you left one earlier and any cash down. Pretty straight forward, just check for the rebate if there was one.

The Money Side of Car Buying Paperwork

F. This line of the Bill of Sale is the cash price of your purchase. This should reflect the real price after negotiations. (example: if you are buying a $20,000 car and negotiated the car dealer down to $18,500, the $18,500 should be shown here. If you followed the Steps to Buying a Car I am sure you got your 4 FREE -No Obligation Price Quotes from Yahoo! Autos before you went to the dealer.

G. Most dealers do not use these couple of lines. Any factory installed options would be included in the line above. Some dealers may use the section to list certain items such as sunroof or navigation, but the price is included in section F.

H. Dealer Installed Options: These lines would include any options that the dealer installed or will install as part of the purchase. It might be any number of different items like a trailer hitch, DVD, sunroof or anything that will be included in the vehicle. The prices of the options should be listed here on the car buying paperwork.

I. Documentation Fee: This is the documentation fee that is allowed by the state for processing the car buying paperwork and documents. This fee is regulated by the state in which you buy you car. I have seen this fee be anywhere from from about $100 up to several hundred. You can check with your state for the exact amount.

J. ERT Fee: This is the Electronic Registering and Titling Fee. Some states have car dealers set up online to do vehicle registering, licensing and titling via the internet and the state controls the amount of the fee that the dealer can charge. This is not something that can be negotiated. It is usually around $25.

K. Dealer Services: What is this???  The car dealer can use this section for anything they need to add on to your car buying paperwork. One of the most common would be a lost title charge, temporary insurance or anything similar. What ever amount shows up here you want a complete explanation and breakdown. If you decide to purchase an extended warranty I am sure you went here and got FREE Warranty Quotes so you will know if you are getting scammed.

L. Cash price of vehicle and options. This is a subtotal of lines F through K. No mystery here just add each line starting with line F.

M. Less Trade-In Allowance: Check your car buying paperwork closely because this line contains the amount that you agreed on to accept for your trade-in. Car dealers have been known to slip a number on this line that is less than the amount you agreed. This car dealer scam often goes unnoticed at the time of signing the paperwork because of all the numbers on the bill of sale. You can’t come back tomorrow and say they made a mistake. This is a contract so be sure ALL of the numbers are correct before you sign.

N. Amount Subject to Sales Tax: Many states allow you to deduct the amount of your trade-in allowance from the car purchased so that you are only subject to sales tax on the difference. This is a pretty good thing that can save you a couple of bucks. If you sold your car to private party and did not have a trade-in you would not have any way to reduce you sales tax. Be sure to take this tax savings into consideration when you are selling your old car to a private party.

O. State Tax: The sales tax based on the state in which you are registering the car. Most people don’t realize that you pay sales tax based on where you live not where you buy. No secrets here.

P. County Tax: This is the sales tax based on the county in which you reside. It is a small amount anywhere from 1/2% to 3%. All sales tax is usually thought of as the state sales tax, but in the car business it is broken down down to state and county tax because it is based on where you live not where you buy the car. This is a way to keep things fair between car dealers so one car dealer doesn’t have an unfair advantage of a car dealer that is in a higher county.

Q. County Flat Tax: Not all counties have this tax but when they do it is a one time tax on new vehicles ( not used) that is usually small about $15 to $25 and mandated by the specific county.

R. Title & Plates or Transfer: This is an amount that depends on the state of registration. This where your charge for new or transferred license plates goes. This is the same amount you pay for plates no matter where you get then because it is controlled by the state.

S. Service Contracts: If you agreed to buy one from the car dealer the amount would be entered here because it is not taxed. Just make sure the amount is what you agreed on with your Finance Manager.

T. Subtotal: This the the sum total of lines from section L through S.

U. Plus Payoff on Trade-In: This amount comes from section D and is the amount that is added back in to your price so the dealer can write a check to pay off your car. Check the numbers to be sure they are accurate. Remember what I said you are responsible for any errors or shortages.

V. Less cash Down and Rebate: These numbers come from section E and are a negative number so it is subtracted from the amount you are paying for you new car. Notice the brackets on the car buying paperwork in this section that mean that it is subtracted.

W. Balance Due on Delivery: This is the final car buying paperwork amount that you are responsible for paying. At this point you write a check or you finance this amount. If you are financing your new car this is the amount financed.

X. This is where your Finance Manager will sign.

Y. This is where you and your co-buyer (if there is one) will sign the car buying paperwork.

I am sure you noticed that both you and the Finance manager signed the car buying paperwork. That is because this is a legal document. It is a binding contract so it requires both parties to sign. The Finance Manager is not the car dealer but they are the legal representative.

See that car buying paperwork bill of sale wasn’t so bad once you take it line by line and take your time. I hope this helps you next time you go to the car dealer and buy a car.

The Bill of Sale Part of the Car Buying Paperwork

Car Buying Paperwork the Bill of Sale

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#1. Buying Car Scam:

You email or call several dealers to get a price for a vehicle that you want to purchase. The person you talk to or the person that emails you gives you a great price and you decide to go out that dealer and purchase your car. You arrive at the car dealership only to find out that the particular auto that they quoted “just happens” to have Paint Sealant, Fabric Protection and Rust-proofing already applied. The dealer agrees to sell the car for the price quoted, but they say that you have to pay for the extras that are already applied. The dealer charges you an additional $ 950.00 or so for items you never wanted and aren’t worth more than a couple hundred dollars.

When searching for a new vehicle I recommend you visit Yahoo! Autos for a listing of the dealers in your area that includes pictures, details and pricing.  Avoid the hassle of calling around, find your next new car at Yahoo! Autos.

#2. Buying Car Scam:

This car dealer trick is similar to #1, except instead of extras that are installed they charge you for the destination fee and a dealer prep fee. This amount could be anywhere from $ 500 to $1500. This a very common buying auto scam that even good dealers may try.

#3. Buying Car Scam:

You have decide on what automobile you want to purchase so you make some phone calls to several dealers to make sure they have the car in stock before you go out to buy your car. You tell the dealer what make, model, trim level and color you want and ask if they have the car in stock. They tell you yes, they do have that car and ask when you can come in to see the car. You tell them you will be there shortly and then jump in your old car go down to the car dealer. Now when you get to the dealer you are told that the car was just sold, but we have some others we would like to show you. The auto dealer knows if they tell you that they don’t have the car they will never get you to come in to their dealership. If they tell you they have it in stock you will come in and they have a fair chance to sell you a car even though it is different than the car you really wanted. This is a very common practice.

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#4. Buying Car Scam:

You went to the car dealer and selected a car to purchase. You took the car for a test drive and you have negotiated the deal, you know the payment and term, everything is set. Then your car salesman asks you if you are going to pay for the taxes, documentation fee and license by cash or check. When you say that you thought that was all included, they say that they can roll it into the payment, but it cause the payment to go up by xx number of dollars. This car dealer trick is usually used when the customer is stuck at a price that will not allow them to make any money. Get the best price on a new car.

#5. Buying Car Scam:

You have made a deal to buy and finance the new car of your choice and you go into the business office to do your paperwork. The finance manager pitches you on an extended warranty for you new car. If you say no that you do not want the warranty they tell you that the bank requires you to have the warranty to qualify for financing. This is not true and another one of their buying car scams, only your credit determines if you qualify for a loan. This is a way to sell extended warranties and it has nothing to do with your credit.

#6. Buying Car Scam:

The car dealer can make significant profit from selling extended warranties. If you don’t purchase the warranty at the time of original paperwork, it will cost you nearly twice as much. That is not true, you can purchase extended warranties at any time and price does not change if you buy a warranty with the car or later from some other source, you can get a free warranty quote here.

#7. Buying Car Scam:

The car dealer will tell you that you can only buy an extended warranty from the dealer. This is not a true statement, there are several sources where you can buy an extended warranty. Some times you can buy an extended warranty from the same place that the car dealer does at a much lower price. Like here for a free quote.

#8. Buying Car Scam:

The finance manager at the car dealer may tell you that you need to buy Credit Life Insurance as a stipulation to qualify for the loan. They say that the lender requires it in case something happens to you. This is not true, no  lenders require you to have credit life insurance. This is simply another way to make more money when they sell you a car.

#9. Buying Car Scam:

The dealer will try to add or sell you car window etching and tell you that the lender wants you to have it to protect the car from being stolen. This is not a requirement of any lender, it is a way to make more profit. Window Etching purchased from the car dealer can be anywhere from $150 up to$300. You can actually get a window etching kit and do it yourself for around $20.

#10. Buying Car Scam:

When you buy a new car you may want to get a Remote Start or a Car Alarm. These items can be purchased and installed at many places other than the car dealer.The car dealer will tell you that any of these items that are installed anywhere but the dealer will void the car’s warranty. This is not a true statement and is for the sake of getting you to buy accessories from the dealer at the time of sale.

This has been a small sample of all the buying car scams and tricks that are used to manipulate you and make more profit for the car dealer. The car salesman, Finance Manager and Sales Managers are paid commission based on the amount of profit that the car dealer makes. Their objective is to squeeze out every dime that they can from every car buyer they sell. You can avoid wasting your hard earned money when you know the tricks and techniques they use to get your money.

Knowledge is your best defense against buying car scams. I recommend you start your search at Yahoo! Autos first for your FREE – NO OBLIGATION price quotes.

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There are dealers out there that may tell you that you are required to have the Auto Service Contract Service. This is not the case, if they want to bundle an auto service contract and include it in the price that is another thing. Usually the car dealer try to get you to buy the auto service contract for an additional charge. You should know that, it is an option. There is no requirement to buy an auto service contract, that is a one of the car dealer scams.

When it comes to auto service contracts, these are promises made by the car dealer, to provide the recommended and necessary services for specific time frame that the buyer is entitled  and contracted for.

Check Before Buying An Auto Service Contract

Some people think that an auto service contract is the same as and extended warranty, it is not. If you purchased a new car the manufacturer provides a warranty for repairs, but not servicing. The auto service contract takes care of maintenance that the manufacturer recommends in order to keep the warranty valid.  These things would be oil and filter changes, tire rotation, air filters, brakes and rotors and anything that is considered normal. There will be conditions and stipulations written into all auto service contracts, detailing what is and is not included, watch for a car scam.

Things to consider before buying an Auto Service Contract:

1. Read carefully and make yourself aware of all the conditions, terms and stipulations of the Auto Service Contract.

Every car dealer can have several versions of the Auto Service Contract. Read all the terms, conditions and stipulations before you sign anything. Check to make sure if there is a deductible, some dealers have that included in their auto service contracts.

2. When and where will the service be performed

Make sure of where you may have to take your car to get it serviced under the terms of the Auto Service Contract. Just be sure that there aren’t unusual conditions to when and where you get you car serviced. You don’t want to be restricted to certain days or times.

3. Who will provide the service under the Auto Service Contract

Will this dealer being doing the service or can you take the car to any dealer of the same brand to get service done on your car. Will you feel comfortable to have the dealer service your car. How long has the dealer been in business and what kind of reputation do they have are some questions you may want to ask yourself before you buy an Auto Service Contract.

The morale of the story is when you buy a  new or used car, take your time, read and understand everything before you sign any paperwork. If you don’t feel good about your purchase don’t do it. You are spending a lot of money, be sure of what you are doing and watch out for the car dealer scams.
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