The car buying process can be a lot of fun, but it can also feel like you’re being duped by a professional con artist. Here are some important tips on how to avoid car buying scams and protect yourself against getting ripped off on your next vehicle purchase:

Don’t Fall For This Car Scam

Takeaways
Be prepared before buying a car. Don’t fall for common scams, and know how to avoid mistakes that could cost you in the long run.
Research the car you’re interested in, and don’t hesitate to ask questions or walk away if something doesn’t feel right.
Negotiate effectively by coming prepared with a max price in mind, and considering other aspects of the sale beyond just the sticker price.
Protect yourself from scams by being aware of red flags, such as sellers asking for payment upfront or deals that sound too good to be true.
Use resources like guides on car buying scams and FAQs to learn more about how to protect yourself and make smart car buying decisions.

Table of Contents

Missed Service Appointments Will Cost You

One of the most common car buying scams is when a dealer tells you that they’ll include a service appointment with your purchase. They may say something like, “We’ll take care of the service for you,” or “Let us schedule your next oil change.”

It sounds great at first, but it’s not always true. Sometimes dealers will try to get out of this obligation by claiming that the manufacturer only provides them with three free services per year (or some other number) and that if you want any more services than that, then you’ll have to pay for them yourself.

If this happens to you and you don’t want to get stuck with an unexpected bill from your mechanic later on, do some research ahead of time so that when they tell you about the limits on their service package they won’t be able to fool you into thinking otherwise!

Before buying a car, it’s important to do your research and come prepared. Read our comprehensive guide to the ultimate car buying checklist to ensure you don’t miss any important details during the process.

Get Your Car Inspected

The moment the seller hands over the keys to your new ride, it’s time to get moving. While their car may seem like a dream come true, don’t be fooled—the odds are that there’s something wrong with it that you won’t know about until you drive it yourself or bring in your own mechanic for an inspection.

What’s worse than buying a faulty vehicle? Buying a faulty vehicle and not knowing about it until after your money has changed hands.

That’s why we recommend getting a pre-purchase inspection (PPI) before making any final decisions on whether or not to buy the car: having someone who isn’t emotionally invested in selling their car take an unbiased look at its condition will give you valuable insight into any potential issues.

A PPI is also useful if they’re selling their car as-is with no warranty; by performing this check beforehand, both parties can proceed with full knowledge of what they’re getting into so there won’t be any unpleasant surprises later on down road! A dealer might offer these inspections themselves but we always suggest doing them through third parties so that they don’t have any incentive

Keep An Eye On The Odometer

Always keep an eye on the odometer. This is a simple way to protect yourself from fraud and make sure you’re buying what you think you’re buying.

Many used cars have their odometers rolled back, which means they’ve been tampered with so that the miles registered are significantly lower than what they actually are. In other words, a car that looks like it has 100k miles might really have 200k miles.

If this is the case and your state considers this illegal behavior, it could be considered a felony depending on how much work went into altering or resetting the odometer reading.

If you suspect that someone has altered or reset their odometer without being honest about it (which would be illegal), report them immediately so they won’t be able to do so again!

Sign Up For A Credit Monitoring Service

You may have heard that credit monitoring services can help you keep an eye on your credit. But they’re not designed to help with fraud or identity theft, and this is why: Once a negative entry has been placed on your report, it’s there for good.

Once the account is closed, it will remain in your report for seven years from the date of first delinquency. That means that if someone opens an account in your name and then closes it—whether intentionally or not—the negative information will stay on your report until 2020 at the earliest. Credit monitoring services won’t make any difference here (and some even charge fees).

However, if you’ve found evidence that someone has applied for credit in your name without permission (i.e., through either identity fraud or “friendly fraud”), then there are things that can be done to remove these entries from both Equifax and TransUnion reports—but only if they’ve been reported within 30 days of discovery.

An experienced lawyer should be able to help guide you through this process once they know what happened; they might even offer free consultations as part of their service offering

Car buying mistakes can end up costing you thousands. Learn how to avoid common missteps with our guide on avoiding common car buying mistakes and save yourself time, money, and stress in the long run.

Request A Full Vehicle History Report

A vehicle history report can be a nice addition to your car shopping process. The report will tell you if the car has been in an accident, or if it has been stolen. It’ll also let you know if the car has had any recalls, or if there was flooding involved with its previous ownership.

The report will reveal whether the vehicle has been salvaged by its previous owner(s), which means that it’s still being repaired from damage after being in an accident. These cars are usually sold for less than their original value because they’re not considered safe for consumers to drive on public roads—so make sure you don’t fall into this trap!

Brands Offering Comprehensive Vehicle History Reports

Brand	Type of Report	Cost
Carfax	Comprehensive vehicle history report	$39.99 for a single report
AutoCheck	Comprehensive vehicle history report	$24.99 for a single report
MyCARFAX	Vehicle history report, including maintenance records	Free for basic report; $10.99 for a comprehensive report
VINCheckPro	Comprehensive vehicle history report	$6.95 for a single report; $49.95 for a 30-day subscription
NMVTIS	Government-sponsored report with data from insurance carriers, salvage yards, and other sources	Varies by provider; typically around $12 for a single report

When buying a car, requesting a full vehicle history report is a critical step in protecting yourself from scams and ensuring you’re getting a high-quality vehicle. Many brands offer comprehensive reports that include information such as accident history, title changes, and maintenance records.

While some reports can be pricey, others can be obtained for free or a low cost. By taking advantage of these resources and requesting a vehicle history report before making a purchase, you can be sure you’re getting a safe and reliable car from a reputable brand.

Avoid Buying Used Cars With Branded Titles

You don’t want to buy a car that was previously in an accident. A branded title means that the car was involved in an accident serious enough to require a total loss. This can mean any number of things, including that it was stolen or written off by an insurance company because of extensive damage.

You don’t want to be responsible for a car that was previously stolen. If you’re buying from someone who doesn’t have proof of ownership, there’s no way you know where they got their hands on the vehicle. If they didn’t purchase it directly from the manufacturer, then it could’ve been stolen or even bought at auction from another person who stole it themselves!

If you’re looking to trade in your car for a new one, you’ll want to make sure you get the best value possible. Our guide on getting the best trade-in value will give you the tips and tricks you need to negotiate effectively and avoid getting lowballed.

Be Vigilant When Buying Cars Online Or Out Of State

Don’t be fooled by slick salespeople or promises of instant car ownership. Don’t fall for “too good to be true” deals and don’t pay in cash.

Car buyers beware: There are many scams out there that can cost you thousands of dollars. For example, an online seller might tell you that they’re from out of state and ask for a down payment before shipping the car to you—but then never follow through with sending the vehicle.

Another scam involves someone taking payment by check over the phone but failing to deliver on their end when it comes time for delivery; these scammers typically disappear after taking your money so this is another reason why it’s recommended not paying in cash if possible!

If buying from an individual instead of a dealership, always do thorough research into their background beforehand as well as checking any license plate numbers given against DMV records (you can even visit DMV locations directly if possible).

You should also get any car inspected by a mechanic before purchasing since some sellers might try passing off mileage inaccuracies or other issues onto unsuspecting customers who don’t know enough about cars yet!

Inspect The Vehicle’s Title Documents

The title document is the most important document you will get when buying a car, so it’s critical to make sure that it’s valid. If you’re buying from an individual, they should provide the original signed title. If you’re buying from a dealership, they should provide both the original and copy of the title (along with any other relevant documents).

Before inspecting any titles for yourself or having an expert do it for you, there are some general guidelines to keep in mind:

The seller must be listed as the owner of record on all documents. Any liens listed on these documents should match up with those provided by creditors and lenders.

If someone else has paid off a debt that was owed by your potential purchase and then sold it to another party without taking care of their obligations first, this could create issues down the road and cause problems with getting your car registered properly in your name as well

Trust Your Gut And Don’t Be Afraid To Walk Away.

When you’re at a dealership, trust your instincts and don’t be afraid to walk away. If something doesn’t seem right, it probably isn’t.

If a deal seems too good to be true, it probably is. These are just some of the things that can help protect yourself during the car-buying process:

Get pre-approved for financing before visiting a dealership (you can do this online or over the phone). This way you’ll know exactly how much money you have to spend before going into negotiations with anyone at all—and if there’s any wiggle room when talking price down with salespeople or finance managers!

Know which credit score range fits your needs. There are several different credit scores out there—so make sure that yours is accurate before applying for loans or credit cards in general (and also don’t fall for any scams involving fake “free” services like checking).

Finding a great deal on a car is possible, if you know where to look. Check out our list of top 15 ways to score a great deal and start saving money on your next vehicle purchase.

Never Provide A Deposit Before You’re Sure You Want To Buy The Car

A deposit is money that you give to a dealer in order to hold the car while they search for financing or sell it to someone else. You may be tempted by how much money this saves, but don’t fall for it! There are plenty of other ways to get financing and no reason why you should pay extra just because some shady dealer needs cash now.

Brand	Deposit Policy	Refund Policy
CarMax	No deposit required for in-person purchases	Refundable deposit required for online purchases
Tesla	No deposit required for test drives; $100 non-refundable deposit required for vehicle orders	Deposit can be applied toward vehicle purchase
AutoNation	No deposit required for in-person purchases	Refundable deposit required for online purchases
Carvana	Refundable deposit required for online purchases	Full deposit refund available before delivery; partial refund available after delivery
Ford	No deposit required for in-person purchases; refundable deposit required for online purchases	Refundable within 14 days of purchase

To avoid deposit scams when buying a car, it’s important to know a brand’s policy before making a purchase. While some brands require deposits for online purchases, others may not require a deposit at all. Be sure to read the fine print and ask questions if you’re uncertain.

If you do end up providing a deposit, make sure you understand the refund policy and know what steps to take if you change your mind. By doing your research and carefully considering each brand’s deposit policy, you can protect yourself from scams and make an informed purchase.

Don’t Say Yes To After-Market Add-Ons Until Your Paperwork Is Signed.

Don’t say yes to after-market add-ons until your paperwork is signed.

Dealers sometimes try to pressure you into buying add-ons like service contracts, car warranties, paint and fabric protection, insurance and even tire rotations.

These products aren’t necessarily bad things to buy if it makes sense for you. But these products are usually very expensive for a reason: the dealer gets paid by the company selling them. They may not be worth what they cost in terms of value or money—and they should never be bought on impulse at the dealership showroom table.

Don’t sign anything until you have read it carefully and know what it means.

When you get home with your shiny new car, take out all those papers that were waiting for your signature at the sales office and look them over before signing anything else related to this purchase!

If there is something in any contract that doesn’t seem right or doesn’t match up with what was discussed with the salesperson during negotiations, call back immediately before signing anything additional based on verbal promises made by someone who might no longer work there when something goes wrong later down road due do non-disclosure clauses…or worse yet.

that person could be working elsewhere now too but still has access information about previous customers which could end up costing YOU thousands upon thousands more dollars than if only one thing hadn’t been overlooked in all haste just prior leaving dealer’s lot.”

Don’t let car buying break the bank. With our guide on surprising car buying tips, you’ll learn how to save money on everything from financing to negotiating, and make your purchase a smart investment.

Take Your Time When Acting On Limited Deals And Discounts

When you’re buying a car, it’s easy to get excited about the prospect of getting a great deal. But before you commit to anything, do your homework. Don’t be afraid to walk away if the price is too high or you feel that the dealer is trying to pull one over on you.

Make sure that any discounted fees or payments are real—not just some sort of bait-and-switch tactic designed by shady dealerships looking to take advantage of uninformed customers who are desperate for a bargain.

Ask questions and research everything—from financing options (there are many ways to finance your vehicle) and insurance policies (they can vary widely depending on where you live) down through details such as whether taxes will be included in their advertised prices (they might not be).

Finally, never sign anything unless you’ve read every word carefully first or had an attorney look things over for potential issues like hidden fees or other potential pitfalls before putting pen to paper

Deal	Brand	Time Limit	Discount
November to Remember Sale	Lexus	Limited Time	Up to $5,000 off
End of Year Clearance Sale	Ford	Limited Time	Up to 20% off
Black Friday Specials	Best Buy	24 hours	Up to 50% off
Cyber Monday Deals	Amazon	48 hours	Up to 70% off

When shopping for limited deals and discounts, it’s important to take your time and do your research. Check brand websites and social media pages for upcoming sales, and be sure to read the fine print before making any purchase.

Some sales may have specific time limits, while others may offer discounts only on certain products or models. By taking your time and doing your research, you can be sure you’re getting the best deal possible on the brands and products you love.

Conclusion

In today’s world, it’s easy for car buyers to get confused about the best way to protect themselves from scams. Whether you’re buying a new or used car, there are certain steps you can take to avoid getting taken advantage of by unscrupulous sellers.

The most important thing is not to rush into any decision without doing thorough research first and consulting with trusted friends and family members who have experience in this area.

By keeping your eyes open for red flags at every step along the way from researching prices online through test drives and negotiations—you’ll be much more likely to avoid being scammed!

FAQs

What should I do before buying a used car?

Before purchasing a used car, it’s important to do your research. This includes checking the car’s history report, getting a pre-purchase inspection, test driving the car, and negotiating the price.

How can I spot a car buying scam?

Some common signs of a car buying scam include the seller asking for payment before you’ve seen the car, or offering a deal that sounds too good to be true. Be wary of sellers who refuse to let you take the car for a test drive or won’t provide a vehicle history report.

Is it better to buy a car from a dealership or a private seller?

Both dealerships and private sellers have their pros and cons. Dealerships tend to offer more protections and services but charge higher prices, while private sellers may offer better deals but don’t always provide the same level of support.

How can I negotiate the best price for a used car?

To negotiate effectively, start by researching the car’s value and coming prepared with a max price in mind. Use your research to make a reasonable offer, be prepared to walk away if necessary, and consider negotiating other aspects of the sale, such as financing or trade-in value.

What should I do if I suspect a car buying scam?

If you think you may have fallen victim to a car buying scam, report it to your local law enforcement agency and file a complaint with the Federal Trade Commission. It’s also a good idea to contact your bank or credit card company to make sure you haven’t been scammed out of any money.