Disappearing Trade-In Scam

Who’s involved? – New and Used Dealerships

What is it?  -  This scam happens when buyers bring their current car into a dealership with aspirations of making a good deal to get top value for trading in their old for a new one.  Dealers can very easily alter text and phrases to make your trade-in disappear from your contract.  Another way this works is when they advertise that they will take any trade-in, even if the vehicle doesn’t work.  The reason they implement this strategy is because they can buy your car from you for almost nothing.  While this doesn’t seem so bad, it’s the fact that the money they paid for your car is money you are already entitled through a rebate or incentive.  Most dealers don’t want you to know that and so they advertise accordingly by appealing to your willingness to get a deal on your beat up car.

How to avoid? – Avoiding any trade-in scam is easy; don’t trade your car in.  Sell it privately or through a selling agent.  Take the profit you made of that car and put it towards payments on your new car.  If you must trade your car in, do not expect to get the best value for it.  No dealership will offer you top dollar for a trade-in.  If you do go this road, make sure you see the savings from your trade-in in the contract before you sign it. 

Terms & Trigger words to avoid? – “Push, Pull or Tow”  This is the type of advertising slogan dealerships use to convince you to trade your car in with them.  While not all dealers who do this are out to rob you, a vast amount more than you may think know this trick and use this ploy to play consumers.

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