Being as informed as possible about the transaction when purchasing an automobile is a good idea. Numerous studies indicate increased internet fraud using escrow companies and fictitious autos. Being aware of the warning indicators can help you avoid costly errors and save time in the future. You can purchase a car online if you need more time to complete all the steps required to buy a vehicle from a dealership.
Which of the following is NOT be a warning sign of a scam when buying a car or other big purchases?
A) Bieng forced into warranties
B) excessive fees
C) Add- ons that seem too good to be true
D) A price that fits comfortably in your budget
The correct Answer is D): A price that fits comfortably in your budget.
The amount you should spend on a car depends on your budget, financial situation, and personal preferences. Generally, the total cost of owning a car should be at most 15-20 % of your monthly take-home pay. This includes the purchase price of the vehicle as well as ongoing costs like insurance, maintenance, and gas. It’s essential to consider your overall financial situation and choose a car that fits your needs.
Scams people pull when trying to buy a car
- I owned and operated a small, licensed used vehicle lot. A man came in to buy a car he had looked at earlier in the week on a chilly day when I was the only customer and very busy. He requested that I put a number on his trade because he didn’t have it the first time, and if that were okay, we would proceed with the deal.
- I left the family I was with to take a test drive in his immaculate Lincoln while they debated whether to purchase the vehicle they had just driven. It lasted for three minutes, and the car was powerful!
- When I returned, the family decided to buy, and they went to the bank to receive the money. This afforded me some respite, so I wrote up the second man, collected his money, deducted the trade-in amount, and sent him packing.
- I proceeded to prepare his trade for selling the following day. There wasn’t a drop of coolant in the radiator. The head gasket on the automobile was blown! This is difficult to conceal because these vehicles typically release steam from the exhaust as the coolant evaporates and seeps into the combustion chambers.