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Statistics & Facts for the auto industry and tips on avoiding auto fraud

Fraud Complaints & Amounts Paid in the auto industry

 Nationwide Fraud Complaints Chart for all claims

 2006 Fatal Motor Vehicle Crash Report for auto accidents

 One does not have to be a genius here to understand that automotive for car industry has a bad reputation and his wrought with fraud. Reviewing the statistics published on both state and local level clearly demonstrates that one of the leading causes of consumer complaints is automotive fraud.

 This automotive fraud can take the form of warranty fraud odometer fraud consumer fraud or various other types of fraud associated with selling and marketing of vehicles. Let us not forget about bait and switch. So, the one thing these statistics certainly tell you is that you must be careful when you are buying a car.

 You need to do the best thing you can do to negotiate for yourself to be very careful. You need to examine cars closely. Any need to listen very carefully to what the salesperson is telling you.

Avoiding Dealership Fraud and Self Help

 One of the things that in my opinion helps clients individually avoid fraud is taking very good notes, potentially recording conversations, on notice, and walking out of the dealership at least on one occasion.

 If the salesman knows you are a very motivated and very educated customer, meeting educated in the automotive industry, he will have a more difficult time advantage.

If he sees either the pencil or sees you there with the recorder that would be an excellent idea. It puts my notice.

Then actually write things down and requires the salesman to make initials on the paperwork. This is no different than when at the dealerships asked you to sign some documents.

You are free to negotiate as best suits you. If you're taking good notes making the salesman sign on his promises, I'm sure you that he will steer clear of you regard to any bogus or rip-off deals.

 He knows this because if he does not live up to his promises, he will call them out on this.

Point 1. Avoid Fraud

 So, tip number 1 would be to take notes and record conversations and let him know you are doing this. It does not help if he does not know your take notes recording his phone conversations. This can be counterproductive trust.

 I would say the 2nd most important thing to do is to walk out of the dealership at least once during the negotiation process. I don't care what it is for. Tell the dealer you have to your child from daycare. Tell the dealer you're hungry. Tell the dealer you need some time to think. The one advantage that the dealership has is that you were on their turf and that they could throw you off and interrupt your thinking.

 If you leave the dealership you were able to appropriately gather your thoughts think about what was said and regroup. It's like taking a half-time break. I cannot explain how important this is. Plus, you will put the salesman on the defensive which will be immediately and obvious. When he returned to the dealership, if you return to the dealership you will have a tremendous advantage. The salesman now knows that you were in control of the negotiating process rather than the salesman being in control of the negotiating process.

Point 2 to Avoid Fraud

Leave the dealership at least once if not twice during the transaction and make sure you tell yourself this before you go into the dealership.

Overall, the recommendations to avoid consumer fraud and dealership fraud would be preparation. Before the dealership know exactly what car you want, have all the advertisements for the vehicle you were looking act, so you are not surprised when you get a different price. I would also suggest that you have a financing wind up so you can compare financing and you can compare price. I would also recommend that you bring an experienced mechanic with you to the dealership to look at the car to see if it is prior damage. Carfax, in my opinion, is not a completely reliable indicator of prior damage. If you read the disclaimer as you will see what it does not need. There is a tool called a payment meter that measures the thickness of the paint and can tell you where on a specific vehicle there prior painting and you have been can make your own conclusions that there was prior damage. I would suggest to public Carfax or other similar report to determine how long the dealership is at the car, where it came from, if it had been to auction, if there were recalls or any other relevant information which is reported to Carfax. Remember, Carfax does not collect all the information available on a specific car. At best, Carfax collects publicly available information which they pay for. This does not include any database for an insurance company. Insurance companies do not report to Carfax.

Common sense is the best tip to avoid fraud, the rest of many go to the dealership bring somebody with you. Take notes and let them know your taking notes. If they see you are taking notes, they know you cannot be taken advantage of in a writing down everything they say. Holding to the word of what they told you verbally and confirmed by showing in the note that you made. Do not try to make friends with the salesman and do not that the make friends with you. This is a tactic to put you off guard to trust them so they could do as they wish, and have you bought whatever is best for their profits/commissions not necessarily for your family. This is not true of all carports and transactions however you need to be aware and make sure you take appropriate precautions to avoid any issues. If you are prepared, are knowledgeable and ready to negotiate you should do very well.