Saturday, 1 June 2019

Scams by Car Dealers: Tips to be smart



Owning a vehicle of your own is a great feeling. The feeling is even more incredible if it is your first car or motorcycle purchase. But in all the excitement, you might not pay attention to all the details and information provided to you by the vehicle dealer. Because of which you might get scammed and lose your hard earned money. You might have paid for certain services that you do not require. There are various ways that a car dealers might use to scam their customers. So, here are a few tips to make yourself smart:

Ex-showroom price:

The ex-showroom price a particular vehicle varies from region to region. But the major point that you must pay attention to is that if there is any hidden charge added to the ex-showroom price of the vehicle by the dealer. Certain dealers tend to add extra charges for "extended warranty" or "Teflon coating" in the ex-showroom price and do not tend to disclose until and unless you ask them about it. So, be aware of the actual ex-showroom price of the vehicle and always ask the dealer directly if there is any charge included in the ex-showroom price of the vehicle.

Insurance:
Every vehicle plying on the road must have insurance. Insurance will save you a large amount of money in case of an accident. So, you must have your vehicle insured and renew it when needed. But while paying for an insurance cover you must ask the insurance provider to disclose all the information about the cover. You must know about the benefits of the cover and always compare it with other insurance covers. While the cheaper cover might save you a few bucks during your initial investment but might burn a hole in your pocket or have you run around for your claim. Therefore, always check if your insurance covers 100% of your damage or not, how many claims can you do, is it cashless or not, does it have any other benefits or not.

Finance:
Financing a vehicle purchase is rather common as it saves one from investing a huge amount of money at a moment. It also helps as it provides the deficit fund that you require to purchase the vehicle. But if you are not aware enough then you might get charged a huge rate of interest against your loan. Always compare the rate of interest of various financiers. The lowest the best as it will save you a huge amount of extra money that you would have paid for a loan with a higher rate of interest. Also, check if the loan has a reducing rate of interest or a fixed/flat rate of interest. A flat/fixed rate of interest means that you will be charged the rate of interest against the initial loan amount throughout the loan tenure. But in case of a reducing rate of interest, although the EMI remains the same, the interest amount decreases as the interest is charged against the reduced principal amount and not the initial loan amount. Therefore you end up paying a lesser amount of interest in case of a reducing rate of interest.

Manufacturing Date of the Vehicle:
If the vehicle you are purchasing has a manufacturing date of the previous year then there is a great chance that the vehicle might be subjected to schemes/offers/discounts. Therefore, ask and check the manufacturing date of the vehicle and ensure that you inquire about any offer or discount related to the vehicle.

"It is mandatory":
Some dealers while selling their vehicle might tell their customer that particular service or product might be mandatory to buy from the vehicle while purchasing a new vehicle or else they cannot get their vehicle delivered. These so-called mandatory services generally include paint protection (Teflon coating), chassis paint, accessories, or insurance. But it should be noted that these products or services are not mandatory to have from the dealer while purchasing their vehicle. So, if the dealer forces you to buy a particular product or services then you can call the manufacturer's customer service to confirm the same.

These are only a few points that are being shared in this article but there are many more ways that a dealer might use to scam their customers to sell their products. So, research about the product before purchasing and also read all the documents carefully.

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