``Top 10 Car Dealer Scams of 2001''

    FORT LAUDERDALE, Fla.--Dec. 17, 2001--

    Complaints of Dealers Forcing Car Buyers to Purchase VIN Window
    Etching in Order to Qualify for Car Financing Top This Year's List

    Which scams have you fallen for? CarBuyingTips.com, a consumer advocate web site released its fifth annual list of the "Top 10 Car Dealer Scams For 2001."

    1) The "VIN No. Window Etching" Scam

    2) The "Financing Fell Through" Scam (Spot Delivery Scam)

    3) The "Straw Purchase" Scam

    4) The "Forced Warranty" Scam

    5) The "Dealer Prep" Scam

    6) "Additional Dealer Markup (ADM)" Scam

    7) "We'll Payoff Your Loan No Matter How Much You Still Owe!"

    8) The "Forced Credit Life Insurance" Scam

    9) The "Leasing Is Better Than Buying" Scam

    10) "Hide The Monroney (MSRP) Sticker" Scam

    "Topping our list for the second year is the "VIN No. Window Etching Scam," said Jeff Ostroff, President & CEO of ConsumerNet, Inc., which runs CarBuyingTips.com. Ostroff said: "Dealers slip in a $300 to $900 VIN No. window etching fee, lying to consumers that the bank requires it, or they won't get approved. They trick buyers with promises of big insurance discounts for window etching." According to Ostroff, the average insurance savings is only $6 annually, and many insurance companies give no discount for it. "Most people don't know this overpriced extra costs only $40 at auto glass shops, and auto parts stores sell the kit for $20," said Ostroff. The "Financing Fell Through" scam has also seen major increases in 2001. Dealers sometimes call customers weeks after a purchase to say financing fell through and demand more money from the customer, and increase their payments.
    According to Ostroff, some dealers prey on consumers with bad credit who are desperate to sign any deal. He warns that dealers lie to buyers, telling them they did not add any extras, when in fact they buried it in the paperwork. Many buyers don't notice these scams on their paperwork until days later when it's too late. Ostroff advises consumers to just walk out on the deal. "These scams can be prevented if consumers know their rights before they sign. We always advise consumers to arrange their financing first and avoid the scams and cash flow shell games of car dealer financing. Just like a house, you should have your financing in place before you buy a car, not after."
    If you or someone you know fell for even one of these scams you aren't alone. CarBuyingTips.com, a consumer advocate web-site, hears from hundreds of scammed buyers daily. Some of the classic scams are still present this year, along with some new ones. Detailed explanations of these scams and consumer tips for avoiding them can be found at http://www.CarBuyingTips.com.