🚨 10 Car Dealer Scam Signs Every Buyer Should Know
— Written by The Homework Guy Team
You’ve probably felt it — that uneasy gut feeling when a car dealership starts playing games. And if you’ve watched The Homework Guy Show, you already know we expose the tricks dealers hope you don’t catch. But not everyone walks in with backup.
So here are 10 signs a dealership is trying to scam you — and what to do if you see them.
1. 📜 They Won’t Give You a Written Out-the-Door Price
If they say, “We’ll go over that when you come in,” or “We can’t give you OTD pricing until you’re in the store,” 🚨 red flag. They’re trying to trap you into showing up so they can wear you down.
What to do: Tell them, “No OTD, no deal.” Then walk.
2. 💸 Mystery Fees Start Popping Up
Ever heard of:
- Reconditioning Fee
- Market Adjustment
- Protection Package
- Appearance Package
- Theft Recovery Fee
- Nitrogen Tire Fee
- Window Etching Fee
- Paint & Fabric Guard
- Digital Document Fee
- Dealer Prep Fee
- S.W.A.T. GPS System
- Key Replacement Program
- VIN Guard
- Pulse Brake Light System
- Environmental Fee
- Electronic Filing Fee (E-File Fee)
- Destination or Delivery Charge (already included in MSRP but added again)
These are usually high-markup add-ons dealers pre-install or pre-print onto contracts to inflate profits. Most buyers don’t realize:
- Many of these are optional, but the dealer makes them sound mandatory.
- Some are flat-out fake or renamed so you don’t question them.
- They often appear after you’ve negotiated the vehicle price.
3. 🕵️♂️ They Pressure You Not to Shop Around
“If you leave, the deal’s gone.”
“If you don’t buy now, someone else will.”
Classic fear-based sales tactics.
What to do: Tell them, “That’s okay — I want to be sure.” You’ll immediately see if they panic or backtrack.
4. ✍️ They Ask You to Sign Before You Understand the Deal
They’ll shove forms in front of you and say, “This is just standard stuff,” or “It’s just to get things started.” If you sign anything you don’t understand, you’re handing them control.
What to do: Say these words:
“Can you walk me through every item and explain what’s required and what’s optional?”
They’re legally obligated to answer truthfully.
5. 🧠 They Use Confusing Numbers or Monthly Payments Only
If they avoid telling you the total cost, but obsess over your monthly payment — you’re being set up. They might extend your loan to 84 months just to fit your budget, while stacking on high interest and junk.
What to do: Always ask, “What’s the full out-the-door price — with everything included?” And run the numbers yourself.
6. 🪤 They Say Your Credit Score Dropped… After You Arrived
Some dealers claim your credit score “just came in” lower than expected, so now you don’t qualify for the advertised rate. This is called a yo-yo finance scam.
What to do: Pull your own credit report before you shop. If they claim something different, walk.
7. 💰 They Lowball Your Trade and Hide It in the Paperwork
🔥 The Trick: Trade Bump Then Bury
Here’s how it works:
- You get a laughably low offer on your trade — let’s say $6,000 for a car worth $10,000.
- You push back — and they “magically” bump it up to $9,500.
- You think, “Wow, I negotiated hard!”
But here’s what they actually did…
They simply buried the $3,500 difference somewhere else:
- Overcharged you on the sale price of the new car
- Packed in bogus fees or worthless add-ons
- Inflated the interest rate (especially if you’re financing)
- Extended the loan term to stretch your monthly payment
- Or even moved numbers around in the final contract that don’t match what was discussed
You “won” the trade negotiation — but you lost everywhere else. And you didn’t notice, because the monthly payment still looked okay.
🚨 Why It’s So Dirty
- It creates the illusion of a win — while actually costing you thousands
- It takes advantage of people who focus on one part of the deal instead of the whole picture
- It’s often disguised by fast talk, verbal-only numbers, and a refusal to provide clear breakdowns
8. 🛑 They Won’t Let You Take the Contract Home
If they say it has to be signed right now, they don’t want you thinking clearly. Good dealerships are transparent — scammers push you into decisions.
What to do: Ask for a copy of the contract to review on your own. If they say no — that’s a dealbreaker. There are 3 Key reasons dealers don’t want you taking your contract home:
First. 🧠 You’ll Think — and That’s Bad for Them
High-pressure sales rely on emotional momentum. When you leave the showroom, that adrenaline wears off. You might:
- Rethink your decision
- Compare prices online
- Show the contract to someone smarter (like us 👋)
- Or even… not come back
So they’ll say things like:
“We can’t let paperwork leave the store.”
“This is just preliminary — nothing to take home yet.”
“If you’re not serious about buying, we can’t move forward.”
All psychological games.
Second. 🔍 You Might Spot Something Shady
If you have the contract in hand and a quiet place to read it, you might notice:
- Undisclosed fees
- An arbitration clause you didn’t know you signed
- Different numbers than what was verbally promised
- Add-ons you never agreed to
Dealers don’t want you to compare the sales pitch to the paperwork. The longer you look, the more you’ll find.
Third. 🚪You Might Shop It Around
With that contract, you can now:
- Send it to another dealer for a better quote
- Get third-party financing with the real sale price
- Ask The Homework Guy for a Car Deal Review before signing
They know if you leave with the contract, you’re no longer trapped in their carefully paved “road to the sale.”
9. ⚖️ They Slip in an Arbitration Agreement
Buried in the fine print is a clause that says you waive your right to sue and must use arbitration instead. Arbitration almost always favors the dealer, which is exactly why they want you to sign it.
What to do: Ask if the arbitration clause is legally optional (and it always will be), and decline to sign it if you’re uncomfortable. Using the word legally traps them into admitting there’s no law stating you must sign it.
✅ You can:
- Refuse to sign it
- Strike through the clause
- Ask for a version of the contract without it
🚫 If the dealer says you must sign, that’s legally false. In fact, some state courts have ruled that forcing arbitration may violate public policy, especially when it’s tied to consumer rights.
10. 🛠️ They Refuse a Pre-Purchase Inspection on a Used Car
If a dealer won’t let you take the car to a mechanic — even at your cost — you have to ask: What are they hiding?
What to do: Use a mobile service like Lemon Squad or POMCAR to get an independent inspection. Most cost $150–$200 and can save you thousands in repairs.
🎯 Final Word from The Homework Guy
If you spot even one of these tricks, slow down. If you see three or more — run. Dealers who use pressure and deception are hoping you’ll fold. But you won’t — because you’ve done your Homework.
Need Backup? Hire the Pros.
If you’re unsure about a deal, let us review it for you.
📌 Car Deal Review by Professionals – Learn More
We’ll check every number, flag shady practices, and tell you exactly what to do next when it comes to car dealership scams.