[CLICK IMAGE FOR LARGER VIEW]
Buying and owning a car is expensive. How expensive? You might be surprised. There are several more hidden costs to owning that new car than the sticker price on it suggests.
In fact, by owning a car you become an instant target of an entire army of scam artists and con men attempting to squeeze just a few more dollars out of your pocket.
If you’re a car owner, here are 10 scams that auto professionals run. Avoid them, and you’ll have hundreds of extra dollars in your pocket at the end of the year.
Your first step to avoiding car-related rip-offs is to never purchase premium gasoline. Despite what your local gas station might say, your car doesn’t need premium gasoline to run. And premium gasoline has no real effect on how your car performs, whether it’s driving on the highway or down city streets.
You can save a significant amount of money each year by only filling up with regular gasoline. If you drive the average of 12,000 miles each year, and your car gets 20 miles-per-gallon, you’ll save $120 a year by avoiding premium gasoline. That’s because premium gas usually costs about 20 cents more per gallon.
Signing up for a rental car is also a prime time to be taken advantage of. Rental car companies love to charge extra fees or entice you to sign up for costly upgrades. Avoid these, and, again, you’ll save significant dollars. For instance, rental companies have been known to charge a markup of 500 percent for providing child car seats and 300 percent for the temporary insurance – which most drivers don’t need – that they offer.
Make sure, too, always return your rental cars with full gas tanks. If you don’t, your rental car agency may charge a markup of as much as 40 percent on the gas it puts into the tank itself.
Be wary, too, whenever your auto mechanic tells you that you need new brake pads. These pads generally cost your mechanic about $10. If all four of your pads needed to be replaced, then, it should cost you about $100, factoring in labor charges. Most mechanics, though, will charge you from $250 to $1,000 to replace all four brake pads.
Oil changes are also dangerous territory. The staffers at oil-change shops are trained to sell you additional products such as new air filters and windshield wipers. Most times, you don’t need these. And never buy high-performance oils. These are more expensive but, like premium gasoline, they do little to help your vehicle run better.
You might think using eBay or craigslist to buy your next car is a great way to save money. And it can be. But if you’re not careful, it can also be a great way to lose money, too. Many scammers hide behind the layer of anonymity that these two online marketplaces provide.
If you are buying through either craigslist or eBay, be sure to watch out for the signs of a scam. Never work with a seller who is always out of town and unable to meet with you. Don’t work with sellers who require a deposit before you can take the keys for a test drive. And always avoid offers that sound too good to be true. Most times, they are.
Predatory tow trucks also cause serious financial headaches for car owners. You know the type: Working on a quota system, they lie in wait for motorists who accidentally park in an illegal space. Seconds after the driver leaves the vehicle, the tow truck emerges from its hiding spot, ready to charge a huge towing fee. If you see a tow truck operator hooking up your car, do everything you can – short of threatening the operator – to keep your car right where it is. Offer to pay your fee on the spot, and try to negotiate a lower rate. If the operator refuses to listen to you, call the police. You do have rights, even if you are illegally parked.
Auto insurance renewal time is another opportunity for big rip-offs. Many companies will try to slip in higher rates while providing you with the same service. Keep an eye out for rate increases. If you don’t like what you see on your renewal notice, shop around; there are plenty of insurance company competitors who’d love to nab your business.
Insurance companies also rip you off by charging you higher rates for low deductibles. Most times, unless you’re one terrible driver, paying these monthly fees will cost you more than it ever saves you.
Here’s an example: If you pay $100 every month because you carry a low deductible, and you have one accident that you have to pay $250 to cover thanks to the low deductible, you’ll end up paying $2,650 after 24 months. If you instead pay $50 a month but carry a high deductible, and you pay $1,000 for one accident, you’ll pay $2,200 after 24 months. That’s a savings of $450 a year. Those savings will be even higher if you don’t get into an accident.
Be careful, too, when taking out a car loan. Lenders love to squeeze extra costs out of you. Make sure before signing up for any loan that you know the interest rate that you’ll be paying. Don’t agree to any extra fees. And come up with as large a down payment as you can. This will save you significant money in interest fees over the life of your loan.
Finally, never trade your car in with your auto dealer. Dealers always offer you far less for your old vehicle than you could get by selling it on your own. Dealers are counting on the fact that most people don’t want to bother with selling their old cars. If you’re willing to do this, though, you’ll save a lot of money.
Just because you own a car, doesn’t mean that you have to get ripped off. Memorize the scams presented here, and next time you get an oil change or rent a car, you won’t feel like you’ve been pick-pocketed.
code in the box below to your website.
