Ford offers three types of Mustang to choose from; you can go with the standard or base V-6, the GT V-8 or the spectacular Shelby GT supercharged V-8. You should not waste your money trying to acquire the older 2010 version as the 2011 renders it inferior and you should definitely not have much expectation in the 2012 version as they will not have major differences. The engineers working on this new version have really brought out the muscle car aspect of the Mustang and incorporated advanced technology to make one awesome super car.

The Ford engineers have souped-up the engine and increased the horsepower to a staggering 305 in just the V6 model. The engine block is now made of aluminum thus lighter than the normal cast blocks. The smooth touches on its exterior are more defined than ever but it still retains the signature grille, emblem and the side stripe. The 2011 Mustang is user-friendly because even though there is an increase in horsepower, speed in general and the installation of a 6 speed gearbox, fuel consumption is an outstanding 30 miles per gallon.

As far as the shape, that is something that is a looker as well.  The shape of the new Mustang borrows a lot from the design on the Mustang from the 60s and 70s but with a few touches on the tail and the nose not only to make it look modern but also contribute towards the streamlined shape for more speed and road stability.

Changes and Upgrades
Though you cannot spot the major differences between the 2011 version and its predecessors by just looking at it, if you drive the car you will have an experience out of this world. It is only then that you will realize the effort put into this version by dedicated Ford engineers.

Major changes can be noticed beneath the hood as the 3.7-liter 2011 Mustang has 95 hp more than the 2010 version which is a 4.0-litre. This makes the 2011 version more economical but with a more powerful engine.

The newer version has been fitted with twin variable camshaft timing and a genuine dual exhaust which together work to increase the rpm to a staggering 7,000, which is 1000 rpm over the previous version.

Technology has advanced and Ford has not been left behind, a lot of electronic work has been done to improve the ease of driving a Mustang including:

• There is use of computerized operations including a Ford’s MyKey teen-driver-safety installation. With this you can limit the speed and the audio volume of your car. You can also keep the traction-control engaged and activate unbuckled seatbelt reminders.
• The side mirrors are now powered with blind spot reduction using convex inserts.
• The 2011 Mustang now sports halogen headlamps and three-lens tail lamps with sequential indicator illumination.
• The switch to a powered steering has reduced drag considerably and consequently reduced the fuel consumption.
• There is an introduction of a software; “Active Nibble Control” which monitors the condition of wheels and compensates for any road clowning and crosswind.
• You will also have cruise control with power adjustable seats, air conditioning and automatic climate control, power windows and door locks with a remote lock and unlock function, stability control and ABS brakes.
• The 17” standard wheels have been replaced by the 19”alloy wheels with performance tread. The suspension is more reinforced and firmer.
• There is an audio navigation system, an electric sunroof option and a convertible version for convertible lovers, heated seats with airbags designed to protect the head and torso.
• All the options have an MP3 fitted with a 1,000 watt output.
• There is also the use of an infotainment sync system developed by Microsoft for Ford. It has USB and iPod ports and a Bluetooth phone link and music streaming.
• There are 100 fancy shades available for the illumination of the dashboard.

2011 Mustang Performance

The 2011 Ford Mustang has been tested on all aspects regarding performance by subjecting it to extreme conditions.  For a 3.7 liter with a speed of up to 160mph, the 2011 Mustang has got it figured out. The combination of so much power with low fuel consumption of up to 31 miles per gallon will be in the interest of most drivers.

This car also offers world class stability with an aerodynamic shape which gives the car a sport look and allows top speeds. Front and rear anti-roll bars have been made thicker for safety precautions. With the new improvement in the breaking system, you will be sure to avoid those small accidents. With between 7,000 and 8,000 rpm the 2011 Ford Mustang is surely a speed vehicle and with all the improvements and upgrades its performance is better and more fulfilling.

The 2011 Mustang GT

Finally the return of the 5 Litre mustang! This brand new 5.0L powered Mustang will pump out 412 ponies and 390 lb-ft of torque. To get all of the power to the ground you get the option of either a 6 speed automatic or a 6 speed manual transmission. All of that and a estimated fuel economy of 25 miles to the gallon? That sounds pretty kick ass to us.

“This all-new 5.0-liter engine is the next chapter in the development of the world-class Mustang powertrain portfolio,” said Derrick Kuzak, group vice president, Global Product Development. “It’s a thoroughly modern engine for the times, delivering the performance and fun-to-drive factor that enthusiasts want, while improving fuel economy.”

How much for the super car?

For the quality and features of a 2011 Ford Mustang you will have to part with between $22,000 for a base version and $54,000 for a Shelby GT500 convertible depending on your specifications. You can choose to drive the base Mustang version, The Mustang GT, or the Mustang Shelby depending on your wallet and needs.

This is not expensive for people looking for speed, power, style, comfort and high performance not forgetting the fuel economy attribute of the 2011 Ford Mustang. You should also budget for transport shipping charges when planning to make a purchase.

For every version there is premium trim that comes with an additional $2,500 price tag. These premium trims have added accessories that make them more expensive. For example they will have leather interiors, aluminum accent dashboards and dressed up gauge clusters with automatic color illuminations. For an automatic transmission you can add an extra $995 for a base or GT model. You can also have a navigation kit installed at a price of $2,340.

In simple words, whatever extra accessory or feature you want in your car will demand you to cough up some extra cash. Although this does not mean that the 2011 Mustang in its base version is not a wonder. All in all the 2011 Ford Mustang gives you a ton of bang for the buck, some raw muscle and classic lines, and even some modern comforts.

Final Thoughts from the editor

I owned a ’95 5.0L mustang back in the day and it was one of the most fun cars I’ve had the chance to drive. Sure it didn’t handle well, it over-steered all the time and had too much weight up front… but I loved that car and it peeled rubber with no problems at all. Had an old 5.0 Litre at some point? Let me know in the comments below.

Features, Updates, and Upgrades:

Now, both the GLK350 (the rear wheel drive model) AND the GLK350 4MATIC (which is an all wheel drive machine) host a 268 horsepower and 258 lb-ft Torque. Some of the updates to the new vehicle class include a more usable Headlight Control mechanism and Premium Leather Steering Wheel. The 2011 Mercedes-Benz GLK class also offers some fantastic safety improvements, such as the new Knee Airbag, Driver/Passenger Pelvic Airbags, and a brand new

Rear View Camera. These safety amenities were added to the 2011 class to keep it at the same level as the rest of Mercedes’ mainstream models. They even added a new paint to the GLK, an option to coat the vehicle “Pearl Beige Metallic.” The additional color will be limited in production and is likely to carry a little extra in price, but if really speaks to you, we recommend you go for it.

The New GLK Sports Package:

In regards to the aesthetic enhancements of the GLK, improvements to appearance and performance, the GLK even offers a new AMG Sports Package that includes AMG bumpers, LED

Daytime Running Lights, Aluminum Roof Rails and 20-inch AMG 5-twin-spoke wheels. The AMG package that Mercedes provides certainly does make a dramatic difference in how the vehicle looks and feels, and it even provides the user with a much-improved driver handling. However,  this package may not be everybody, as some may find the driving experience to be stiff and uncomfortable, it depends on personal preference for the most part. It is highly recommended that you test drive the vehicle with and without the AMG package to determine if you’ll find it worth spending the extra dollars on.

The GLK Positioning:

In addition to GLK series, Mercedes also offers a full spectrum of Sports Utility Vehicles, such as the M-Class Mid Size, the GL-Class – Full Size, and the High-Performance All-Terrain G Class SUVs. The GL is the full size, where the GLK is a short version, utilizing the K to represent “Kurze,” the German word for Short. The GLK class is the compact version of the full size GL Sports Utility Vehicle. The similarities between the two models are, however, thin and far between. It seems they share most in common in that they are both SUV’s, but they are quite individual creations besides their common classification.

The Value of the GLK-Class:

Not all that many people understand exactly how manufacturers like Mercedes test their models. Before the GLK-Class became available to the general public, engineers working for the Mercedes-Benz team tested it at extreme lengths. They tested its endurance extensively and subjected it to two years worth of examination and observation to assure its high quality endurance. At the end of the day, with Mercedes-Benz, you get what you pay for. The entire experience is created with luxury in mind, and the price tag reflects value and reason. With pricing that starts under $35,000, it’s clear to see the value in this Sports Utility Vehicle.

How does the Mercedes-Benz GLK-Class compare to the C-Class?

These two models are unlikely to compare, one being a Sedan and the other being an SUV, but oddly enough there are some points of comparison. For instance, the price on both models start for under 35 grand and yet the GLK-Class provides much more in just about every field: engine, horsepower, capacity, and seating. It is possibly the most valuable luxury vehicle on the market, and you’re sure to get the most for your buck. It even has a more luxurious aesthetic to it, making it a fine selection for everyday travel. The C-class, however, does offer some value in its sport look, sleek design, and precedential resale value, which can come in handy for many leasers.

In sum…

This vehicle is pure value, and when it comes down to it, you’ll be hard-pressed to find another SUV with the luxurious offerings of the GLK Class without a higher price tag. The true gold of this vehicle is how much it offers for such a reasonable price, from its World Class design, safety technology, performance, amenities, and of course the powerful brand of Mercedes-Benz. If you’re looking for a luxury sports utility vehicle with plenty of function and a reasonable price, the Mercedes-Benz GLK Class may be the model to go for.

Specs and Gallery:

• Engine: 3.5L V 6 double overhead cam with VVT ( 10.7 :1 compression ratio ; four valves per cylinder)
• Fuel: premium unleaded ( 91 octane)
• Fuel consumption: city= 16 (mpg); highway= 21 (mpg); combined= 18 (mpg); vehicle range: 313 miles
• Multi-point injection fuel system
• 17.4 gallon fuel tank
• Power: 268 HP ( 200 kW) @ 6,000 rpm; 258 ft lb of torque ( 350 Nm) @ 2,400 rpm

Essentially, all an extended warranty is is an insurance policy you take on your automobile. It is just a way to avoid those unpredictably but outrageous repair expenses. The term warranty is less accurate than insurance, in this way. However, similar to auto warranties, these do cover repairs or any sort of maintenance you encounter during the time period the policy is instated. But with the traditional warranty, you’ll purchase them as part of the product price. Extended auto warranties, on the other hand, are more like contracts. Service contracts if you will—they’ll run a separate cost and you’ll need to buy them separately as well.

Now, that doesn’t mean it needs to be done on a different day or place. In fact, you can purchase the extended warranty at the same place and day you purchase your vehicle, or even many days or months later. If you are the kind of person who needs full preparation at all times, just in case—the extended auto warranty is undeniably right for you. Especially when you consider the always rising cost of vehicular repair, the benefits of being protected are not difficult to see.

Once you determine that an extended auto warranty is the right decision for you, you’ll need to select a plan that addresses your needs. We understand this can seem a tad daunting, so we’ve listed a few points to consider below.

Your Pre-Existing Warranty:

Suppose you just purchased your vehicle brand new—examine its factory warranty and determine its value to you. For instance, suppose your warranty is for a couple of years or pre-determined amount of miles.

Well that’s fine, unless you plan on keeping it for more than a couple of years or driving more miles than what is pre-determined. If you do plan on keeping the car for a short period of time, then an extended warranty is hardly necessary. At the end of the day, it’s all about how long you choose to use the car. If you can predict your utilization of the vehicle to transcend the parameters of the original warranty, an extended plan is certainly in order. When buying a used vehicle, be aware that inherent warranties are usually packed with much less coverage. If purchasing a late-model pre-used vehicle, it may still be under original warranty or be part of a “Certified Used” program. These usually extend factory warranted to pre-owned automobiles. If your vehicle is under no (or just insufficient) warranty, the extended warranty is simply the natural choice.

The Reliability of Your Model:

It’s always a good idea to do some research before you buy. Even after you buy, it can be effective in figuring out of the extended warranty plan is a good bet. Look at how reliable the model vehicle you are buying is. While this might not be the one stop answer to determining your future repairs, it does give you a hint of what to expect, so keep it in mind when making important warranty decisions.

Warranty Provider:

Keep in mind that most warranties are only as good those who provide it to you. With an extended auto warranty, it can be backed either by an independent warranty company (or an aftermarket) or alternatively by the manufacturer of the vehicle. You’ll find that just knowing who is underwriting your policy can provide you with insight into the strengths and weaknesses of contracts you are considering. For instance, warranties backed by the manufacturer are generally much easier to use, while aftermarket values are typically cheaper. Always do additional research into the warranty practices and offerings of either the manufacturer or the aftermarket company, as the quality can differ from brand to brand, instance to instance.

Reparation Policies:

There are a few extended auto warranties that require your repairs to be done at the dealership from which it was purchased. This is nothing but restrictive and often becomes inconvenient for you. It’s ideal that you prefer a warrant that allows you some selective freedoms when choosing a repair facility, one that is more convenient for you. For instance, if you’re on vacation or a road trip and you need a repair, is it really practical to drive all the way back to the original dealership just to receive repairs? This can be a deal breaker.

Exact Coverage:

You’ll need to know exactly what is covered, and what is not, by whichever extended warranty you choose.

Does your service contract cover breakdowns and just usual wear and tear, and what are the specifics of a “breakdown warranty?” Also, a few entry level contracts won’t cover ABS brakes, which is an amenity gaining rapid popularity. If your vehicle employs the ABS feature, you’ll need to find an appropriate extended auto warranty. Additionally, overheating is usually not covered by warranties, even if it is proves to be not your fault. If an overheating fiasco is caused by a faulty radiator, you’d have quite an expensive repair bill to pay. Before investing in any warranty contract, make sure to familiarize yourself with its areas of coverage and regulations. While some contract-to-contract instances differ only in subtly, they can make all the difference in certain instances.

Cash for Repairs:

There a few different ways in which warranties can operate. With some, you pay the bill, and then send them a receipt so they can compensate you accordingly. However, as you could expect, the warranty companies relax and take a few months before sending you these hefty sums. For best results, find a warranty that pays the dealership directly via credit card.

In the long run, you just need to compare all options and weigh the odds before making a final decision in regards to warranty. Thankfully, the internet makes this considerably easy, many companies sell these contracts directly online, or at least offer instance quotes. With these features, you’ll be able to obtain a decent idea of what your desired plan will cost you. But at the end of the day it’s just like anything else, you best bet is to be very well informed.

eBay auto auctions have literally exceeded all expectations and have become the number one selling auction. The auctions are not only a great way to purchase a vehicle, they are a great way to sell a vehicle… and, as any motorist knows, both sides of the fence here can be tedious.

For those looking to buy or sell a car on eBay there are a few things you should realize.

Buying Cars on eBay Motors:

If you a shopping for a particular make and model, do some research into the value of the vehicle. Compare the vehicle’s price once you have found it on the online auction to other sites such as Edmunds.com. This will ensure that you do not overbid on the vehicle you are looking to buy.

Do a little research on the seller. Check their background, read their feedback. Send messages and ask questions regarding the vehicle- does it have a warranty…can you provide a detailed description of the car and any existing or past damage, etc.

Record the auto’s vehicle identification number and visit AutoCheck.com and invest $19.99 to obtain the history report of the vehicle. This is a detailed report that will list any potential problems by providing the history of the car including salvage, repairs, accidents, flood damage, and the ownership history of the vehicle. You can also obtain the services of eBay Motors or inspect the car for $99.50.

If the car is being shipped, be sure to factor the cost of shipping by the auto carrier into your bottom line price.

Selling Cars on eBay Motors:

When selling a car on eBay it is important to have a clear description of the vehicle and excellent pictures of the vehicle. You will need the title or registration when creating your listing. If you are not the original owner, state so.

eBay structures their fee for selling by a flat fee for the listing and a fee if you receive a bid on the vehicle.

Always remember to be responsive to any questions from interested buyers you may receive and always give as much information as you can regarding the vehicle.

Have an experience with buying or selling a car on eBay? We’d love to hear it! Let us know in the comments below.

In fact, if it’s your first time buying a new car it can be really daunting to know what to offer the new car dealer.

If you offer the wrong amount, you can not get taken seriously, or even worse totally ripped off. In trying to find you the best car buying tips possible, we went out to try and find some information on other car buyers and what they’ve paid for their new rides.

In comes TrueCar.com.

This little site will tell you what others have paid for the new car that you are looking into buying.

As you can see in the screenshot below, truecar.com will let you know the average price paid for the car compared to the dealer’s cost and the MSRP price of the new vehicle (sticker price).

This information will give you the edge over the new car dealer when you start your sale negotiations.

As always, doing as much research as possible before setting foot in a car dealer is really your best option. There are a lot of different online research tools that you can use to start your new car search aside from truecar.com. You can also:

1. Get an insurance quote for the car you’re thinking of buying.
2. Ensure your credit rating is high enough to get a loan over at creditreport.com
3. Apply for a car loan online, get instant approval, and often a better rate than your bank or your car dealership.

Have any of you ever used this service? Have any other ideas? Let us know in the comments section below this post.

So here’s the list:

1. The first is obvious. These days you can start shopping online. Don’t visit a car dealership without prior information of average price of new or used car that you are considering. Go online and find the car you want to buy. This will save you lot of time as you will not have to go from one dealership to another. Moreover, you will not be swayed by emotions and pay far more than you could have.
2. If you are getting car financing, you must know your credit score. This will help you find the right lender and also let you know the APR you qualify for. Some reputable websites provide new car buying tips online as well as excel sheets for calculating monthly payments on the basis of your credit score.
3. Avoid third party loans at all costs. There is never a free lunch and if you let the salesperson arrange a car loan for you, you are going to end up paying higher monthly payments. Just as car shopping can start online you can also get a car loan approved online.
4. Get your old car evaluated before you offer it as a trade-in. There are websites where you can get to know how much your trade is worth (like Kelly Blue Book). However, remember that all assessment of old cars is only indicative of book value and not set in stone. The actual value depends upon on how well you have maintained the car. The car dealership is buying your car for reselling and you are likely to get a lower trade-in value than if you sell it yourself.
5. Almost all the car sales scams take place when it comes to settling payment. There are lots that the finance department will do to extract more money from your pocket. Apply your mind and decide whether you really need extended warranty, GAP insurance and other products that they are offering.
6. Always keep affordability and cash flows in mind and never let excitement get the better of you.
7. Get insurance quotes. Factor the insurance cost before you finalize the deal. You may not know how much your monthly payments will be until you get an insurance quote.
8. Learn car buying negotiating tips from online sources. MSRP is only a recommendation and not necessarily the price that car dealerships will agree to sell at.
9. One of the biggest mistakes that buyers commit is on add-ons. Use your negotiating skills here also to get the best deal on these as well.
10. Choose add-ons that you must have and discard the ones you can do without. Add-ons are a lot cheaper in the open market.

Anything to add to the list? Have a car buying horror story? Let us know in the comments!

Lots of people agree that car leasing is the more attractive option when you need to get a new car… but are they wrong?

There are certainly advantages to car leasing – but only if you don’t get sucked into a car dealer scam in the process… and the truth is: a lot of people get a crummy deal.

Leasing regulation does not require as much disclosure as buying a vehicle. This has opened the door for a lot of shady car dealers to work on your pocketbook and take you for all that you’ve got.

Take a good look at the common car leasing scams and make sure you protect yourself.

Ridiculously low interest rates:

Some dealers quote a lower interest rate than what you’ll actually be paying. They do this by either purposefully quoting the “money factor” as the interest rate or calculating the loan without amortizing some closing fees, like the security deposit, into the loan lease.

Take the money factor for example: this is typically expressed as a four decimal digit, something like 0.004. Some dealers quote this as a 4% interest rate when in fact you need to multiply it by 24 to get a rough idea of the interest rate on your loan.

In this example, the interest rate is a much higher at 9.6% than the “quoted” rate of 4%. Make sure you crunch the numbers and understand the formula they use to calculate their interest rate. Look out for any fees not factored into the calculation.

If you’re not satisfied, never enter into a lease agreement.

Terminate your lease early for a low penalty

This is a long standing car dealer scam when it comes to leasing. You ask your dealer how much you will pay if you want to terminate your lease and he tells you: “You can pay only a small early termination administrative fee of $250″…. he/she is misleading you.

What he is quoting is only the small administrative penalty of early termination. In fact, there is a much stiffer penalty called an early termination fee and this runs into thousands of dollars that comes on top of the other administrative early termination fee.

Do not confuse the early termination administrative penalty with the termination fee. Read the small print carefully and know just how much you will get charged should you terminate your lease before its scheduled end.

Pay for an extended warranty you don’t need

Here’s the scam: the dealer slips an extended-warranty into the deal, but it’s already part of your lease! So essentially you’re paying for two warranties, and I don’t have to tell you that that’s a rip off. Another angle is he might even try to sell you on a 36-month warranty when you’re only leasing the car for a 24-month term.

You warranty is already factored into the lease, so don’t get sold on extended warranties by a slick salesman.

This is one of the best car tips I can give you about car warranties: avoid extended warranties provided by the dealer… shop around and find the best price on your car warranty. You’d be surprised what you can find online.

“Zero dollar security deposit”

Any dealer who advertises a $0 security deposit is leaving out some of the details. A security deposit is always factored in the lease under the provision for disposition fees. I may sound like a broken record, but always ALWAYS read the fine print on any agreement that you sign.

There are of course a few common problems that you need to look for when test driving a car.

The first stage of your used car test drive should involve testing all of the functions of the car:

You need to test the head lights, heater, A/C, radio, interior lights, mirrors, brake lights, turn signals, defrost, safety belts, windshield wipers and seats for how they function.

Plus, you want to check out any additional options like electronic seats, seat warmers, GPS etc.

Starting the car:

Before you start the car, be sure to check if the car is already warm. If it is, the owner may have pre-heated the engine before you arrived so that the car will start easier… if this is the case, be aware that the car may have cold start problems.

Open the hood before starting the car. Check to see if there are any wet parts of the engine, this will tell you if there are any leaks.

Start the car and pay attention to whether the engine strains at all when starting. This may mean the battery or electrical system is on it’s way out.

Once the car has been started, go back to the engine compartment and check again for any wet engine parts. Some engines will leak only when running.

Put your hand on the fender of the vehicle to check if you feel any harsh vibrations. The car should run fairly smooth and not shake the vehicle.

Finally, if the car has power steering, make sure that the steering wheel can be moved smoothly back and forth and there are no strange noises when you do this. If there is a loud whine when you move the steering wheel this may mean the power steering pump is fried.

Test Driving the Car:

Finally it’s time to take this car on the road! Through the entire test drive process, be aware of the sounds of the car. Does the brake pedal make noise? Does the engine make a strange noise at a certain speed? Does steering the car make a strange noise? These are questions to be asking yourself the entire time you are test driving the car.

The first thing you want to notice about the car is how the transmission shifts:

If you’re test driving an automatic car, you should almost not even feel the shift when driving slowly. If the shifting takes longer than 3 or 4 seconds this is a major problem.

If you’re test driving a standard car, the shifts should be smooth and easy. If the car grinds into the next gear then the synchros are probably in need of repair.

While driving down a quiet street, take your foot off the gas and let go of the steering wheel (CAREFULLY!). If the car pulls one way or the other, there is most likely an alignment problem. Also, push the brake lightly and if the car pulls left or right under braking there is most likely a problem with the braking system.

Make sure you take the car both up and down hills. Does the car shake when braking down a hill? If so, the brakes need service. Does the car handle accelerating up a hill? Or does it cough and lose power? This could mean a number of engine problems that need to be checked out.

Finally, you need to take the test drive to the freeway:

This step is really important. Any major problems with the car are going to be very apparent when riding on the freeway.

Here are some things to look out for:

• Does the car pull to the left or right?
• The brakes pulsing or shaking when applied.
• Excessive wind noise when all of the windows are closed.
• Does the car seem to “float” around? There may be suspension problems.
• Does the engine sound normal?
• If you stomp on the gas pedal does the car cough or hesitate before accelerating?

If any of the problems above are apparent during your test drive, you should have the car checked out by a mechanic before purchasing.

Also, be sure to check out our articles on car dealer scams so that you can protect yourself when buying a used car.

Have anything to add to the list? Seen any weird problems during a test drive? Let us know in the comments below.

So when it comes time to buy your next car, you’re going to look for the best deal possible… but looks sure can be deceiving.

A number of car dealers will run a scam that is based around taking advantage of people with low credit scores. We call this the “sorry but we thought you look like a sucker” scam.

Here’s how the scam works:

You’re at the dealer and you see the car that you want. It sparkles, it shines and you’re in love with it. And even more amazing, but the dealer says you can get that kick ass 0.1% APR financing rate on this beauty… that’s the best deal you’ve seen!

So you setup the paperwork, you SIGN the paperwork, you grab the keys and drive that brand new beast home with a huge grin on your face.

The first week or two go by, and you’re still loving your new ride. But the phone rings… it’s the dealer who sold you the car. He says that the financing fell through and that you need to come in for some more paperwork.

“What do you mean the financing fell through?!? You said it was a done deal… we even SIGNED the paperwork!”

“Sorry, but the deal was dependent on credit approval and you did not qualify.”

Usually, you’ll have to pay a further down payment and your finance rates will go up.

How does this scam work:

The car dealer can find out your FICO score pretty easily. In fact, nowadays your credit score can be brought up instantly… and the thing is, if it’s below a certain level, you’re never going to get approved for that amazing APR rate.

The dealer knew you wouldn’t get approved, but it’s much easier to get you in that car with the false hope that you will get the better rate, than to sell you on the same car that will cost you even more. Plus, after you’ve driven it for a week or two, you’re pretty much best friends with your new shiny wheels so you’re less likely to put up a stink.

The car dealers prey on people with low credit scores, so it’s always a good idea to go in prepared.

How to avoid this scam:

The first thing you can do is not get car financing from a dealer. You can get some pretty great deals either online, or from your credit union or bank.

Getting a pre-approval from your bank or credit union for a car loan before going to the dealer can save you a lot of grief, but knowing your credit score will also prepare you.

Sometimes, there are so many fees that it can be confusing to know which ones are really legit.

One such fee is the dealer prep fee.

The dealer prep fee is a scam… plain and simple. Here’s why:

The dealer prep fee is supposed to cover the dealer’s time for things like removing the cardboard carpet covers… the plastic on the windows… and taking the car for a test drive.

And even though the dealer will charge you something like 400-500 bucks for this service, it seems pretty expected that they would want you to pay for their service, right?

WRONG!

The thing is, most manufacturers already pay the dealer for this service by including this service in the price of the vehicle!

So where is that extra 500 bucks going? Straight to the pockets of the car dealer.

The manufacturer wants the vehicles to be delivered in the same way for each customer. That’s why they include this service in the price, so that they can get the dealers to follow their steps correctly.

Though the dealer prep fee isn’t necessarily common practice, it is out there… and you should know about it.

If you do run into a situation where a dealer wants to charge you the dealer prep fee, tell them to remove it from the invoice. If they refuse, then you can let them know that you’ll find another dealer that wants your money. After all, just think about how many other scams this dealer is trying to push on you if they are willing to try and pull the dealer prep fee off on you?

If you’ve had any experience with a dealer prep fee, let us know in the comments below.

While you’re at the dealer, don’t forget to try and get as many car insurance discounts as possible too. Check out a few of the most common discounts here.