How To Find and Avoid Scam Dealers in Used Luxury Car Market in 2021

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Are you a status-conscious person? Then you don’t want to drive a small or compact car. And an average mid-range vehicle is also something for the sales force.

What you need is a pre-owned luxury car, a full-size SUV, or a fancy sports car because these mobile pedestals usually cost a multiple of the average new car when you buy a new car. You also maintain a healthy savvy and be aware of your status; it just has to be a used one.

Used luxury cars are getting popular

When we think of luxury cars, an image automatically comes to mind with vehicles from Audi, BMW, Mercedes-Benz, and so on. However, know that the real owners of these high-end brands are, in fact, the same ones that build the best popular cars that run in the city center.

That’s right. Volkswagen, for example, owns several luxury car brands: Audi, Porsche, Bentley, and Lamborghini. The second, even, was acquired by the German automaker only in 2016, when it bought the remaining 50.1% of the brand’s shares – by that time, it already had 49.9%.

What makes it worth choosing a second-hand luxury car. First of all, the sales offer includes luxury used cars are rare—as a rule, preserved in a similar condition, garage, well-kept. These are prestigious cars forgiven for not having the latest technological innovations. Luxury cars that only depreciate up to a point and then acquire collector value!  

Is it worth buying new cars from the showroom, which will lose half of their value after three or four years? A used car is a much cheaper alternative, and the effect of time biting is often negligible.

Also read: How to save money while buying a used luxury car.

How the used car market has grown up in the recent year

Most people are always thinking about increasing social status through a more expensive and better-rated car. Naturally, the thought reaches even the most beautiful luxury cars on the market. Lamborghini, Mercedes-Benz, Ferrari. These are some of the brands most desired by consumers in the auto market. And this desire can be fulfilled in a second-hand luxury car market. 

The rapid reaction of the used vehicle market was one of the main highlights of the automotive sector in the past few years, including 2020. Even in a year marked by the covid-19 pandemic and all the economic drama brought about by it, the segment showed significant increases throughout the entire period. The second half culminates in a 23.6% growth in sales volume recorded in December 2020 compared to the same period in 2019.

Although it brings positive expectations for tenants and, of course, all areas that correlate with the pre-owned luxury car market – especially the automotive aftermarket, benefited in all its links by the expansion of the business involving used cars -, the closing ‘with last year’s golden key does not guarantee continuous, uninterrupted growth for 2021.

According to the analysis institute, the only risk to the holding of the value of second-hand cars is the policies of incentives for the new market initiated by governments, ” which could introduce some distortions and weigh on prices in the used car markets.”.

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How are local dealers taking advantage of the used luxury car market?

With the growing market of the 2nd hand luxury cars, the resale values of the brand new car also begin to lift, and that’s where the local dealer takes advantage of it. However, the pre-owned luxury market is growing rapidly, and more people are going with it.

One of the factors that make this market enjoyable is that its devaluation is less than that of a 0-kilometer model. It tends to punish more the fact that it goes second hand than a third one. E.g., a BMW’s second-hand car price will devaluate at a much lesser rate than a brand new model. It is mainly because over time, and in good condition, they become a relic.

Likewise, it must be taken into account that the number of spare parts available in the market is limited, so their devaluation tends to be much lower.

Whether due to the vehicles’ quality or the reliability they generate, they are perceived by consumers as a very attractive option. In fact, according to the Automotive Consumer Radiography of the site, corresponding to the second quarter, the most requested models on the portal are pre-owned BMW cars and Mercedes, while Audi is not much behind.

In addition, the segment corresponding to units whose value is between 20 and 50 million was the only one that reported an increase in its offer during the second quarter, equivalent to 1.3%.

How fraud dealers cheat on car buyers?

When you intend to buy second-hand luxury car, the methods and variants of the scams are many and resourceful. In the following, we have listed the most important tips for you so that you can recognize a manipulated speedometer or a forged checkbook and not be cheated out of your money when buying a car.

Speedometer tempering:

Fraudsters who want to get a higher BMW second-hand price manipulate the speedometer to influence the mileage in their favor. This fraud is highly illegal and is punishable by imprisonment or a fine following the Road Traffic Act if reported to the police.

A speedometer is manipulated with a screwdriver to buy a car fraudulently. Therefore, always ensure that the mileage corresponds to the vehicle age and the general wear and tear.

Carefully check the trustworthiness of the seller:

Fraud while making payment in advance. Also, be careful if you are asked first to deposit a small amount to redeem your Audi second-hand in question at a bank before changing the owner.

Fraud method “down payment”:

The seller demands a down payment from you to release the vehicle documents from the bank. The seller keeps this, and you will never see him again.

The solution to this: Do not make advance payments lightly! Such demands indicate fraud. If in doubt, make a deposit yourself at the bank or have a deposit given to you as security.

Car purchase fraud: dealer in disguise:

Another common method of fraud is where a car, whether an Audi preowned, is offered on the pretext of a private sale, but the seller is a dealership’s frontman. He intends to circumvent the liability for material defects, which does not apply in the case of a private sale by excluding the contract.

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What strategies do fraud dealers follow to suck car buyer’s wallet

When it comes to car-related business, tricksters can make a quick euro. We have compiled the most common tricks used by car gangsters and tell you how to protect yourself from fraud when buying a car.

Sign” blow:

In this case, the scammer attracts attention by advertising the vehicle, say BMW m5, second hand below the market value on the internet. When someone shows interest and wants to make an appointment to see the vehicle, the advertiser asks for a “sign” while the buyer is already on the way.

Advertisements for the so-called “advance payment.”:

A well-known method of extorting money in the form of an advance payment for cars that do not exist in reality.

The fraudsters operate via apps or software specialize in this. They have mastered the art of hacking into the accounts of companies operating for years and displaying “bargain” cars under their banner for a day or two.

Hiding Serious defects:

Quite often, after purchasing even a high-end car like second-hand Mercedes, a buyer discovers a lot of serious defects in it, which the seller “forgot” to mention.

Sometimes the restoration of a car for subsequent operation significantly exceeds its cost; that is, the purchase of a vehicle costs 2-3 times more than the estimated amount.

At the same time, today, sellers have learned very well to mask visible flaws that will make themselves felt after some time.

How to detect untrusted dealers and stay away from them?

Buying any second-hand luxury car can be extremely stressful. Even the most thorough checking of the car may not be enough when dealing with a dishonest seller. And turning back the meters and refreshing the interior is just the beginning of a long list of tricks that dishonest dealers use to cover up the dubious condition of a used car. What should you pay attention to the most?

There are some ways to defend yourself against the fraud dealers and the risks with buying used cars so that you can more safely enjoy the benefit of paying less and getting a good deal. See what they are below!

Check the documentation:

This tip applies to those who buy pre-owned Audi cars from individuals and those who resort to a store. You must carefully analyze all vehicle and salesperson documentation before payment and contract signing.

Don’t get emotional:

Buying a car can be very emotional, either because it is the purchase of the first vehicle or because you find the model like a second-hand Porsche that you always wanted, for example. In addition, good salespeople have great convincing power. So it is important to take help from a professional to put your feet on the ground at that time.

A professional checkup:

Take the car to your trusted mechanic and ask him to do a thorough inspection, both of the engine, its components and parts, and the paint and body shop. This analysis can show possible defects and even if the car has already been involved in claims. All of this information serves to support your decision and price negotiation.

Be careful with private purchases:

Of course, buying an Audi a5 second-hand from a store is not a guarantee that you will have no problems with the vehicle, but when choosing to negotiate between individuals, the risks of falling into traps can be greater.

How to find genuine and certified dealers in the used luxury car market?

One of the aspects that most worried motorists when buying a used car is the vehicle warranty issue, and a genuine dealer will always provide you with a documented warranty for the luxury car, and the solution to this is getting in a deal with a certified dealer.

The impression is that being a second-hand Mercedes, the vehicle is somewhat less protected in the face of early breakdowns. Still, in reality, dealers generally grant 12 to 24 months of warranty, which is mandatory for professional sellers.

Research about dealer’s reputation

As we said, dealerships and resellers can also present risks when buying used luxury cars. Therefore, the idea is that you do good research about the company, analyzing how long it has been in the market, checking if there are complaints about it on the internet and, even, if there are pending lawsuits.

When purchasing a car from a dealer, the seller must enter into a sales contract with the buyer that includes a certificate of conformity of the vehicle and must inform the consumer about the condition of the BMW 5 series second hand that you have chosen by providing the latter. With the possibility of evaluating the conditions of the vehicle better, check the state of wear and inquire about which defects are possibly covered by legal guarantees and which are not.

It will also be mandatory to indicate any need for extraordinary maintenance interventions explicitly.

If you buy a second-hand car that does not meet the level of conformity as indicated in the purchase agreement, then the buyer may require that the seller carry out the replacement or repair of the damaged component.

A Genuine second-hand Luxury car dealer will take care of the car even after delivering it to you and provide you warranty. The warranty also includes 24/7 roadside assistance, so in case of breakdown, you can count on roadside assistance that can be contacted through an always active call center and the possibility of requesting the temporary use of a replacement car.

In this particular case, the warranty is even higher than that imposed by law on purchasing a new car which is limited to two years.  All these things make it mandatory to choose a trustworthy provider.

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