Auto Loan Scams: The Tricks and Traps You Need to Know

What are auto loan scams?
Auto loan scams refer to deceptive and predatory lending practices used by dishonest lenders to take advantage of borrowers seeking auto financing. These scams aim to trick consumers into agreeing to unfair loan terms or fees when purchasing a car.

In a typical auto loan scam, the lender will lure the borrower in with promises of very low interest rates or monthly payments. However, after signing the loan contract, the lender will reveal additional fees or change the terms, leaving the borrower paying much more than expected.

Some common auto loan scams include: