Ask Andy: Auto Fraud Scams - Action News 5 - Memphis, Tennessee

Ask Andy: Auto Fraud Scams

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MEMPHIS, TN -

(WMC-TV) - Don't secure auto financing or negotiate a car deal until you've added this to your file:  http://files.wmctv.com/2011/fightingautofraud.pdf.

That's a link to your copy of How to Avoid Auto Fraud, a nifty little pamphlet courtesy of the National Association of Consumer Advocates (www.naca.net) and the Consumer Federation of America (www.consumerfed.org).

Not only does it offer detailed tips on making the deal and securing the loan, but it also reveals the blow-by-blow of the more common auto sales scams -- and how to fight them.

Scams like:

* YO-YO FINANCING (also called the SPOT DELIVERY)

* DEALER KICK-BACKS FROM LENDERS

* LOAN-PACKING

"Some of the newer scams that are going on in the car market in Memphis," said Kevin Snider, founding attorney of Snider & Horner in Germantown, TN (www.kevinsnider.com) and a certified fraud examiner. "(Scams like) deal-packaging, financing schemes in particular with zero-percent interest. Be careful with these great deals because a lot of times, a great deal is not what it seems." 

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