What Is the Most Common Auto Loan Scam?

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What Is an Auto Loan Scam?
How Do Car Loan Scams Work?
Car Title Loan Scam
Change in Auto Loan Term Scam
Yo-Yo Financing Scam
Credit Score Scam
Car Loan Fees Scam
Packing Payments
Upfront Fees
Cosigner Scam
Guaranteed Loan Scam
Tips for Avoiding Auto Loan Scams
Get Independent Financing
Know Your Credit Score
Blank Fields on Contract
Unclear Interest Rate
Conditional Loan
How Do You Know if You Have Been Scammed?
The lender changes the terms of your loan without your consent
You’ve paid upfront fees for financing and never received a loan
The lender is charging you an exorbitant rate of interest
The lender rushes you to sign a loan contract with blank fields
You buy a vehicle and the dealer later asks you to return the vehicle or pay higher interest.
What Can You Do if You Are a Victim of an Auto Loan Scam?
What Should You Do if You Can’t Afford Car Loan Payments?
The Takeaway
Frequently Asked Questions
About the Author
Sulaiman Abdur-Rahman writes about personal loans, auto loans, student loans, and other personal finance topics for Lantern. He’s the recipient of more than 10 journalism awards and currently serves as a New Jersey Society of Professional Journalists board member. An alumnus of the Philadelphia-based Temple University, Abdur-Rahman is a strong advocate of the First Amendment and freedom of speech.
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