Sure, most auto salespersons are honest folks but there are also too many of them who like to cheat their way to profits. Here are the top 5 scams that you absolutely must avoid or you could be paying way too much for your car.

1. The dealer sells you a car and allows you to take it home on the spot. You finance your car through them but a few days later, the dealer calls and tells you that your financing has been rejected. You’re then told to re-apply your financing through them at a much higher cost (meaning a much higher profit to them). Arrange your own finance or if you must do it with them, don’t take the car home immediately. Wait until the financing is completed first.

2. The dealer offers to window etch the VIN in your car window. The cost ranging from $300 to $1,000. When truth is, any decent auto parts store will have the DIY window etching kit and it only costs $20.

3. The dealer charges you a preparation fee, sometimes even as high as $500, just to peel off the plastic protection, test drive and put in the fuses. Most MSRP stickers indicate that these costs have already been covered by the manufacturers. Be sure to point this out to the dealers if you’re asked for the preparation fee.

4. The dealer tells you that your car is a very popular one and so to sell you the car they have to add “Market Adjustment Fees” of thousands dollars. Yes, a car can be popular, but if it’s in stock, it’s not worth paying extra. You should never pay for than the manufacturer’s MSRP.

5. When you take a loan on your car, the dealer will say that you have to purchase an extended warranty as the bank requires it. Avoid it by asking the dealer to write down in papers that it’s required for the loan and in a flash, the dealer will most likely find some excuse to remove it as a requirement. The extended warranty is a great thing to have but you can get a far better deals elsewhere but not from the dealers!