How To Avoid The 'bump' Car Buying Scam

What is the "bump" scam and how do I avoid it?

The 'bump' scam is allowed to a certain degree. What I mean by that is when you are approved for a certain percentage of interest on your loan, the dealer is allowed, state by state, to add a few percentage points to cover their costs for doing all the financing for you. Where this can get ugly is if they're bumping that percentage five, six, seven, eight or more points over the term of a loan, that can mean thousands of dollars out of your pocket and into the car dealer's hands.