Dealer Fraud

A car dealer may promise to get you into a car deal for only $389 a month. How does it work? Most often, the car dealer may have factored in a large down payment, or may have stretched the term of the loan for as long as 60 or 72 months.

Make sure to focus on the price of the car rather than the monthly payment. Never answer to the dealer when he asks how much you can pay each month.

__________________________________________________
[ To Learn more our services and areas of practice, please visit our website at www.DealerFraud.org]

Some car dealers will tell you anything trying to persuade you to give up online auto loan quotes and rather finance your car at the dealership.

One of the common things dealers tell customers is that all online car loans are scams and their checks will bounce. The truth is, there are a few bad apples among online lenders, but they are generally easy to spot. There are many companies offering online auto loans, which have been in business for years and are no less reputable than your bank or credit union.

One way to protect yourself against these and other loan-related scams is to get your online auto loan quotes before going to the dealer. This is the best way to know for sure what you have qualified for and not to worry about the dealer using your loan against you.

__________________________________________________
[ To Learn more our services and areas of practice, please visit our website at www.DealerFraud.org]

It’s a very common practice for car dealers to call customers days or even weeks after they have signed the final purchase agreement to tell them they didn’t agree for financing. However, be wary as this is simply another dealer trick.

These dealers think only about their profit and their goal is to put you into a more expensive car. Keep in mind that if you didn’t qualify for $299 per month, how would you qualify for $420? The best way to avoid this car fraud is to have financing in hand before you head to the car dealer.

__________________________________________________
[ To Learn more our services and areas of practice, please visit our website at www.DealerFraud.org]

Sometimes a consumer will not initially qualify for financing based on the terms on the first contract. In order for the customer to qualify for a new loan he/she may be required to increase a down payment or APR for the vehicle. In this case the car buyer is required to go back to the dealership and sign a second contract with updated terms, but the car dealer backdates the second contract with the date of the first contract.
This is a common fraudulent practice used by most dealers when the customer is being charged interest for a time period in which the contract is not yet in effect. This dealer tactic is known as backdating of sales contract or rewritten contracts. Often car dealers don’t inform consumers that they do not have to sign a second contract. Car buyers are not aware that it’s a better option to simply cancel the contract and return the new vehicle. If you choose to cancel the contract the dealer is required to refund the down payment and trade in vehicle.

__________________________________________________
[ To Learn more our services and areas of practice, please visit our website at www.DealerFraud.org]