Oct 07 2008
Is the price listed on the contract different from what the salesperson said you would pay?
One form of auto fraud is the practice of quoting a lower price that the number that is ultimately included in the contract. This bait-and-switch tactic, often targeted at non-English speaking customers, can be applied to the vehicle’s price, the price of accessories, service contracts, and any other cost item.
Another variation on this practice is to confuse customers about the “out the door price.” Customers are led to believe that the total cost to drive the car off the lot is X, when in fact the total cost is actually much more. For example, a customer who is told, “The out the door price is $15999”, may find that the $15999 price does not include $1500 in accessories, $1200 in taxes, government fees, etc.
To avoid this practice, read every line of the contract carefully. Make sure you distinguish between the following:
(1) CASH PRICE VEHICLE (which includes only the price of the car BEFORE all the other costs),
(2) CASH PRICE ACCESSORIES (which includes any add-ons like alarms),
(3) TOTAL CASH PRICE (which includes the price, the add-ons, taxes and service contracts),
(4) SUBTOTAL (which includes everything under TOTAL CASH PRICE plus any government fees); and
(5) AMOUNT FINANCED (this is the amount of credit that you are taking out, which is generally the SUBTOTAL minus the downpayment and other rebates.
