Dealer Fraud

The ready availability of longer-term auto financing, car loans that are 48, 60 or even 72 months, means that it will take longer to get into an equity position with your vehicle. He also points out that, just because you get into a negative-equity situation with your car loan, it won’t necessarily affect your overall credit score, but it could affect your purchasing power, and it could impact the auto loan rate you get for your next loan.

Extended-term financing isn’t necessarily a bad thing. It all depends on buying habits. That might be OK for the consumer who likes to keep vehicles for extended periods, and that’s certainly a stronger option for all consumers, because of the ever-improving quality of vehicles. It does improve affordability, and as long as it matches up with the trade-in frequency, then they’re perfectly fine and it will work very well for them.

If you’re a consumer who likes to purchase a new vehicle on a fairly accelerated frequency, say 24 to 36 months, then that extended financing may mean that you end up with negative equity when you go in to trade your vehicle.

Probably not.  There is a growing trend to compel arbitration among dealer bodies and their insurance companies.  Insurance companies like arbitration provisions in contracts because the consumer’s rights are severely limited.  A lawsuit brought into arbitration costs the dealer (and its insurance company) less to defend because the arbitration process is typically much quicker than is a civil trial.  The consumer is potentially entitled to less information from the dealer and the case will likely only be heard by an arbitrator - not a jury.  There are upsides for the consumer, which include quicker resolution if you are unable to settle your claim against the dealer. Also, the dealer may be required to pay more of the arbitration costs than the consumer.   However, the opinion of the California courts when presented with this question is to allow the consumer their day in court.

Most of them have the exceptions, while you can better find the extended auto warranty packages from the company at lower cost. Look at the benefits and what it covers because this extended auto warranty has the exceptions and exclusions. Extended auto warranty depends on the plan and type of warranty you choose from the company or manufacturer.

There are different types of extended auto warranties; where it includes the vehicles that are covered with wear and tear that has parts like brake pads, shoes, hoses and clutches. It also covers bumper to bumper services for all the parts of the vehicle. How ever there is some exclusion where it does not cover glass, exhaust systems, tires, airbags, brake rotors, drums etc.Though you purchase your extended auto warranty, your vehicle should be maintained in accordance with the manufacturers or the dealer specification and sometimes there are problems in obtaining repairs for your vehicles, because service contract restricts the choice of repair facility and insist on payment from the consumer.This extended auto warranty plays a key role for filing the claims before an emergency arises, so have a thorough checkup with the procedures and you must be able to provide the proof to service contract administrator that the vehicle is maintained, because they may end up at insurance companies, when dealing with the claims.

Before the customer ever steps foot on the lot, the dealership management has been conducting their periodic sales meeting. Designed to “push” the sales staff to sell, topics include targeting of specific vehicles that are “stale”, drilling inventory knowledge (you can’t sell it if you don’t know you’ve got it on the lot), “spiff’s” offered the sales staff on particular units. Dealer and consumer rebates/incentives may be discussed, as well as current or special interest rates from particular lenders. Leading sales persons are recognized in front of the group and “slow” sales persons may also be pointed out, for obvious reasons. One of the primary purposes is to give the sales staff a “pep” talk and to “push, pull or drag” the staff into an air of sales excitement.

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