Dealer Fraud

Now it really gets interesting. Now the salesman starts on you. First they’ll take the payment approach to selling you. That means they’ll avoid the price and keep the sales conversation focused on how much monthly payment you can afford.
It used to be people bought cars based on price, but then we all started living on budgets and car dealers quickly learned that fact. Then they learned that if they could get you to stretch your budget “just a little more”, then they could pump up the price and that meant more profit for them.
Expect the salesman to start with a monthly payment that is two or three times what you told him you could afford. They don’t expect it, but figure the shock will get you used to the idea of having to pay more than you thought you would when you walked onto the lot (never mind reality). They usually figure that as your monthly payment goes up, the loan length goes down, but watch out for the guy who does it both ways.
Part of all of this is “the ether.” “Putting the customer in the ether” means getting the customer excited (or distracted) so they do not realize what is happening to them in the deal. That’s when the real profit can be made.

Tip: The first step to buying a car is making your budget. Know how much monthly payment you can really afford before you ever go car shopping. And then, aim to spend at least 10% less than your budgeted amount. That way you still have some “room” left over. Never go above the number … no matter what. The more you stick to you number, the better off you will be! Don’t buy more of a vehicle than you can afford. If you do, the next time you go shopping you can be sure you’ll hear the salesperson say you’ve got negative equity (whether you really do or not).
And when you make your deal, before you sign the contract, make sure that everything (absolutely everything) has been written down on the contract. Remember: oral promises aren’t worth the paper they are written on.
Also before you sign the contract, make sure there’s nothing in it about “arbitration” or a “jury waiver” either. If you see anything like that, just take that ink pen and scratch it out on every single copy! An honest car dealer is not afraid of a jury made up of ordinary people. So if you see an arbitration clause or jury waiver in the contract, you know what kind of car dealer you are dealing with … don’t sign the contract at all! You don’t have to give up your legal rights just to buy a motor vehicle.

Some dealerships “pack” a contract with add-ons like service contracts, warranties, options and accessories that you did not ask for. Common add-ons are “protection packages” and rust-proofing.

What you should do:
· Before you sign, look at your contract carefully for any items you did not authorize .
· If you were told something was included for “free”, check to see that the item is in the contract and that you were not charged for it.
· If you find any items that you don’t want, tell the salesman that you will not pay for it. Put a line through the item in the contract and reduce the Total Sale Price by that amount.

One purchased a 2003 Audi from online car dealer. The car was listed as mint condition and was priced at the “excellent condition“. The salesman said that it did not have any known problems. He paid over the phone. He flew out that weekend. After flying out they had him sign an “As Is” form “since it had no warranty“. The car had a small crack that the customer wasn’t told about. Since he was already out the flight ticket and would need a return ticket it seemed like it was ok to eat that cost.

24 hours later the car broke down. $1,400 to replace all cylinders and lots more. They had the car in the shop for a week. 10 hours out of the shop it broke down again. 3 new cylinders and a new engine. $5,700 for that cost. This doesn’t include $2,000 in flights, hotels, car rentals, and other costs… not including the frustration.

He called the car dealer. The dealer said you signed an as is and its out of state so don’t try reversing the charges. It seemed like he knew that he could lie all he wanted and the customer could do nothing about it. He told the dealer he will file a better bureau report and whatever other legal actions I could. The dealer didn’t seem to care.

Stay away from these guys. The customer did have 12 cars to choose from and this was the best deal … or so it seemed based on the misrepresentation.

One of the favorite tricks of salesmen and dealerships is the old "bait-and-switch" which is still as effective as ever. Typically a salesperson will tell you all the things wrong with a model that you had carefully researched and were intent on buying or leasing. Do not be dissuaded by such attempts to "educate" you. The only purpose for a salesman to provide such disparaging information is to induce you to trade up to something which is more expensive and which provides more profit to the dealer.

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