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A uto Dealers have spent many years perfecting the art of separating consumers
from their money, and they have many tricks that accomplish that task admirably. Here are some of the ones that we have seen or heard about most frequently:
THE “SLIDE”:
The dealer inserts credit life insurance, credit disability insurance, or service contracts into the contract without the
consumer’s knowledge or consent. Contrary to what the dealer may say, you may not be compelled to purchase these products as a condition of obtaining financing.
THE “SWITCHED PRICE”:
The salesman quotes you one price for the car or for your trade-in and “mistakenly” types another number into the contract.
“SIGN HERE, HERE, AND HERE”:
The salesman presents you with the contract and, sometimes covering up the text,
directs the consumer to sign in the necessary spots without reading the contract. This is a frequent tactic to prevent the consumer from discovering one of the other “tricks”.
MISSING EQUIPMENT OR FEATURES:
The salesman will say that the car has certain features, trim line or engine-size, when it does not.
“THE NON-DISCLOSURE, ODOMETER DISCLOSURE”:
After the contract has been signed and the down payment made, a written
odometer disclosure stating that the reading is not accurate is provided to the consumer. Frequently, the consumer never notices.
“YO-YO SALE”:
The dealer gives the car to the consumer to take home and, after the consumer shows it off to friends and relatives, the dealer informs the consumer that the
financing wasn’t approved and the consumer needs to come up with more money. Frequently, the financing was never applied for or the dealer knew it would not be approved.
HIDDEN DEALER PROFIT:
Dealers charge a fee for filing the necessary papers with the Department of Motor
Vehicles. Be certain to ask about these fees before you agree to a final price. Remember that they are negotiable, and if you chose, you can file the paper work
yourself. Another place that dealer’’s hide their profits is in fees for services such as “Predelivery Inspection” or blatant charges such as “Additional Dealer Markup” or “ADM”.
“LITTLE OLD LADY FROM PASADENA”:
Remarkably, sometimes car salesmen do not tell the truth about the history of a car.
THE “DO OVER”:
The salesman says that it was necessary to do the papers over, followed by the “sign here, here, and here”. Frequently things were changed or added since the
prior version.
BLANK SPOTS:
The consumer is asked to sign the contract with blank forms that are later filled in by the dealer.
Your best defense against these scams and others is to carefully read your contract before you sign. If you do not understand anything, ask if you can take it with you
and give it to somebody that you trust to read and explain it to you. If the dealer refuses, walk away. It is better to let the deal pass than to agree to something that
you do not understand and that the dealer does not want you to understand. Do not sign any contract if there are any blanks that are not filled in, and make them
put EVERYTHING that is part of the deal into the contract.
If you believe that any of these scams have been perpetrated upon you, seek legal assistance as soon as possible.
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