OFFICE ADDRESS
The Law Offices of Hovanes Margarian
13425 Ventura Blvd.
Suite 303
Sherman Oaks
CA 91423
818.990.0418
On the transaction, one of the biggest profit source for the dealer is considered to be the trade-in price being offered to you. Before trading in a vehicle consumers try to get information from the Kelly Blue Book and web sites to help them determine the price of the used vehicle. However, it is very difficult to to determine the value of the trade in vehicle and most consumer are willing to accept a lower trade-in than what the vehicle is actually worth. This is when the dealers use their tricks to scam the consumers. The dealer knows that when the consumer is tempted to buy that new car …
Categories: General Articles
Tags: automobile fraud, avoid a scam, scam, trade-in, trade-in price
Though “bait-and-switch” is one of the oldest dealer tricks, it is still the most favorite tricks of salesmen and is as effective as ever. What the salesman will do is basically inform you about all the problems and defects of the vehicle you intent on buying or leasing. Be aware that the dealer does this only to introduce you another vehicle and get you into another deal, which is more expenive and profitable for him. The best way to avoid this scam is not to be dissuaded by such attempts of the dealer. __________________________________________________ [ To Learn more our services and areas of practice, please visit our website at …
Categories: General Articles
Tags: Bait and Switch, dealer tricks, scam
Be aware of the dealer who claims that they have to charge a certain price because their lenders or the leasing company will not allow them to sell below a stated price. The truth is, lenders and leasing companies have have nothing to do with the car’s selling price. This is just another good excuse for the dealer to make profit. Also some dealers may state that you purchase the extended warranty or service contract. Remember that this is not mandatory and is not required by the lender or leasing company. This is simply another way for the dealer to earn more money by selling you extra items. __________________________________________________ …
Categories: General Articles
Tags: automobile fraud, Certain Price Charging, extra items, service contract, the extended warranty
Actually, “holdback” is profitable for the dealer whereby the dealer pays from 1% to 3% less than the invoice price which may be shown to you by the sales manager. First the dealer buys the vehicle from the manufacturer at the stated price on the invoice. Later, when the dealer sells the car the manufacturer provides a rebate to the dealer for the costs of maintaining that vehicle in its inventory for a period of 90 days. Taking into consideration that most vehicles are sold more rapidly, i.e., within 90 days, some part of that rebate or reimbursement from the manufacture is the net profit for the dealer even …
Categories: General Articles
Tags: "holdback", automobile fraud, invoice price
How this scam happens: You purchase a new car, sign all paperwork and drive home with your new car. About a week later the car dealer calls and informs that he was able to get a better deal for you a lower monthly payment and less APR. All you have to do is go back to the dealership and resign the documents. You go down to the car dealer to re-sign the paperwork, and this is where a scam occurs. You discover that the dealer changed your loan from 48 months to 60 months, or even 72 months. In fact, what the dealership did was increasing the APR on …
Categories: General Articles
Tags: avoid the scam, Bonus Scam, monthly payment, re-sign the paperwork, scam
Many consumers consider buying a car as one transaction, but it’s, and car dealers know this. Actually, there are three transactions, which include the new car price, the trade-in value, and the financing. And all these three transactions are viewed by car dealers as ways to make profit. Make sure you treat each of these transactions separately and negotiate each one of them. If you get a new car for $200 over invoice, but only receive $1,000 for a trade-in car that’s worth $2,500, you haven’t done as well as you could. Before going to the dealer do a research about each part of the transaction. Get as much …
Categories: General Articles
Under California Law the consumer may cancel the contract to purchase or lease of a new or used vehicle for numerous reasons. Basically, California consumers are allowed to cancel an automobile purchase or lease agreement if it is based upon dealer fraud, mistake, or significant non-disclosure or concealment. The basic concept is that there must be a “meeting of the minds” in order for a contract to be valid. A contract that is put in writing tends to eliminate significant “he said-she said” arguments over what exactly was agreed to, since the significant terms of the contract are usually contained in the writing. Pursuant to California law the contract …
Categories: General Articles
Tags: California law, dealer fraud, misrepresentation, protections against misrepresentations
There are numerous types of misrepresentation, but the most commonly used are the following: The dealer may inform you that the vehicle is new, when in fact it is used or reconditioned. Remember, that if the vehicle has several miles on the odometer, it was not likely a “new” vehicle. The dealer may also give inaccurate representation concerning the quality or benefits of the vehicle. Often, the dealer will fail to disclose information regarding the history of the vehicle. For example he may hide that the vehicle was a “demonstrator,” was previously totaled due to body damage or flood, has a salvaged title, was a previous “lemon law buy-back”, …
If you are thinking about buying a new vehicle you should be aware that car dealers and finance companies defraud the consumers in many ways. Below is the list of most commonly used tactics. Remember, that not all of these are considered to be fraud. Phony contests or “specials” False advertising Being charged more than the advertised price “Yo-yo” deals, in which the dealer requires a second loan agreement Bait & Switch – on price, year, model, new versus used, or finance terms Switch from sales to lease financing Fraud concerning negative equity in the trade-in “Stealth credit check” during the test-drive Failure to properly value or credit the …
Consumers are protected from different deceptive practices used by car dealers by a number of federal and state laws. Today auto dealer fraud is a very broad area and may occur during purchase and financing of the vehicle. There are many different types of auto fraud and claims are against insurance companies, car dealers and manufacturers, extended warranty companies, service contract companies and car finance companies. One common type of auto fraud is the sales of salvage, flood and prior rental cars without disclosure of their past history. The sale of vehicles with a rolled back odometer or without disclosing the true mileage is illegal. It is also illegal …
