OFFICE ADDRESS
The Law Offices of Hovanes Margarian
13425 Ventura Blvd.
Suite 303
Sherman Oaks
CA 91423
818.990.0418
The amount paid by the customer that covers a significant part of the actual cost of the vehicle is called down payment. This amount is deducted from the actual cost and loan is taken to pay the remaining cost. Interest rates on such loans are greatly influenced by the down payment. However, the decision about how much down payment should be made when you purchase a car should be very wise. The expected down payment of the car should be at least 20 percent of the vehicle cost. This strategy is quite beneficial as it ensures that the buyer is not “upside down”, meaning that the buyer is not …
Categories: General Articles
Tags: down payment, Monthly Payments, Negative Equity, trade-in, Upside down
Often a customer will not qualify for financing upon the terms on the first contract. The customer may be required to increase a down payment, higher APR, etc. in order to qualify for a loan. The dealership has the customer come to sign a second contract with the different terms but backdates the second contract with the date of the first contract. This affects the finance disclosure laws in that the customer is being charged interest for a time period in which the contract is not yet in effect, etc. In addition to making a material misrepresentation regarding when the customer takes the obligation of the new contract, a …
Categories: General Articles
Tags: .trade in vehicle, backdate, backdated contract, down payment, Rewritten Contract
GAP Insurance is also known to the public as GAP Waiver or GAP Addendum. It is an abbreviation for Guaranteed Asset Protection. In case your insurance company declares your vehicle a total loss from accident or theft GAP Insurance will pay the difference between the ACV (Actual Cash Value) your insurance company determines they will pay and what is owed to the bank on your vehicle. An easier way to explain this is that GAP Insurance will pay your negative equity (difference between your vehicles ACV and what is owed to the bank) so that you are not responsible to pay the bank, potentially thousands of dollars, on a …
Categories: FAQ
Tags: Actual Cash Value, down payment, GAP Addendum, gap insurance, GAP Waiver, Negative Equity
Buying a used car isn’t easy because it may entail a series of future problems and financial headaches. That’s why a free vehicle history report is an excellent choice for anyone who is buying a used car. Why? Because it will give you the peace of mind to go ahead with your purchase. For instance, if the car is in such bad shape it’s been given a salvage title, it would be far better to know that before you sign on the dotted line. Unfortunately, there are many unscrupulous people ready to misrepresent the condition and value of the cars they are offering for sale. The most common of …
Categories: General Articles
Tags: Odometer Rollback, reset odometer, salvage title, unhooking odometer, used car, used car scams, vehicle history report
An increasingly common car sales tactic is the “spot delivery” or “yo-yo sale”—allowing a buyer to take delivery of a vehicle before the dealer has confirmed that another entity will buy the finance agreement. (Technically, in most dealer-arranged financing, the dealer is the original lender or creditor. The dealer then sells the finance agreement to a third party lending institution). The yo-yo sale involves telling buyers that they are approved for financing on a specific vehicle, having them sign all the paperwork, and allowing them to take the vehicle home. A few days or weeks later, the salesperson calls the buyers and informs them that the financing has “fallen …
Categories: General Articles
Tags: car sales tactic, co-signer, interest rate, sales tactic, Spot deliveries, spot delivery, yo-yo sale
When you purchase a car, truck, motor home, motorcycle, or other vehicle from a car dealer, the dealership obligated to disclose to you the correct information about the history and condition of the vehicle that you are buying. The failure of the dealership to disclose any such information is referred to as dealer fraud. Some other dealer practices that constitute dealer fraud include odometer rollback, the failure to disclose prior accident damage, such as flood damage, the failure to disclose that the vehicle was a lemon law buy-back, and the failure to reveal that the vehicle has a salvage title. Dealer fraud can lead to serious safety hazards, one …
Car dealer fraud is becoming more and more common in our country. The dealer tactics that are being used are so sly that even those consumers who are informed about all kinds of dealer tricks and scams are being taken for hundreds, and often thousands, of dollars. Thus, at the expense of consumers car dealers add many millions of dollars each year to their profits by using these scams. Of course, some profit is necessary, however, consumers are being ripped off beyond reasonable and are buying a lot of useless add-on products and services, the unnecessary markup of vehicle prices, the hidden inflation of loan terms and by other …
Categories: General Articles
Tags: add-on products, auto dealer fraud, car scams, Car-dealer fraud, dealer tactics, dealer tricks, fraudulent practices
When the vehicle has sustained damage as a result of one or more incidents states should issue damage disclosure titles. Salvage titles are issued by the state when an insurance company takes possession of a vehicle as a result of a claim. Most often this happens when a car has been declared a total loss. A rebuilt title is usually issued if a vehicle sustained damage and was rebuilt or reconstructed, then placed back on the road. Junk titles are issued when a vehicle is not road worthy and cannot be titled again in that state.
Categories: General Articles
Tags: Damage disclosure titles, Junk titles, rebuilt title, Salvage titles
Most of the time rental car fleets sell their cars when the manufacturer’s warranty expires. These vehicles are often sold at auctions and are bought by major dealers. You have probably seen the television commercial in which tourists in Hawaii abuse their car with the punch line “it’s only a rental.” Pursuant to California law requirements the rental history shall be clearly identified as such. If the car dealer fails to disclose prior rental history of the car it may be fraud. Remember, the more you know about the car, the better. When buying a car feel free to ask questions to your dealer. Always have the car you …
Categories: General Articles
Tags: Fraud, prior rental cars, prior rental history, rental car
Of course it is difficult to detect when a vehicle’s odometer has been altered, but it is not impossible. Following are some tips to help used car buyers detect odometer fraud: Ask the dealer to show you the title and compare the mileage on it with the vehicle’s odometer. Make sure to closely examine the title especially if the mileage notation seems obscured or is not easy to read. Always compare the mileage on the odometer with the mileage indicated on the vehicle’s maintenance or inspection records. Also, search windows or door frames, in the glove box or under the hood for oil-change and maintenance stickers. Request a Vehicle …
Categories: Helpful tips
Tags: odometer discrepancies, odometer fraud, Odometer Rollback, vehicle history report
