The Newest Car Dealer Scams
Car dealers do not sit on their hands, they constantly think of new methods to take advantage of car buyers. Here are the most recent car dealer scams.
- Spot Delivery: When you choose the car you like, fill out all the paperwork, the car dealer tells you that although your loan hasn’t been “officially” approved yet, you can drive the car home anyway. Don’t agree! If you do, the car dealership will call you and say that your loan wasn’t approved at the interest rate you discussed. However, you were approved at a higher rate. This signifies that you’ll likely pay thousands of dollars more than you expected. The most awful part is that you probably are stuck, as the loan agreement included a “writ of rescission,” which means that you agreed to pay a higher interest rate if you did not qualify for the loan at the original, agreed-upon rate.
- Mandatory Arbitration or Conflict Resolution: This trick sounds reasonable at first, but be very careful. Once all has been agreed to, the sales person asks you to sign a “Dispute Resolution” or “Conflict Resolution” agreement. The sales person tells you it just says that if a problem occurs, you agree to settle through arbitration and not take the car dealer to court. Though arbitration can surely be a sensible option, the fine print is where the problems lie. So, ascertain the arbitration agreements before you sign them to make sure they are fair, and show them to your attorney.
Anyhow, ask the auto dealer whether or not they require an arbitration agreement before you look at any cars to be able to avoid car dealer scams.
Many auto dealerships need these agreements because they would get sued frequently without them.
If you feel that you are a victim of car dealer tricks, contact a reputable car dealer fraud attorney for help and advice.