Contract Packing Dealer Fraud
Auto dealer fraud is among widespread consumer complaint in the United States. Fraudulent auto dealers are deceitfully pulling out thousands of dollars from consumers. An average consumer not always can guess that he is a victim of car dealer scam. There is a large variety of dealer frauds so it`s not surprising why customers fail to determine them. Car dealerships practice such kind of scams as title washing, false advertisement, contract packing and so on.
Let`s talk about contract packing reported to take one of the leading positions in the list of consumer complaints. Contract scams are perhaps the most discrete form of automotive fraud. Dealers use various tricks to manipulate the customers and oblige them to pay more. In particular, they «pack» a contract with various add-ons such as warranties, service contract and accessories including GAP insurance, paint protection etc. In short the items that the customer haven`t asked for are included in his contract. He usually doesn`t realize that add-on products are optional because the dealer makes it seem as if the they are included with the car.
What a customer should do to avoid contract packing scam.
• Read you contract carefully and make sure there are no items you haven`t authorized
• Fix on the amount of monthly payment. Ask the dealer to disclose real cost of your vehicle, annual percentage rate, finance charge, amount financed, total of payments and total sale price.
• If you agree to buy some add-on products check if the dealer has included only products you authorized and hasn`t packed the contract with all add-ons available.
• Reveal the cost of each products you`re going to buy with the car.
• If you have revealed any product in the contract that you don`t want to buy tell the salesman about it and reduce the Total Sale Price by that amount.
Follow these tips to avoid contract packing but if you believe you`re already car dealer victim, please contact a qualified dealer fraud attorney.