Financing Fell Through Scam Still In Use
The financing fell through scam is an old dealer trick that’s still in use. The scenario of this car dealer scam is very simple. When a customer with less than stellar credit wants to buy a vehicle a dealer allows him to do take it home before the financing is actually complete. After the customer has taken the delivery of the vehicle the dealer calls him back to inform that the financing fell through and he has to come to the dealership. There he will be told that he must either bring back the vehicle or to rewrite a contract with higher interest rate.
The customer is left confused, how could this happen: the purchase contract was signed and the dealer assured him that everything would be OK. The buyer has already been driving his new vehicle and showed it off to friends, relatives and neighbors. And what to do in this situation when he can`t even have back the old vehicle he traded-in, as it was already sold off by the dealer? He has only two options – to return the vehicle or to sign a new contract with unfavourable terms. The dealer knows that the customer with bad credit history will never be approved for the loan and he`s likely to sign new purchase agreement. There aren`t many options for the consumers with low APR, so the take advantage of the situation. By all means financing fell through scam brings an extra profit to the dealer.
How to avoid financing fell through scam
Never apply to dealer`s financing if you credit history is bad. Get financing approved before going to the dealership. By using your own financing your deal will be based not on monthly payments by on the actual price of the vehicle.
If you have no other option that to get financing through dealer ask him to show loan approval before taking the vehicle home. It can take several days for the loan to get approved, don`t take delivery of the vehicle, wait until you get approved loan agreement.
What to do if financing fell through scam happens to you
If a dealer has called you telling that the financing fell through you`re not obliged to immediately bring the car back to the dealership. First ask the dealer to show you all the paperwork related to car loan. If the dealer won`t satisfy your demands hire an auto dealer fraud attorney who knows everything about tricks the dealers used to practice and will be able to protect your rights.