Do you remember the spot delivery scam? The lower payment scam is quite similar to it. It is another type of financing fraud that fraudulent dealers love to practice.
Usually, people turn to the dealership to arrange their loan agreement. The dealer processes the paperwork signed by you and sends it to the bank. Everything seems to flow smoothly when suddenly, after a couple of days since your final purchase or lease agreement; you receive a phone call by the sales manager informing you they have made a mistake in the paperwork. Accordingly, you rush to the dealership with a frightened look, thinking they might even repossess the vehicle. Here you are informed there was a “slight mistake” in the paperwork that may oblige you to renew the contracts already signed and replace them with the new ones having new terms.
It is important to note that a lower payment scam is something that can occur both with car purchasers and car lessees; little time after the purchase or lease agreements have been signed.
After entering the dealership, the vehicle owner will have to either agree with the new lease or purchase contract that will already include altered numbers (especially a higher monthly payment) or pay a huge lump sum, or what is the most dreadful; give the car back to the dealer.
Usually, in the case of lower payment scam, no car repossession takes place as the sales manager’s main aim is to make the naïve car owners pay them extra money.
What is interesting here is that the dealers manipulate their customers in such a way, that these people do not even suspect they are being ripped off. They think they are going to pay lower monthly payments, while in reality the contrary occurs.
If there comes a day when you must face a thing like this, tell the sales manager talking to you on the phone, you agree with the existing amount of monthly payments and you do not want any changes made in the document. If they insist on your re-signing the contracts, tell them you want to see their request in writing (this will serve as a proof in the court). However, if everything goes to extremes like repossessing the vehicle, do not make obstacles for them; let them take the car without any aggression. Your wisest step in such a situation will be contacting a skilled auto dealer fraud attorney who will help you out of this mess.