Avoid the Newest Car Dealer Scams (1)
It never stops to amaze us how cunning some car dealers are — to all the time they are trying to find new ways to take advantage of car buyers. Here are two of the newest car dealer scams that we have not written about yet:
1. Spot Delivery: You have chosen the car you want, filled out all the paperwork (including the car loan application with the car dealer’s finance department). The car dealer notifies you that even though your loan hasn’t been “formally” approved yet, you can drive the car home anyway.
Here is what can happen if you do that: A few days later, you will get a call from the car dealership saying that your loan was not approved at the interest rate you discussed. However, you were approved at a higher rate.
This means that you must pay thousands of dollars more than you expected.
Further, if you try to call off the deal, the car dealer will either tell you that they already sold your trade-in so you have no options, or they simply will say they’ll sue you if you don’t agree to the new terms. (Such a typical example of car dealer scams)
The most awful part is that maybe you are stuck, because 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.
Be careful. Do not take your new car home from the car dealer until all the details are clear, or else you will become a victim of such car dealer scams as spot delivery scam or “yo-yo financing”.
In case you really find that you are a victim of dealer fraud, do not hesitate, call us at 818.990.0418 and get a free consultation from an experienced LA dealer fraud lawyer Hovanes Margarian.