The Consumer Protection advocates

Tag Archives: dealer

Mar
09

*Rolling back the odometer. *Not disclosing that the car is a “lemon buyback” that the original owner returned for a refund. *Not disclosing that the vehicle has a “salvage title.” *Not disclosing that the vehicle used to be a rental, a demonstrator or was previously sold and  returned. *Quoting a lower price than the one on the contract, or charging you for features you were told  were free. *Contracts that are incorrectly dated, forged or not provided to you. Victims of used car fraud should go to the dealer first to ask for a refund or exchange (or any service you’re entitled to under a contract or warranty). If …



Mar
05

When you decide to purchase a used vehicle from a California dealer, you will (or should) always see an “As-Is” sticker in the window. The dealer can possibly sell you the car As-Is, but you are still legally entitled to certain “minimum” standards of operation for the vehicle. The following is a list of what you can ask when purchasing the vehicle (or shortly after purchasing the vehicle), to ensure you’re getting what you’re legally entitled to. * Do all headlamps work (and high/low beams work)? * Do brake lights work (including the middle-3rd light)? * Do tail lights work? * Do side markers and turn signals work? * …



Mar
04

You may be required to do so. In many states, you (or your attorney) must contact the auto dealer and give them an opportunity to correct the problem to your satisfaction, before taking any legal action for possible auto dealer fraud. This contact should be in writing, and should clearly illustrate both the problem (i.e. the dealer’s failure to disclose certain financing charges), and what steps you would like the dealer to take to resolve the problem (i.e. a partial refund of the vehicle purchase price).



Sep
20

One of the auto industry’s dirty little tricks is the practice of lenders giving kickbacks to dealers for charging high interest rates for the car loans. A good example of this would be when a buyer has been qualified for an 8% loan rate, the dealer can, and will in most cases, attempt to charge a higher rate. Many dealers will tell you they have a 12% rate available (a lot of consumers do not know better) and will jump at the deal just to get credit and drive away in a new or used car. Your $20,000.00 automobile over a 60 month period would have had a $433.56 …



Aug
31

After receiving a lawsuit, the Dealer will often investigate what happened by talking to each of the people involved in the sale. These interviews can be video recorded, tape recorded, or other notes made. It is not unusual for the employees to be asked to write down everything they can recall about the deal, step by step, in as much detail as possible, in order to aid in the defense of the lawsuit. Sales persons, and F & I people, may actually keep a diary of their deals and potential customers, too.



Aug
28

At this point the sales person will return and escort the customer to their newly purchased car. With all the paperwork signed, the car Dealer doesn’t want the customer to linger (they might take the time to read what they just signed). This is the emotional “high” of the transaction for the customer. They think they have just “beat the house” on their hard-won deal and they are ready to strut out of the dealership and drive off into the sunset. The Dealer wants to encourage that. There is a psychological aspect to putting the car over the curb and the Dealer knows that if the customer figures out …



Aug
28

The sales person calls the attention to all the attributes of the new(er) car and all the negative aspects of the old(er) car while working the deal. All the usual factors are in play: mileage, age, options, equipment, plus the usual personal factors that are customer-specific. The idea is to get the customer so bind up in the idea of getting the new car, and how much it will improve their life, the envy of others, family harmony, their peer reputation, etc., that they lose track of the numbers in the deal. This is called putting the customer in the ether. The deeper the ether, the higher the gross …



Aug
26

When you have to land the customer on a car but  you don’t find out what they want, the customers will wander around the lot, poking their head into every car, test driving who knows what, until hours have gone by and nothing has been accomplished. The dealer wants to hold back all of that by asking the customer what kind of car they are interested in, sedan, mini van, sports car, pickup truck, or whatever. Next,figure out if the customer likes a particular make, Ford, Chevy, Chrysler, whatever. Find out what color the customer likes. Surprisingly, many customers buy by color and style first and the model second. …



Aug
25

Many customers have a trade in that they want the dealer to buy. It’s obvious that dealers buy at wholesale and sell at retail, but there are many things that the dealer can do to make the trade in look like it’s worth much less than it really is. First and foremost, a great number of people really don’t realize what their car is worth. People usually do the appraisal by someone other than the sales person who is working the deal. There are two benefits to the Dealer occur: Firstly, when the number comes back, the sales person can blame the low-balled number on someone else while he/she …


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