OFFICE ADDRESS
The Law Offices of Hovanes Margarian
13425 Ventura Blvd.
Suite 303
Sherman Oaks
CA 91423
818.990.0418
In order to avoid becoming a dealer fraud victim, one should have certain knowledge about the most common dealer scams. In this blog we will discuss the situations when a car dealership cancels the purchase contract and the options and rights you have in those cases. If the dealership cancels the contract within 10 days, you get your down payment or trade-in back. The purchase contract requires that the car dealer return to you everything given for the purchase. This includes your trade-in vehicle. If you gave a $2,000 down payment and a car as a trade-in, the car dealer must give you back both the $2,000 and the …
Categories: General Articles
Tags: dealer fraud victim, dealer scam, down payment, trade-in
Spot Delivery is a description which refers to the dealer placing a consumer in a car “on the spot”, to get the sale, only to “yo-yo” them back at a later date for additional funds. Spot Delivery scam happens to unsuspicious consumers throughout the United States. If you find yourself in this situation, the chances are good that you have legal remedies available to right this wrong. • Remember that if you have signed papers, you own the car, regardless of whether the vehicle has been financed. • Your credit was good otherwise the dealer would not have delivered the car to you at the price you agreed to …
Categories: General Articles
Tags: dealer fraud attorney, down payment, Spot Delivery scam
Rewritten Contract/Backdating A customer often won’t qualify for financing under the terms of the first purchase contract and may be required to increase a down payment, APR, etc. to qualify for a loan. Then the dealership has the customer sign a second contract with the new terms but backdates it with the date of the first contract, sticking the customer with financing charges for a period during which the contract wasn’t yet in effect. In addition to misrepresenting when the customer takes the obligation of the new contract, a backdated contract often violates the single document rule because another form, usually called “Acknowledgment of the Rewritten Contract,” has the …
In our previous blogs we have already presented some tricky questions that may lead to dealer fraud. Below are three more questions and the most preferable ways of answering them in order to avoid becoming a dealer fraud victim. 1. “What were you hoping to get for your trade?” This may be an honest question, but why tell the price first? If you say you want $10,000 and the car is really worth $12,000, you’ll give the dealer a $2,000 present. It’s essential to have a realistic idea of what your trade-in is worth and let the dealer throw out the first number. Don’t get confused in case he/she …
Categories: Helpful tips
Tags: dealer fraud victim, dealer tactic, down payment, monthly payment, trade-in
Many of you have probably received postcards in the mail or phone calls urging them to buy auto warranties, but many of these unscrupulous companies simply take money from consumers and leave them with little help when repairs are needed. Read our blog to avoid these car scams. 1. Step 1 Avoid companies with little history in the auto business. If the company goes out of business, you will have to pay for your own car repairs. 2. Step 2 Stay away from any dealership that claims that you must buy a warranty in order for your financing to be approved. This is a common car scam. 3. Step …
Categories: General Articles
Tags: Car scams, down payment, extended warranty
To secure yourself from car dealership tricks, you should learn dealer scams. In this blog we will discuss the situations when a car dealership financed contract may be cancelled. If you buy a car that is financed through the dealership, the dealer has a right to cancel the contract, but only if you are notified within 10 days of the date on the purchase contract. It is based on the language of the purchase contract. Look at your purchase contract. That’s the long yellow document containing “RETAIL INSTALLMENT SALES CONTRACT” note at the top. Turn to the back of the purchase contract, and find the box with the “Seller’s …
Categories: General Articles
Tags: Avoid Dealer Fraud, car dealership tricks, Dealer scams, down payment, trade-in
Spot Delivery usually occurs when a dealership allows a consumer to drive the vehicle home from the dealership even though the sale is not complete. If the customer decides to finance the vehicle at the dealership, the car dealer most often does not get a banks acceptance while the consumer is there at the dealership. Car dealer lets the buyer know that he/she can take the car home while the dealer’s finance department is arranging the financing. Spot delivery is not illegal in most states. Dealers are well aware of this and use the situation to implement various scams. One of these auto frauds happens when the dealer asks …
Categories: General Articles
Tags: .trade in vehicle, auto frauds, car scams, dealer fraud, dealer tactics, down payment, spot delivery, “yo-yo” scams
Buying a new or a used car is not always easy and fun, as you should always watch out for dealer scams. There are car dealers who work trying to get that deal from you no matter how much it costs. If you are not careful enough you will pay a lot of money and in the end get a piece of junk. You may end up buying a used vehicle which is worth its price because it was involved in an accident and the problems are masked so you the buyer are not aware of the problems. Very often car dealers push you into buying the car today. …
Categories: General Articles
Tags: auto dealer scams, Dealer scams, dealer trick, down payment, scam
During the car negotiations of the car deal customers get to know a number of terms, such as purchase price, options, down payment, trade-in credit, monthly payment, interest rate, loan term, and balloon payment. All these elements of a car deal lead to confusion or fraud. It is difficult for the customer to focus on all of the terms mentioned by the car dealer. If the customer focuses on one of the terms he will probably miss all the others and car dealers know this. Distraction is an art that many car salesmen study diligently. For example, many people have become a victim of dealer fraud by focusing on …
There are several important things you should do before you enter a dealership and start shopping for a new car. One of the most important things to do is determine your budget. Come up with a maximum monthly payment allowance, and a maximum down payment that you will not go over. When you know exactly how much you can afford to pay for a vehicle you will look only at vehicles that are in your budget. Think ahead! You may be financing for 3-4 years and you probably don’t want not be able to pay other bills because of your car payments. Also consider your trade-in. If you still …
