The Consumer Protection advocates

Tag Archives: hold check agreement

Aug
14

Sometimes car dealerships allow the customers who are unable to pay the entire down payment at the time the final purchase contract is signed to make a down payment in payments called deferred down payment. It is not illegal under the vehicle code. However, these payments must be itemized in the purchase contract and should include the amounts and due dates for the deferred payments. Often dealerships will make customers write checks for the deferred down payment and then agree not to deposit the checks until an agreed upon date. The dealer asks the customer to sign a separate agreement that states the dates on which the checks will be cashed …



Aug
13

According to the requirements of the Automobile Sales Finance Act (AFSA) all obligations of both parties in a transaction must be contained according to the single document rule. This, basically explains the reason why purchase agreements are so long in the auto industry. However, sometimes dealerships use fraudulent practices and ask customers to sign additional documents, including trade-in forms stating that the customer agrees to pay any difference between the value of their trade-in vehicle and the amount owed on that vehicle. The other trick is when the dealership agrees to make payments on a trade-in vehicle but does not include the trade-in vehicle in the purchase agreement. The “hold …