Tag Archives: .trade in vehicle

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 …

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There are several things you should know and consider before you decide to trade in your car. Learn the most common scams and dealer tricks the car dealers may try to use when you trade in your car. Generally, used car dealers make 2 to 3 times more in profit from the sale of used car trade ins than they do from selling new cars. When you trade in your car the dealer offers you much less than what your old car is worth, because he knows that most consumers have no idea what is the value of their car. In case the car dealer pays what your used …

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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 …

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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 …

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Remember that you may be able to get a much higher price by selling your current vehicle yourself rather than trade-in. Most often when you trade in your old vehicle at a dealership you get below wholesale Blue Book for your old car. Which is even worse the car dealer could confuse you about exactly what you are getting. For example, you may bargain with a dealer to get a higher price for your trade-in vehicle, but not realize that the purchase price of the new vehicle is also being raised.

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1. If you consider buying a new car the best time to do it is around Christmas time because with not many of people are looking to buy a new car, and it forces dealerships to up their sales strategies. It’s easier to get a good deal when car sales are down and dealers want to make profit. 2. Never bring your old car to the dealership as a trade-in. The dealership often fails to make payments for the loan of your trade-in vehicle on time. You may become a victim of dealer fraud and be responsible for a great deal of late fees to the bank. If you …

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If you are thinking about buying a new car and are confused about the terms and are concerned about being switched into a vehicle lease, use the following tips: 1. Remember that when you lease a car, you are actually borrowing it and not buying. The lease may seem to be less expensive at the first sight but there are often many hidden fees which make the lease more expensive. There are hidden fees for excess mileage and wear and tear to the vehicle. Also if you lease a vehicle that has a lease allowance of 25,000 miles a year and at the end of the year you have …

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Dealer Trade payoff scam usually happens during ads for big sales, when many car dealerships promise that they will pay off your trade no matter how much you owe. However, the truth is it’s one of the opportunities for car dealers to trick you into financing more through them. What the dealer does is paying off the amount you own for your trade-in and then they add this amount to your new loan. On the other side the car dealership takes your trade-in vehicle and you may have little or no idea what they actually gave you for it. It is much easier for the dealer to scam you …

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Like most of the common dealer tricks this scam also works on misdirection. This dealer fraud occurs when the car dealer gives you what you want on one end of your deal while taking it out of you on the other. For example, the dealer gives you a break on the purchase price of your new car but then give you less for your trade-in vehicle. Or they give you a great deal on your used car and new car but the terms of your financing are not the best. If you want to get a good deal on your new car you have to understand all three points …

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Often a customer will not qualify for financing upon the terms on the first contract. The customer may be required to increase a down payment, higher APR, etc. in order to qualify for a loan. The dealership has the customer come to sign a second contract with the different terms but backdates the second contract with the date of the first contract. This affects the finance disclosure laws in that the customer is being charged interest for a time period in which the contract is not yet in effect, etc. In addition to making a material misrepresentation regarding when the customer takes the obligation of the new contract, a …

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