Law and Rights
In a recent court case, Ford was required to back back a lemon car and to pay back to the consumer the amount that the selling dealer increased the actual purchase price in order to pay off the consumer's trade in. That's a first.
Called "negative equity" by car dealers, it can mean that your trade in vehicle isn't worth what you owe on it. Some dealers hide the numbers by jacking up the sale price without really telling the consumer what is happening. Other dealers aren't telling the truth about the trade in value in the first place. Either way, it can cost you money.
Now, the courts are recognizing that when that shiney new car turns out to be a lemon, then the manufacturer shouldn't be allowed to rip you off again by deducting the so-called "negative equity" amount from the money they have to refund. That's only fair. After all, if they had built it right in the first place, you wouldn't be in that spot.
That's good news for consumers, certainly, but the problem goes deeper than that. Before you go to the dealer's lot, check online to find out what your trade in is really worth. Then, argue for the highest dollar when you are negotiating on the dealer's lot.
And don't let them hide the number with some excuse like "oh, don't worry, we'll pay it off for you." Know the numbers; that's the one thing car dealer's don't want you to know and there's a reason. The less you know, the more they make off you.
It's your money, so don't waste it.
You read more car dealer terms and what they mean by clicking here to read our Car Dealer Dictionary.
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- Don't Let Your Car Dealer Steal Your Car. There's A Shortage Of Good Used Cars And Dealers Are Promising The Moon To Get Your's, But Is It Real?
The used car market is constantly changing. But the one constant is that more used cars are sold retail, every year, than new cars. In fact, usually there are at least 3 used cars sold for every new car sold - and that's in a normal year. With credit...
- The Cash For Clunkers Car Dealer Rip Off
Some car dealers are having consumers sign "waiver" forms that say if their trade in doesn't get "approved" for the Cash for Clunkers program, then the consumer will pay the dealer the difference. Well, now the government is telling consumers not...
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In a recent article, Forbes website ran an article called "10 Ways to Outwit a Car Dealer" and quoted Lemon Law attorney Ron Burdge discussing the secret ways car dealers make money off customers, including "Dealer Reserve." That's a practice many...
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Law and Rights
Burdge Wins; Ford Loses
In a recent court case, Ford was required to back back a lemon car and to pay back to the consumer the amount that the selling dealer increased the actual purchase price in order to pay off the consumer's trade in. That's a first.
Called "negative equity" by car dealers, it can mean that your trade in vehicle isn't worth what you owe on it. Some dealers hide the numbers by jacking up the sale price without really telling the consumer what is happening. Other dealers aren't telling the truth about the trade in value in the first place. Either way, it can cost you money.
Now, the courts are recognizing that when that shiney new car turns out to be a lemon, then the manufacturer shouldn't be allowed to rip you off again by deducting the so-called "negative equity" amount from the money they have to refund. That's only fair. After all, if they had built it right in the first place, you wouldn't be in that spot.
That's good news for consumers, certainly, but the problem goes deeper than that. Before you go to the dealer's lot, check online to find out what your trade in is really worth. Then, argue for the highest dollar when you are negotiating on the dealer's lot.
And don't let them hide the number with some excuse like "oh, don't worry, we'll pay it off for you." Know the numbers; that's the one thing car dealer's don't want you to know and there's a reason. The less you know, the more they make off you.
It's your money, so don't waste it.
You read more car dealer terms and what they mean by clicking here to read our Car Dealer Dictionary.
Burdge Law Office
www.BurdgeLaw.com
Helping Consumers Since 1978
www.BurdgeLaw.com
Helping Consumers Since 1978
Subscribe in a reader- Don't Let Your Car Dealer Steal Your Car. There's A Shortage Of Good Used Cars And Dealers Are Promising The Moon To Get Your's, But Is It Real?
The used car market is constantly changing. But the one constant is that more used cars are sold retail, every year, than new cars. In fact, usually there are at least 3 used cars sold for every new car sold - and that's in a normal year. With credit...
- The Cash For Clunkers Car Dealer Rip Off
Some car dealers are having consumers sign "waiver" forms that say if their trade in doesn't get "approved" for the Cash for Clunkers program, then the consumer will pay the dealer the difference. Well, now the government is telling consumers not...
- Forbes Quotes Burdge
In a recent article, Forbes website ran an article called "10 Ways to Outwit a Car Dealer" and quoted Lemon Law attorney Ron Burdge discussing the secret ways car dealers make money off customers, including "Dealer Reserve." That's a practice many...
- Car Sales Fraud Rising
New car sales are slowing down and that can mean an increase in fraudulent practices in the used car department, just to keep the money flowing. For the first time ever, the US automakers are predicted to drop to less than a 50% share of the market in...
- 11 Steps Dealers Use To Rip You Off, Steps 1-4
A motor vehicle salesperson recently explained to me that there are 11 steps that dealers use to get the most money out of you that they can get in a deal. I call it 11 Steps Dealers Use to Rip You Off. Here are Steps 1 thru 4, along with some comments...