Law and Rights
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 US new car and truck sales by the end of the year. On top of that, sales figures are dropping for virtually all makes but particularly for the Big Three. That's why the rebate and incentive game is back big time at your local dealer. It's also why you need to be more careful now than ever.
The newest ripoff is the tire care package that some dealers are packing into your monthly payment, sometimes without the buyer even knowing it. The tire care package is really not much more than just a scam for paying your dealer now for tires that you might (or might not) need in the future. Frankly, you're better off keeping that money in your own bank account!
We're getting more complaints about negative equity scams too. That's where the dealer says your trade in vehicle is not worth what you owe on it "but don't worry, we'll pay off your trade in anyway" they say. What they don't tell you is that they are jacking up the price of the car they're selling you too. Effectively, you are just transferring some of your old loan over onto the newer vehicle. Deeper in debt and away you go! Read more about it and how to avoid it by clicking here.
Another common ripoff is the Gap Insurance Game. That's where the dealer sells you a high priced guarantee that if your car is stolen or wrecked and your own insurance won't pay it off, then they'll put money toward the payoff too. Some people praise it, but some people say it's just another way car dealers try to take your money. After all, if that car was worth what they sold it to you for, then how come your own insurance company doesn't think so?
Historically, what we've seen is that car dealers are out to get your money one way or the other. If the service department is making money for repairs, then the sales department doesn't feel as much pressure to pull a fast one on customers. And if the sales department is selling lots of iron, then the service department might not tell you that you need that brake job sooner rather than later.
When the money stream goes down in both departments, look out. That's when car dealers are at their worst.
Don't waste your money. Be smart and be careful. And if you get ripped off anyway, then email or call us. Sueing dishonest car dealers is what we do for consumers every day.
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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...
- How Car Dealers Make Their Money Might Surprise You - The Profit Mostly Comes From Everything Else
Once upon a time there was a mega-dealer in Columbus that sold more cars and made more money than anyone in the county. Then it was the region. Then it was Ohio. Where are they now and who?s #1? Well, apparently it isn?t the guy with the guitar anymore....
- Negative Equity Gets More Negative
It's everywhere. Reports of a rising recession, layoffs, abandoned factories, bankruptcy threats and more. And now, some hungry car dealers are starting to show it in the paperwork we are seeing. There's more (and higher) negative equity numbers...
- 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...
- 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...
Law and Rights
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 US new car and truck sales by the end of the year. On top of that, sales figures are dropping for virtually all makes but particularly for the Big Three. That's why the rebate and incentive game is back big time at your local dealer. It's also why you need to be more careful now than ever.
The newest ripoff is the tire care package that some dealers are packing into your monthly payment, sometimes without the buyer even knowing it. The tire care package is really not much more than just a scam for paying your dealer now for tires that you might (or might not) need in the future. Frankly, you're better off keeping that money in your own bank account!
We're getting more complaints about negative equity scams too. That's where the dealer says your trade in vehicle is not worth what you owe on it "but don't worry, we'll pay off your trade in anyway" they say. What they don't tell you is that they are jacking up the price of the car they're selling you too. Effectively, you are just transferring some of your old loan over onto the newer vehicle. Deeper in debt and away you go! Read more about it and how to avoid it by clicking here.
Another common ripoff is the Gap Insurance Game. That's where the dealer sells you a high priced guarantee that if your car is stolen or wrecked and your own insurance won't pay it off, then they'll put money toward the payoff too. Some people praise it, but some people say it's just another way car dealers try to take your money. After all, if that car was worth what they sold it to you for, then how come your own insurance company doesn't think so?
Historically, what we've seen is that car dealers are out to get your money one way or the other. If the service department is making money for repairs, then the sales department doesn't feel as much pressure to pull a fast one on customers. And if the sales department is selling lots of iron, then the service department might not tell you that you need that brake job sooner rather than later.
When the money stream goes down in both departments, look out. That's when car dealers are at their worst.
Don't waste your money. Be smart and be careful. And if you get ripped off anyway, then email or call us. Sueing dishonest car dealers is what we do for consumers every day.
Burdge Law Office
www.UsLemonLawyers.com
Helping Consumers Protect Themselves Since 1978
www.UsLemonLawyers.com
Helping Consumers Protect Themselves 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...
- How Car Dealers Make Their Money Might Surprise You - The Profit Mostly Comes From Everything Else
Once upon a time there was a mega-dealer in Columbus that sold more cars and made more money than anyone in the county. Then it was the region. Then it was Ohio. Where are they now and who?s #1? Well, apparently it isn?t the guy with the guitar anymore....
- Negative Equity Gets More Negative
It's everywhere. Reports of a rising recession, layoffs, abandoned factories, bankruptcy threats and more. And now, some hungry car dealers are starting to show it in the paperwork we are seeing. There's more (and higher) negative equity numbers...
- 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...
- 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...