A person
chooses a used car mainly with the intention of saving on the hard earned
money.
More
often than not, thanks to the fraudulent used car sellers/dealers we seem to be
shedding more dollars than the worth of a used car. One can always
keep a check on the tricks of the used car dealers to get a square deal. Here I
would like to caution you on the most common recipes the used car dealers
employ to spruce up their income.
The
used car dealer gives the trade-in less than its value
In a
transaction that includes a trade-in vehicle more is owed on the trade-in
vehicle than the actual cash value of the vehicle. But a customer is led to
believe that the dealer is valuing the trade-in vehicle at the same amount as
what is owed on the new used car.
The
actual cash value the dealer offers for the trade-in is less than the amount
owed on the new used car the buyer is interested in. The difference is added to
the cash price of the new vehicle.
It is the
unchecked illegal practices story spun around with the purpose of
- Inflating the cash price of the
used car
- Cheating customer into paying
more in sales tax and registration
- Hoodwinking the laws against selling a vehicle for
the advertised price
Cheat
sheet of the Inflated EMI’s
In this
case, the customer is quoted an exorbitant monthly payment. Once the customer
accepts the monthly scheme, the dealer adds the cost of the accessories like
alarms, service contracts, GAP insurance, paint/fabric protection, window
etching and low jack. in order to cook an inflated monthly installment amount.
The customer does not realize that the accessories are optional and that they
are paying extra for the accessories. They are even led to believe that the
accessories are included with vehicle.
Acknowledgment
of Rewritten Contract
If a customer
does not qualify for financing on the terms of one contract he/she may have to
increase the amount on a down payment,
annual percentage rate of interest , etc. in order to qualify for a loan
in which case the customer signs a second contract with the different terms
with the date of the first contract. This in essence means that the customer is being charged interest for a
time period in which the contract is not yet in effect. This backdated contract
tantamounts to a material misrepresentation regarding the obligation of the new
contract and violates the single document rule.
Acknowledgment
of Rewritten Contract has the actual date when the contract was signed.
Should a
customer be asked to sign a second contract, he/she can
- Cancel the contract
- Return the new vehicle
- Take back the down payment
- Trade in vehicle refunded
Remember
that the dealer of the used car only has 10 days to tell you they want to make
changes to the contract or the dealer of the used car can cancel the contract. After the 10 days, the dealership cannot
change the deal.
Why is
the purchase agreement so long in the used car industry?
Law provides
that both party agreements should be within the same in the same document. This
explains why the purchase agreements are so long in the used car industry.
Often, used
car dealers have customers sign other documents, such as
- A Trade in forms for the
difference between the trade in value and pay off of a trade in vehicle agreement
plus any associated attorney fees.
- Payments on a trade-in
vehicle that does not include the trade-in vehicle in the main purchase
agreement
- A ‘hold check agreement’ in
which the customer agrees to pay additional money towards the down payment
on a later date
These
documents violate the one document rule.
Hold
check agreement Scam
Many
customers are unable to pay the entire down payment at the time the purchase
contract is signed. Dealers allow customers to make down payments as deferred
down payments and should be itemized with its due dates. The used car dealers default on this code and
have the customers write checks for the same deposit
them only on the agreed upon date.
Besides,
the customers are made to sign
- A hold check agreements that
states what date the checks will be cashed
- Additional provisions regarding
any returned checks
- Obligations that are not included
in the single purchase agreement
Dealers
cannot sell a used car for more than the advertised price
Law
states that a used car dealer cannot sell a used car for more than the
advertised price or the window stickers and media ads.
The
amount of taxes, license, registration fees and the financier’s charges proportionately
increase should the used car dealer inflate the cash price of the used car higher
than the advertised price.
Ask
for a translation of the contract into your mother tongue
Civil
Code §1632 states that if a purchase deal is negotiated in the mother tongue of
the buyer, a translation of the contract must be provided to the customer in
the same language before signing the English language contract. A customer has the
right to cancel the contract if this is not complied with.
Dealers
of the used cars should disclose facts about a used vehicle
Dealers are
required to disclose facts about a used vehicle regarding its
- Previous accidents that affect its safe usability and market
value
- Its occupational history
- Lemon law
buy back by the manufacturer/dealer
- Odometer tampering
- Vehicle's history of the
accidents accident/a trade vehicle/rental
Which
used car is New and which used car is Used?
Law
requires that a dealership to specify the following cars as ‘used’.
- A demo/demonstrator vehicle
- Vehicles sold but returned due to the nonpayment of the
EMI’s
The used car dealers describe these cars as
New.
A used
car that passes certain standards alone
should be labeled "Certified Used"
Generally,
a used car that passes certain standards is labeled "certified used’ and is
supposed to guarantee to the customer that the used vehicle is in good working
order and free from major structural damage. However, many a used car that does
not qualify as "certified" under the standards advertised are being listed
‘certified’ this is the worst fraud a
used car dealer is capable of.
If you
suspect that you have been the victim of used car fraud visit www.yourlemonlawrights.com
for more information on the fraud claims such as odometer rollbacks, auto
dealer financing scams and vehicle history misrepresentations.
If you or
any of your loved ones are hurt because of the fraud used car dealers visit www.yourlemonlawrights.com for the redressal. Fill in the form for a free
evaluation of your case. Attorneys at the www.yourlemonlawrights.com might get you a refund
on the vehicle and may even let you retain the used car.
http://www.yourlemonlawrights.com/
