Dealership Scams

[Arthur76]

I wanted to know if anyone has ever heard of this: A dealer that you purchased a car from a year ago sends a promotion in the mail that invites you to come in and get a new car even though your car is not paid off. You go in and walk away with a new car and get to keep your old car. However, when my cousin told me about this situation, I told her it sounded like a scam. I asked her how was the dealer profiting by doing this. So I spoke to a friend that used to work as a salesman and he said that she will have 2 car payments and if she doesn't pay them both, she will have a repossesion on her credit. After telling her this, she took the car back and the dealer would not take it back.

 

Can soomeone please offer advice on giving the car back. Are there any sample letters that can be shared on who to file a complaint with. Please help!!!

[MarvBear]

I can't imagine anyone that purchased a second vehicle, without trading in the vehicle on which they were currently obligated, not expect to make the payments on both this new loan and the payments on the first vehicle they chose to keep.

 

Of course your friend will have 2 payments, she now has 2 loans, if I am reading your post correctly.

 

If she chooses not to pay for one of them, then it is very likely that the leinholder will pursue further action against your friend.

[hurricanesfans27]

I wanted to know if anyone has ever heard of this: A dealer that you purchased a car from a year ago sends a promotion in the mail that invites you to come in and get a new car even though your car is not paid off. You go in and walk away with a new car and get to keep your old car. However, when my cousin told me about this situation, I told her it sounded like a scam. I asked her how was the dealer profiting by doing this. So I spoke to a friend that used to work as a salesman and he said that she will have 2 car payments and if she doesn't pay them both, she will have a repossesion on her credit. After telling her this, she took the car back and the dealer would not take it back.

 

Can soomeone please offer advice on giving the car back. Are there any sample letters that can be shared on who to file a complaint with. Please help!!!

 

 

if she rolled off the curb burning gas shes an owner especially if the deal is bought. and no one can do a thing

[Inceptor]

Having just leased a new Volkswagen myself yesterday, I can tell you for a fact that if I didn't tell the dealership that I wanted to trade in my current car and I had a current loan on it, they would have had no second thoughts about simply allowing me to sign everything and drive away in the car.

 

Sounds like your "friend" received a standard advertisement that dealerships send to their mailing list of past clients. There has to be more to this story...what did she think, that they were giving her a free car?

Edited August 8, 2007 by Inceptor

[LH1128]

I guess I don't understand the OP...did she think they were giving her a FREE car?

[drained]

Ah yes, the old "come buy a car" scam....

Tell your friend that the dealer is going to KEEP sending her invitations to buy new cars...without trading in the old ones...

 

This scam has been going on for years. gotta watch your back.

[mk_378]

It's been even worse, people have been deceived into thinking they're trading in. This is all talk though, actually on paper their old car is not in the deal at all. The old car sits on the dealer's lot untouched until the hapless buyer starts getting calls from the old finance company.

 

As long as you qualify to have a second car loan, the dealer can just sell you another car outright and they don't care if your old car gets repo'd, actually they don't even care if the new car gets repo'd.

 

Seems very simple to avoid by paying attention to the paperwork.

[OvercomingObstacles]

i still dont understand how this is a scam.

[Sweet Carolina]

This isn't a scam. Period.

[LDB]

You go in and walk away with a new car and get to keep your old car. However, when my cousin told me about this situation, I told her it sounded like a scam.

 

It's not a scam. It's called buying a second car. What made your cousin think otherwise? Can you post the exact language the dealer used to lure her in? I'd love to see it.

[CreditMcNugget]

Maybe a troll?

[jazzyjewel]

I had a dealership actually suggest letting my "old" car get repo'ed and they'd give me and new one rather than take mine in as a trade . I was shocked . Never heard of such a thing , especially not from a dealer . I just didn't think that was right .

But everyone one is right its a second car loan .

[Arthur76]

Thanks for all of the responses. There's more to the story. The dealer said that they were trading the old car in and that Mitsubishi would come and pick up the car. She was told to park the car in front of the house. However, she did not notice on the paperwork any mention of a trade-in. So basically she went back and she's now getting the run around. The salesperson says its not a repossesion but the general mgr says it is.

[MarvBear]

What was said and what was written were apparently two different things.

 

Regardless of what was said by one of the salestaff, the documents actually signed with the Finance department would have been thorough.

 

I can't imagine someone NOT knowing they are not trading their currently obligated vehicle.

 

There would have been a noticeable lack of documentation regarding the currently obligated vehicle:

 

i.e. Odometer, POA, Secure POA, Tag Transfer, Payoff Verification, Pollution/Smog Certification etc................

 

But it is probably all the dealer's fault

[Arthur76]

Marv,

So is there anything that can be done? Or is the only option to find someone who can take over payments on one of the cars?

[MarvBear]

If it's an extremely recent transaction, your friend might ask to speak in person with the Dealer Principal. But even one's day's delay in that process would lessen the chances of an intervention.

 

Otherwise, your friend evidently has two automobile loans.

[LDB]

Call your state or county consumer protection office now. You should have at least 3 days to call off the deal. As OP tells it, this one stinks to high heaven.

[Inceptor]

Call your state or county consumer protection office now. You should have at least 3 days to call off the deal. As OP tells it, this one stinks to high heaven.

 

That differs from state to state. In California, there is NO cooling off period...you sign it, it's yours.

[stljohn]

Yeah missouri has a 3 day right of recission if you can show fraud.

 

This doesn't really sound like fraud as much as unscrupulous salesman taking advantage of less then sharp people.

 

I imagine this happens more then a lot of us know.

Edited August 9, 2007 by stljohn

[Inceptor]

I guess this would work for any finance company...stop making payments, park the car in front of your house and one day it'll magically disappear!

[LDB]

Well, OP isn't providing many details. If cousin is stuck with a second car she doesn't want, can't prove fraud and the dealer won't take it back then she should sell one of them to Carmax, eat the difference, and profit from the experience. A repo, voluntary or otherwise, is no good on a credit report.

[Arthur76]

What if she has the General Mgr on tape saying that it will be a repossession and the Sales associate on tape saying that it will not be a repossesion? We are just trying to exhaust all options.

[zx10 guy]

You need to check your local laws concerning audio recorded evidence. I know in Maryland it is illegal to record the audio with any party where you haven't notified them in advance that you are recording the conversation. This was brought to the national spot light when Linda Tripp recorded her conversations with Monica Lewinsky. The State's Attorney General's Office was contemplating bringing charges against Linda Tripp for illegally recording the conversations.

[hurricanesfans27]

Call your state or county consumer protection office now. You should have at least 3 days to call off the deal. As OP tells it, this one stinks to high heaven.

 

That differs from state to state. In California, there is NO cooling off period...you sign it, it's yours.

 

 

only on new cars. used cars there is a right of recission and they are the only state that has it.

[MarvBear]

Call your state or county consumer protection office now. You should have at least 3 days to call off the deal. As OP tells it, this one stinks to high heaven.

 

 

As far as I know, the ONLY State in the Union that offers a 3 day right of recisision, is the State of California. And that must be purchased as part of the overall transaction.