Car dealers are working hard right now putting out a false spin, claiming they do not even engage in lending, falsely asserting they just “facilitate” loans for car purchases.
Yeah, and in the process, dealers “facilitate” low and moderate income people out of billions in extra finance charges! The truth is that dealers make a huge percentage of their profits secretly from kickbacks on markups in vehicle financing. No wonder dealer advertising lures the public with promises of “easy financing”.
Many crooked dealers actually falsify a buyer’s credit– frequently without the buyer’s knowledge or consent. This was exactly the same problem that occurred with the mortgage meltdown.
An Iraq war veteran, Corporal Woods, purchased a vehicle from an auto dealer in the San Francisco area only to find that the car had been written off previous as the consequence of and accident. This is not a-typical. In general, veterans find themselves prayed on by unscrupulous sales people and lenders.
Watch this CBS news video for Corporal Wood’s story: http://firstname.lastname@example.org
Unfortunately, it seems that there is an inordinate number of unscrupulous people engaged in the car sales business. We’ve all heard the jokes about the ‘used car salesman’. A comparison was made a few years ago that the difference between a used car salesman and a computer salesman is that the used car salesman at least knows when he (or she) is lying.
Problematically, this unscrupulous, and often illegal, behavior is not limited just to the representations made about a vehicle. Often times it will extend to the virtual ‘kidnapping’ of the unsuspecting shopper by the dealership and gross misrepresentation regarding actual costs and financing.
Frequently, people that have been unfairly manipulated into purchasing vehicles later find themselves unable to make the payments which then cascades into debt collector persecution, repossession, destruction of credit rating and subsequently a host of other credit related problems. To say nothing of stress and not being able to get to work.
Aurora Harris, proprietor of The Honest Lawyer, and herself a nationally renowned consumer attorney who has often broken new ground in defending consumers from predatory lending and sales practices, has written an article that is posted on her personal web site. You can read the full article here: http://www.theharrislawfirmonline.com/2009/12/avoiding-auto-dealer-fraud/