“But odds are good that in the paperwork you signed when you bought your own car, there was some legal language saying the sale may not really be final. It often asserts that if the car dealer has trouble with the financing on its end after the sale, it can later cancel the deal, try to get you to agree to different terms, and take the car back if you refuse”.
Car dealerships dirty trick - 'yo-yo' sales
- Thread starter hpman66
- Start date
“But odds are good that in the paperwork you signed when you bought your own car, there was some legal language saying the sale may not really be final. It often asserts that if the car dealer has trouble with the financing on its end after the sale, it can later cancel the deal, try to get you to agree to different terms, and take the car back if you refuse”.
Which is one reason I paid cash.
Sorry, unless the buyers were trying to defraud the dealers, the buyers shouldn't get treated in such a way. If the dealer can't get the financing approved for the buyer, they have no business releasing the car to the buyer. The buyer should just have to wait until there is an all clear on the loan.
CHEVYINLINE6
Blackhawk
If you wanna read a good story about used car lots, read the book The Grapes of Wrath by John Steinbeck. Read the part the about used car lot tricks. That part was not in the movie.
INLINECHEVY6.
INLINECHEVY6.
buckeyeshooter
Blackhawk
I have paid cash for my last 2. Before that, I went to my bank and arranged financing before I went to a dealership. That way I did not have to play games.
We have always financed through our local credit union. Get a final figure from the dealer and go from there with the CU. Always a better interest rate than a dealer also. When we drive away the dealer only has the warranty to worry about; the CU now owns the car.
GasGuzzler
Hawkeye
Buyer's fault for not having the credit to buy a car. Dealer has to "take it back" if the loan doesn't go through. They could keep if from leaving until credit is established but what is the real difference?
black1970
Blackhawk
If one puts on 3 pairs of boots, 2 pairs of pants, 2 sweatshirts, and 3 pairs of underware you still won’t be protected from a car dealer when you walk on the lot. Most have to lie about what they had for breakfast to stay in business. Ever notice the smaller used car lots only stay in one place for an average of 6 months or so. And if you think you can outdo a car dealer you are sadly mistaken. They have more scams than Carter has pills.
trebor44
Blackhawk
- Joined
- Dec 18, 2012
- Messages
- 912
- City & State/Province
- Idaho, East of Boisemento, or is it Boisangelos
There are many "tricks" that "car dealers" like to utilize. Even when you use cash, have a pre-approved loan etc., they (the salesperson) have multiple "closes" and you have to be diligent! Never, assume they are going to do "right" by you. You are their wallet filler!
You are often taking another risk when buying a car from a dealer. Very few dealers have the titles to the cars they "sell". The titles are held by the creditor who finances their floor plan. That's why you get a temporary tag- enabling you to drive the car you bought until you obtain a title and can get a license plate in your name. During that time, the dealer needs to pay their creditor to obtain the title and get one issued in your name. That all works if the dealer pays for the car. Sometimes they don't have the money (they used your money for something else) and you don't get a title within the time window of the temporary tag even though you paid for the car. Enjoy your next dealer purchase...
I saw this article in the news also. I really have a hard time seeing how this is legal.
And does it really happen? Well I mean I’m sure it does. I would like to see a profile of the buyers it happens too. I bet they have a lower credit score, and probably not a whole lot of money. This doesn’t leave them with many options for financing a car. And I bet the dealers know this.
It’s probably mostly used car dealers also. I can’t see how a large company like Toyota for example would be involved in something like this which just sounds like a big scam.
And does it really happen? Well I mean I’m sure it does. I would like to see a profile of the buyers it happens too. I bet they have a lower credit score, and probably not a whole lot of money. This doesn’t leave them with many options for financing a car. And I bet the dealers know this.
It’s probably mostly used car dealers also. I can’t see how a large company like Toyota for example would be involved in something like this which just sounds like a big scam.
ronto
Hunter
I always paid cash for every vehicle since my '53 Chevy in 1961.:)
harley08
Blackhawk
We all do not have cash to buy a Car!
Can you give me enough cash so I can buy a new Car?
purebred
Bearcat
So true, kinda sounds like the American voter.
The last two cars I have bought were new cars, and partially financed through the dealer. I did it because the rates offered me were far better than any bank or credit union could offer. One was for 0.9% for 3 years, and one was for 0.0% for two years. I was approved for the financing before I turned over my trade in (only on one of those purchases) and before I picked up the new car. I cannot imagine even wanting to drive off the lot without knowing that the financing was a done deal.
I did once have a deal almost fall through, years ago, after they suddenly balked at the last minute to honor the trade-in amount that they had offered for my current car. On the day I arrived to turn in that car, and pick up the new one, they said the condition of the car had changed (it had not) and they lowered their offer by $500. I said "forget it" and started to leave and suddenly the sales manager ran out and said "ok, ok, we'll go with the original offer".
I did once have a deal almost fall through, years ago, after they suddenly balked at the last minute to honor the trade-in amount that they had offered for my current car. On the day I arrived to turn in that car, and pick up the new one, they said the condition of the car had changed (it had not) and they lowered their offer by $500. I said "forget it" and started to leave and suddenly the sales manager ran out and said "ok, ok, we'll go with the original offer".
We have bought cars with cash before also. But sometimes it isn’t the best way to manage money…for us…everyone is different.
For example if a dealer has 0% financing or even 1% or 2%, our money is making more being invested.
But everyone is different. And a lot depends upon the price of the car being bought. I just read new car sales are averaging $47,000 these days.
There are so many ways to play the car pricing buying game that you really should take the time to work out the options.
Locally with some dealerships you can actually negotiate a slightly better ( maybe 1-2 percent ) if you let them finance it vs.
paying cash. Other times manufactures run low interest or cash off options, Last thing we bought we took the manufactures cash
off option, let the dealer finance it at 2% for two years and left money in CDs paying at the time 4%...lots of choices.
Locally with some dealerships you can actually negotiate a slightly better ( maybe 1-2 percent ) if you let them finance it vs.
paying cash. Other times manufactures run low interest or cash off options, Last thing we bought we took the manufactures cash
off option, let the dealer finance it at 2% for two years and left money in CDs paying at the time 4%...lots of choices.
A crooked car dealer?? Naw....say it isn't so!
BearBiologist
Hunter
- Joined
- Dec 4, 2021
- Messages
- 2,984
Happened with us on a used Pathfinder. Fortunately, we had a friend who was a deputy DA in the fraud division. He couldn't do anything but made a note in his case file. BTW: When I pointed out that the contract had a typo and said 0.09 cents per day and not 9 cents per day, he about had a stroke. I explained that if we kept the car we would owe ~$33 at the end of a year. They weren't going to release the keys for our trade in back to us (hard-pressure sales) until my wife excused herself to the restroom and came back crying. After we left, she told me that she had remembered an old Army trick that I had told her: putting soap in your eyes to redden them!
When we retired, I took money from my 401(k) and paid cash for a 2019 SR5 4Runner and a 2014 RAV4, both with very low mileage!
When we retired, I took money from my 401(k) and paid cash for a 2019 SR5 4Runner and a 2014 RAV4, both with very low mileage!
crstrode
Blackhawk
Most people that cannot manage to save their money, or spend less than they earn, are not going to get much benefit from reading a car loan contact.
They mostly don’t care anyway …. Mainly concerned about how much their payment will be.
That’s not society’s problem. Well, unless they’re a liberal and then somebody should be there to hold their hand and protect them.
That’s not society’s problem. Well, unless they’re a liberal and then somebody should be there to hold their hand and protect them.
ronto
Hunter
I would definitely have to finance at today's prices.:(
My brother bought a 92 blazer from a new dealer and traded in his old car . About four days later dealer called and said there was a problem with the loan figures and he needed to come sign new paperwork . He replied no thanks I will come get my old car. They had already got rid of his trade in so they exchanged lawyers information , and as far as I know nothing else ever happened
The A Team
Bearcat
Conveniently the fastest way to rebuild your credit score is to buy a new car. The dealership will fight to get you financed because they will eat the loss if the sale falls through. (Then the vehicle taken back is a used car worth $5-10-20,000 less than the new price).
A lot of car dealers offer several finance options to be able to sell to people who may not have the best credit and sometimes that falls into the creative financing zone. That can get it kicked back to the dealer and they have to kick it back to the customer.
As always,honesty is the best policy but sales people and F&I managers are pressured to make the sale no mater what.
As always,honesty is the best policy but sales people and F&I managers are pressured to make the sale no mater what.
Letting the dealer arrange financing for you is the worst possible & most costly move you can make when buying a vehicle.
Arrange your own finances, make the best deal you can on a buy or a trade, & write them a check....... then,,, exit the dealership as quickly as you can. Do not stop at the extended warranty or accessories window.
Unbelievable the number of otherwise intelligent folks that let financial predators handle major purchases like this.
Arrange your own finances, make the best deal you can on a buy or a trade, & write them a check....... then,,, exit the dealership as quickly as you can. Do not stop at the extended warranty or accessories window.
Unbelievable the number of otherwise intelligent folks that let financial predators handle major purchases like this.
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