An article in today's New York Times discusses the increase in subprime mortgage lending. As the article points out, although most of the really bad mortgages that caused the financial crisis were subprime loans, not all subprime loans are bad. People with less than...
Month: June 2014
Marking Up The Interest Rate
Car dealers like to brag about their relationships with multiple banks and finance companies, and they often imply that these connections help consumers get low interest rates. But, many consumers would be surprised to learn that car dealers frequently mark-up the...
Dan Blinn on Law Talk
Managing Attorney Dan Blinn will be the in-studio guest on WTIC 1080 Law Talk on Saturday, June 28 at 3:00 pm. He'll be talking about how to avoid getting ripped off at the car dealership. Feel free to call in and ask any consumer law related questions.
Buying Former Rental Cars: Good Deal or Big Headache?
Car rental companies owned nearly 2 million in 2013, and most of those rentals will be resold on the consumer market. Some rental companies have retail divisions that sell former rentals directly to consumers. Many of those cars can be a good deal, and many rental...
Games Dealers Play: Dealer Conveyance Fees
One of the biggest tricks in the car business is the "dealer conveyance fee," which is supposed to compensate the dealership for its costs in processing the paperwork, taking care of the registration, and closing the deal. About 20 years ago, dealer conveyance fees...
CashCall and Western Sky borrowers may be entitled to a refund!
Important news for Connecticut residents who have taken out a payday loan: the Connecticut Department of Banking recently reached a settlement with CashCall, Inc. and Western Sky Financial, LLC concerning unlawful lending practices. Customers that took out a payday...
Games Dealers Play: VIN Etching
One trick played by auto dealers to boost their profits is to charge customers to etch the vehicle identification number (VIN) onto the windows of a car. The VIN is a 17 digit number that is unique to a specific motor vehicle. There is some evidence that car thieves...
Games Dealers Play: Not Paying Off the Trade-In
Many consumers decide to trade-in their cars before they have paid off the old loan. When things go right, the dealership will obtain a pay-off amount from the bank or finance company and will make the payment on time and for the proper amount. The dealer gets the...
I Bought a Certified Pre-Owned Car – and it was WRECKED!
Most car manufacturers have certified pre-owned ("CPO") programs. Typically, CPO programs involve an inspection by an authorized dealership, who "certifies" that the car meets the manufacturer's high standards. For example, Toyota advertises that it has a "160-Point...
Does the dealer have to tell you if your car was in a flood?
When you go to buy a car, you want to learn as much as you can about that car's history. You want to know if it was ever in any accidents or if there was any other type of damage. You need to know what repairs were made, especially if they were expensive. But what if...
Why might a dealership hide the history of your used car?
Buying a used car is unquestionably a more affordable choice than buying a brand new vehicle. If you find a used vehicle in good condition, it could serve as your primary form of transportation for many years. Unfortunately, not every used vehicle is in great...
Connecticut ranks high for auto fraud in the U.S.
Did you know Connecticut ranks among the top states with auto fraud based upon data provided by the Federal Trade Commission? Unfortunately, in 2020, 120,000 cases of auto fraud took place in the United States. In Connecticut, 318.9 incidents were reported per million...
Can a dealership hide that a used car has a salvage title?
Buying a used car is a major investment. You will likely depend on that vehicle to get to work or to safely transport your children to and from school. You should know the condition of the vehicle based on your test drive and the disclosures made by the salesperson...
Bent and damaged frames on cars: What to know
Of all the problems that you can find with a vehicle, a bent frame is among the worse. Structural damage to the chassis will cause you major problems. Unfortunately for consumers, there are plenty of unscrupulous car dealers out there who will cheerfully sell you a...
What to do if your car is a lemon
The last thing you want after purchasing a new vehicle is to start experiencing mechanical problems. It can be challenging, especially if you put everything into buying what you thought would be a reliable vehicle to meet your daily transport needs. Fortunately, there...
Some used car salesmen deserve their reputation
It’s fair to say that used car salesmen have a negative reputation. The cliche is that they’re out to trick consumers and sell them useless products at inflated prices. This is certainly not true for every salesman, and there’s a reason people say to be wary about...
Is an extended vehicle warranty worth the cost?
If the manufacturer warranty that came with your car is expiring soon, you may actually start to listen to those extended warranty robocall messages on your phone. But is an extended warranty – also known as a vehicle service contract – worth the money? Surveys of...
Can you return a used car to the dealership?
When you buy a vehicle, it’s with the expectation that it has been represented correctly by the dealership. In fact, you go to a dealership to avoid questions about the vehicle, because many dealerships do their due diligence and make sure they are aware of all...
Price gouging is more than irritating, it is illegal
It’s a hard time to buy a vehicle. Due to supply shortages, there are fewer new and used cars at today’s dealerships, and that means prices have skyrocketed. As Business Insider notes, a lack of computer chips, rampant supply chain problems and high demand have all...