When shopping for cars, consumers typically fill out a credit application at the dealership. The dealership may then submit the application to multiple banks and finance companies. This is known as "shotgunning". When a prospective creditor pulls your credit report,...
Month: March 2015
The Yo-Yo Scam: The Car Dealer Takes Back the Car
In the typical Yo-Yo Scam, a car dealership tells the consumer that she is "all set" and that her credit application has been approved. She drives home in her new (or pre-owned) car and shows it off her to her friends, family, and co-workers. About a week later, the...
Are Certified Pre-Owned Cars Worth the Extra Money?
Are Certified Pre-Owned ("CPO") cars worth the extra money? A recent article by Tribune Newspapers discusses the increased cost of CPO vehicles, which consumers bought at record levels in 2014. Certified pre-owned cars are supposedly subjected to an extensive...
Do You Really Need a New Car?
A recent Consumer Reports article asks the question that every new car buyer should ask before going to the car dealership: Do You Really Need a New Car?: New-car envy. It can creep up anytime. It may snag you at a stoplight when a muscle car or luxury sedan sidles...
Games Dealers Play: Powerbooking
Powerbooking is one of the most common types of credit application fraud that car dealers commit. A car dealership powerbooks when it tells a bank or finance company that a car or truck is loaded even though it does not have many of the options that are described. For...
When Car Dealers Commit Forgery
Do car dealer employees commit forgery? "It is like smoking a cigarette," said one employee of a major Connecticut car dealership. This individual, a salesman who was upset with his employer, had agreed to talk with me about dealership practices. He confirmed what we...
If Buying a Used Car, Don’t Skimp on the Inspection
The most important thing that a consumer should do before buying a used car is have an independent mechanic inspect the car or truck. A qualified inspector can help car buyers avoid vehicles with serious defects or other problems. Additionally, any minor problems...
Games Dealers Play: Trade-In Games
The advertisements seem too good to be true: the car dealership will give you $3,500 for your trade-in, regardless of condition. Many consumers who have trade-ins with serious problems find these offers impossible to resist. But, be careful, because these...
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...