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...
Connecticut pre-owned vehicle warranty protections
Consumers who buy a preowned car should not purchase someone else’s problems. They should know about Connecticut’s law that helps protect them from vehicle warranty problems. Coverage Under state law, warranties are required for a used car purchased from a dealer...
Spotting odometer tampering in a used car
Until the advent of digital odometers, tampering with the analog odometers was perhaps the most common type of fraud involved in used car sales in Connecticut and elsewhere. The National Highway Traffic Safety Administration once estimated that more than 450,000 used...
Beware of hurricane damaged vehicles
Connecticut managed to avoid any extensive damage from the historic 2020 hurricane season. However, used car buyers should still be on the lookout for vehicles that may have suffered from flood damage. Often, flood-damaged cars are transported far beyond their...
What is odometer fraud?
When people in Connecticut purchase a used car, one feature they may pay particular attention to is the milage on the vehicle. In general, vehicles with lower mileages will have less wear-and-tear and thus may be more reliable vehicles. However, not all dealers are...
State law protects buyers of used cars before and after the sale
Connecticut has laws which authorized used car dealerships have to follow. These laws are there to protect customers from paying way too much for a car that has significant mechanical problems. Before the sale of a vehicle, a prospective buyer has the right to have...
An overview of Connecticut’s Lemon Law
Most residents may not know this, but our state was the first state to enact a “Lemon Law” to help car owners of defective vehicles. In fact, the program has refunded or replaced vehicles to the tune of over $60 million. Where is the Lemon Law? “Lemon Law” is not...
Financing scams run by auto dealerships
People in New Jersey use their vehicles every day to get to various places that they need to go to. However, cars do not last forever and people need to buy new vehicles from time to time. People have different options on where to purchase their vehicle, but many...
What are lemon laws?
Lemon laws provide many important protections for car shoppers, car purchasers and consumers. For that reason, anyone considering a car purchase or who has recently purchased a car should be familiar with lemon laws. What is a considered a lemon? What qualifies as a...
What makes a problematic vehicle a “lemon” under the law?
When we purchase a new car from a dealer, we have the right to expect the vehicle to conform and perform to the expectations advertised by the manufacturer, as well as the dealership. However, many cars do roll off the assembly line with problems that were not caught...
What if I buy a car that’s been in an undisclosed accident?
Buying a used car always is a little bit of a gamble. You may choose to buy a car from an auto dealer because you feel better about that than buying one from a private party. However, auto dealers sometimes are sneaky and may try to sell you a car without disclosing...