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...
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...
Setting a Budget BEFORE Car Shopping
We continue our blog series on things to do before car shopping at a dealership. One important step to take before visiting a dealership is setting a budget. I bought my first car in 1982. Although I had graduated high school and had two years of college, I was...
Setting a Budget When Car Shopping
I bought my first car in 1982. Although I had graduated high school and had two years of college, I was financially naïve. I had never learned how to set a budget or how to manage credit. I was, in that sense, very much like many consumers today. Fortunately, the...
Check Your Credit Report Before You Start Car Shopping
The next article in our blog series on things that people thinking of buying a car should do before they visit a dealership addresses the importance of checking credit reports. According to a 2019 study,over 85% of new car purchases and over 55% of used car purchases...
The Way We Buy Cars
Not many people are car shopping during the COVID-19 shutdown. However, once businesses re-open and people get back to work, car dealers will be aggressively marketing to the public. In order to help our clients and friends avoid becoming a victim of the Games...
Toxic Car Dealerships
A recent lawsuit filed by employees of a New Jersey auto dealer shows the toxic atmosphere that exists in some car dealerships. While there are many car dealers that respect their employees and customers, we have heard many stories from employees and consumers about...
Avoiding Repossessions During COVID-19 Shutdown
Are you concerned about avoiding a repossession due to lack of work or reduced income because of the COVID-19 pandemic? Consumer Law Group Managing Attorney Dan Blinn offers advice on dealing with auto lenders in this new video.
Why Does the State Tolerate Auto Dealer Fraud?
The most frequently asked question that we hear from consumers who have been victimized by Auto Dealer Fraud is "How Do They Get Away With It?". We regularly see examples of auto dealers committing fraud, forgery, odometer violations, and the sale of dangerous cars....