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 inspection by dealerships, who "certify" that the vehicles meet stringent standards established by the manufacturer.
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.
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 advertisements are deceptive and are a type of auto dealer fraud.
Consumer Law Group is in the news. This recent article links to Dan Blinn's recent blog article about car dealerships Selling New Cars for More than MSRP. Consumers need to look over their paperwork carefully before they sign to make sure that they are not overpaying when buying a new car.
Some car dealerships routinely make promises that they know cannot be kept. "Come back in six months" they say, "Your credit will be better and we can get you a lower payment."
Many consumers contact us after they discover that they paid significantly more than the "sticker price", or the manufacturer's suggested retail price ("MSRP") for a new car.
All too often, consumers come home from a dealership and realize that they cannot make their new car payments. They often wonder how they could possibly have been approved for a loan that they could not afford. Most often, they are victims of credit application fraud.
Industry insiders know that some auto dealerships regularly engage in criminal activity. For example, one employee of a large Connecticut dealership recently confirmed to me that dealership employees routinely forge signatures; he said that forging a signature was "like smoking a cigarette," something done many times a day.
Most consumers trade-in their old vehicle when buying a new car. These deals can be complicated if there is still money owed on the trade-in, and a consumer can have real problems when the dealership does not pay off the trade-in.