Auto backdating bank cash contract dealerships fraud rebate
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If you answer “Yes” to any of these, you may be a victim of auto fraud.Read the appropriate sections and consult an attorney if you still believe you were defrauded.
When negotiating the price of the vehicle, make sure you ask the dealer if the price includes any accessories or options that come with the vehicle.
Make sure you closely examine each line of the TOTAL DOWNPAYMENT section of the contract.
Pay particular attention to the Deferred Downpayment (payments to be made at a later date) and Cash lines.
Back To Top Another form of fraud is the fraudulent practice of not crediting the full amount of the customer’s downpayment.
This tactic may occur when a customer pays the downpayment in more than one installment or pays it in cash and forgets to get a receipt.
Contract backdating typically occurs after a car dealership has canceled an automobile sale or lease contract because it was unable to find a lender that would finance the transaction.
The dealer contacts the buyer, tells him or her that they need to come in and sign a new contract if they want to keep the vehicle, and the consumer returns to sign a new contract.
Sometimes, the salesperson will imply that the warranty is part of the deal, even though the customer is actually being charged for the service contract.
Make sure you closely examine the SERVICE CONTRACT line of the contract.
Although most dealerships will only charge customers for the options they authorize, it is not uncommon for unscrupulous dealerships to include many items that were never discussed.
Make sure you closely examine the CASH PRICE VEHICLE and the CASH PRICE ACCESSORIES.
Most reputable finance companies do not allow the dealerships to impose an APR that is more than 3 percentage points over their buy rate.