Eric Davis used to work for Bill Heard Chevrolet, in Orlando, Florida. Erick was brave enough to leave his job, at this Auto Dealer and expose the dirty tricks that most Auto Dealers have been found guilty of. As I promised Friday, I will continue to drive good information about “moving on after an Auto Repossession”.
Stealing and Kicking the Trade, are two of many predatory practices of Auto Dealers
Let’s start thinking about the process of buying a new Automobile. What do most people do, when looking to purchase a new car? They drive onto a car lot to “kick the tires” (take a look at the options). They want to see the latest features, learn about the warranty, financing and trade-in options. That’s when the trouble starts.
“Push, pull, or tow in your trade” and get ripped-off! ‘Stealing the Trade’. So you’ve stepped out of your car and you’re greeted by an neatly dressed sales person. They ask you “how you doing”? and you reply. They know you’re a little skeptical of them so they start with a question. “You looking for a car”?
Of course, you’re thinking this is an ideal Bill Engval, “here’s your sign moment”. You think to yourself, “no, I thought this was a new car museum”…Here’s your sign 🙂
So then, you or your spouse is asked another series of qualifying questions designed to determine if the sales-person should continue with you or, find another prospect on the lot. So, then the sales person races to the big question. “So how much can you afford to put down”? You hesitate to answer, because the commerical stated that ‘no-down payment’ was needed, just ‘sign and drive”. That’s what you intended to do.
You tell the sales person that you intended to push, pull or tow in your trade and leave the lot in a brand new vehicle. the sales person, smirks as if thinking, “you can’t be serious”. But the sales person knows what your intent is, but you may not know, that their intent is to steal your trade.
Stealing the trade is a process in which a buyer/consumer uses their current Auto as a Trade-in on another vehicle. Often the Auto Dealer “steals the trade” by offering approximately a 3rd of the Blue-book trade-in value of the trade-in. In turn, the Auto Dealer will attach the Deficiency Balance onto the loan for the new vehicle. For example, say you’re old car is worth $9,000 according to Blue Book estimates.
The Auto Dealer will offer you $3,000 as a trade-in. But this will leave you with $6,000 that you still owe on your current vehicle. Then the dealer tells you that they can add the $6,000 to the total loan if you purchase with them. In essence, they low-ball you and then add the remainder of the balance to the end of your loan.
The Auto Dealer then values, the trade-in at $9,000, and sells at market or at auction – at that amount (3 times the trade-in value). This is why DEBT WARRIORS have named Auto Dealers as one of many Credit Predators.
You’ll want to subscribe to DEBT WARRIORS UPDATES by email or in your RSS Reader. We are going to lift the hood on these rip-offs and show you how to defend against. We will also show you how to settle your debt after an Auto Repossession.
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DEBT WARRIORS™ are not Attorneys. The information on this blog, should not be considered legal advice. If you need to speak with an Attorney click here:
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