Dealers “markup” financing that they arrange for your vehicle purchase. The Dealer and the Finance Company then share the additional profits! Recently, Ally Financial agreed to pay a huge settlement for giving dealers this ability, and thereby allowing them to discriminate against minorities by charging them more! This violates the Equal Credit Opportunities Act. Automotive…
Just this year a class action settled that was brought against Capital One for financing GAP contracts that, in the fine print, did not actually agree to pay off the full GAP! These phony GAP agreements were written by Beacon Industries. The Consumer’s Friend is looking for victims of this scheme in California. Let us…
Glendora Chevrolet has been sued for hiding payment terms from lenders and consumers on its contracts. The Hanson Law Firm is looking for Glendora Chevrolet customers who paid a downpayment, or any part of a downpayment, after the date of sale. If you or someone you know bought a car from Glendora Chevrolet, please call…
From The New York Times: Loan Fraud Inquiry Focuses on Used-Car Dealers. Inflated income applications mean that some of the most vulnerable borrowers are saddled with auto loans they can never afford to repay. The Consumer’s Friend has found “credit kinking” to be pervasive in the NEW and USED car sales industry. The Hanson Law…
Should you buy an extended warranty — sometimes called a “service contract?” The answer is “No” according to Real Simple Magazine. The median price of an extended warranty in 2013 was $1,214, according to Consumer Reports. The Consumer’s Friend commonly sees dealerships selling these contracts at over $2,000! Dealer cost is only a few hundred,…
1. The ONLY reason a dealer sells an aftermarket service contract on top of a “Certified Pre-Owned” (CPO) warranty that comes with the certified vehicle is to make profit. The coverage is usually duplicative and mostly worthless; 2. When you see a service contract/extended warranty on top of a solid CPO Warranty, there is a…
Car buyer victims of ‘yo-yo’ financing Typical Scenario: Consumer buys car and takes possession of it on a Sunday. During the application process, he provided the dealer with his financial details, including recent pay stubs, while the dealer filled out his application for financing. The consumer signs a sales contract and drives away in the…
The National Highway Traffic Safety Administration is the nation’s authority on vehicle-related safety. NHTSA ‘s new SaferCar app provides important information to help consumers make informed safety decisions involving your vehicle. Features include: · 5-Star Safety Ratings: Buy safe by looking up a vehicle’s crash test ratings and comparing ratings for different vehicles. · Recalls…
The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) today announced its plans to require automakers and motorcycle manufacturers to provide consumers with a free online tool that will enable them to search recall information by Vehicle Identification Number (VIN) starting next year. Many manufacturers already do this, but some don’t — like…
There are 4 new apps on the market to help with car buying: Cars.com, Edmunds.com, Kelley Blue Book, and TrueCar.com. We still think Consumer Reports magazine (online, too) is THE information source for deciding on the type of vehicle to buy AND, using their pricing service, provides the best info to get the best prices. …
