Car Dealership Scams

[emantabrizi]

Where was the scam? O_o

[MelkorHimself]

$360 x 60 = $21600. $280 x 72 = $20160. The dealership actually cut $1440 in gross to give her the payment she wanted.

[tinderinc]

Signing for a car payment is like asking to die. Intrest can equal $2500-$50,000+ depending on the item. Most home mortages over 25 years equal out to enought intrest to pay the loan back double.... do the math people before you sign. THE SALESMAN ISNT YOUR FRIEND

[graverobber35]

this is from Dateline NBC , they are well-known liars.. Remember way back when they were doing a story on flaming pickup trucks? Their story said that Chevy pickup trucks would burst into flame because of the fuel tanks...What they DID NOT tell you is that they placed a lit candle under the test truck, so there would be am ignition source for the fire. FAKE FAKE FAKE

[graverobber35]

this is from Dateline NBC , they are well-known liars.. Remember way back when they were doing a story on flaming pickup trucks? Their story said that Chevy pickup trucks would burst into flame because of the fuel tanks...What they DID NOT tell you is that they placed a lit candle under the test truck, so there would be am ignition source for the fire. FAKE FAKE FAKE

[SVTTRAC]

Hmmm....She signed the contract....she didn't read it? I don't understand? If she said, "make my payment $280 and I'll buy it"  What is wrong with compensating with term? You did what she wanted. If she said, "make my payment $280 with 60 months" The dealer would have probably passed on the deal and then they don't get a sale and she doesn't get the car she wants. I don't see the problem with any of this. If she didn't read the contract .... thats on her.

[II4037man]

This article is so wrong lol.

[robfolcroft]

@mrmalikperry Or you can always pay a little more over than monthy minimum payment! This is not a scam. This is just the salesman doing what he was asked to do. She wanted lower payments? She got them.

[graverobber35]

The extra money she pays is called a STUPID TAX . Buy a cheap car that you can pay cash for , say $2000 ,...Then drive the paid for car while you save up for a better car.

[weldersmart]

did anyone try carshen dot com ? Let dealers bid. they claim it can save 3000 dollars on a car purchase... any feedback from carshen dot com?

[hassl78]

@weldersmart yes!!!!! the best way to buy anything is online including your car!!!!!! i purchased my car through carshen .com great site easy fast and user friendly I didn't have to deal with any pesky dealership salesman bugging ma as soon as i enter the lot or even have to worry about getting suckered in the best website ever carshen

[zpr880]

thats not a scam! its called interest, morons!

[kralovna2010]

If only I am stupid...she indeed saved money..as the old bitch with black board said 360 x 60 = 21600 and then the youger bitch wanna save monthly installment and she wanted it for 280 x 72 = 20160...so she indeed saved around 1500 USD..what more she wants...bitch. And the sales man told its a good deal and it indeed is. 

[TheCoolfez]

Yes, car salesmen will take advantage of you. So will doctors, construction workers, plumbers etc. It's called don't be a DUMB*** and do your homework. There is no free lunch.

[ricksham12]

Finance company's make money on 0% because dealerships never offer 0% and not offer rebates. You can either take 0% and give back the rebates to the bank or you can take the 2000 dollar rebates and pay an interest rate. Buyers are liars and video's like this is what make ppl so retarded.

[jasongsxrful1000]

ok if you only make a thousand dollars a month what are you doing buying a mustang for 20 k

[TheCoolfez]

@jasongsxrful1000

exactly! I drive by a government subsidized apartment building where only low income people can rent. I see several Lexus and Mercedes.

[tien714]

car dealerships are lairs; do your own homework.

[aminevich]

If Tory has difficulty with the financing, I can sell her a "calculator" for 12 easy payments of....

[VIDEOTIMEMACHINE]

Never buy a new car. Buy used and only finance for 3 years.

[88pistonsfan]

@VIDEOTIMEMACHINE Most of the time if you buy a Used car for 3 years your payments will be much higher then if you were to buy a used car at 48 or 60 months. Never buy a new car? Really? I'll never buy a used car ever again at a dealership why? Because I've had salesman try to sell me cars at 70K for 10,000 and at 3 years my payments would have been sky high. Most places won't allow you to finance 3 years unless the car is over 10K.

[VIDEOTIMEMACHINE]

@88pistonsfan Buy at Carmax . They don't pull that garbage. Of course your payment will be higher for 3 years. But if you can't afford the payment at 3 years, you can't afford to buy the car.

[heartlessvietboy]

Its not the longer term the more interest you have to pay. Its the longer the term, the longer it is than the shorter. (LOL) Because how can you pay more interest on a 0% interest long term loan? It's 0% interest!!

So how do Banks money on 0% interest?

[ricksham12]

@heartlessvietboy Finance company's make money on 0% because dealerships never offer 0% and not offer rebates. You can either take 0% and give back the rebates to the bank or you can take the 2000 dollar rebates and pay an interest rate. Buyers are liars and video's like this is what make ppl so retarded

[heartlessvietboy]

What does annual percentage rate mean? You are paying that percent annually. So if your Annual Percentage rate is 4.9%, you are paying 4.9% every year for the amount you finance. Why not charge a direct 4.9% interest rate for the entirety of the amount you borrow?? Because in America they invest in the Stock Exchange. LOL.

[heartlessvietboy]

How can the dealer be the one to offer 0%?? Isn't that the Banks job??

[Dosalt]

@heartlessvietboy no because dealer has close ties with banks and banks will listen to what dealers say most of the time. That's where the bank or the broker earns!

[jazzyjeff308]

when are you going to post a video of a good car transaction?

[camopaint0707]

fyi 360x60<280x72

[krazzieJ1031]

No shit. that is not a scam that is common sense. If he didnt tell her that they are showing her 72 months then they misinformed her. every customer is well informed about the payments. In finance, he is trying to help her get a car. You people in these news are full of crap there are a lot of people out here who need cars to be able to help get around in town and esspecially in cold climates. most costumers would be very happy if finance managers do that for them.

[vynstik]

looks like they cut the deal by at least $1500, if you figure the interest and possible fees from second chance auto loan banks the dealer probably made about $500-%1500 on a $20,000 car deal that's 2.5%- 7.5% profit. now ask yourself this. Is the company you work for in business to make money.

[krazzieJ1031]

you are wrong pal. No dealer makes money on second chance finance. We have to pay them for that. If that was the case everyone would have car and everydealer will do what ever they can to have the second hand finance.

[vynstik]

@krazzieJ1031 i didn't say the dealership makes money on it i said they loose profit on it. for instance if you sell a car with $2500 front end gross and you have a $2000 fee from the bank you net $500 front end profit. that would be what is left after the bank takes their cut for doing the roach

[vynstik]

I like how the dateline girl does the bait and switch on figuring the payments. car started at $360x60 months that's $21600 and when he extends the payment to 72 month its $280x72 to total $20,160 not to mention that the interest is going to be a larger % of the total price for a 72 month note. F*cking news people and they say you cant trust a car salesman.

[krazzieJ1031]

@vynstik they just lookinf for some intresting news. what better news than to bash the car sales buisness.

[itzfast]

Kiss my ass! Since when is making a profit on a product unethical. Btw, Who gets to sit behing a desk and dictate how much profit is fair to make on one item and not the other? Why is it acceptable for a jeweler to make a 30%-40% mark up on a diamond ring but a car dealership gets nailed to a cross for making $5000 on a $25,000-$30,000 Mustang? Profit is the excess of returns over expenditures agreed upon by two parties. Have you ever tried negotiating a price on a flat screen at TV Best Buy.

[krazzieJ1031]

@itzfast well said

[d4seasons]

@krazzieJ1031 as consumers we need to think twice before we act. most importantly always go to purchase a car w/ an older friend. car dealers will cool off a bit. anyway it's still a mess. car dealers are there to make money anyway they can. i've noticed for over 30 yrs. car dealers do not appreciate consumers when they're just browsing. they expect you to buy. they stare & glare @ you.

[jordanjcm]

yeah but she does not have to pay 360 for 60 months she has to pay 280 for 72 months. She wanted lower paymens and she got them. What is the problem?

[blutterback1234]

@jordanjcm that's what I'm saying, if people are to stupid to calculate their payments and make sure they have all of the the information the dealership is processing then you cannot get the short end of the stick.. Although the guy messing up the financing application should never be in a business setting again.

[krazzieJ1031]

@jordanjcm the fake prblem the news is trying to say is she will be paying more in the long run. And everyone knows when you finance something for 72 months you pay more on intrest. is common sense to know that. so the reporters are trying to say its a scam. When its clearly not

[jordanjcm]

@krazzieJ1031 That is what I am saying. I am saying that the news is not making any sense. She wanted lower payments and she got lower payments.

[tbursee]

thats bank fraud dude

[douglasericeii]

Here's an idea of how not to get taken--read the freakin' contract! It's not the seller's fault if the buyer doesn't care what they are getting themselves into!  You shouldn't be buying a Mustang when you can't afford it!

[uncoverbrother]

this is very common. if you don't negotiate the TOTAL price of the car first, then they're gonna take your ass for a ride without any anal lube. it's just the name of the game.

[walkinc1]

But she could not afford the mustang with the longer terms which mean she should gotten a less expensive car.

[walkinc1]

to buy a car not to get taken for a ride.

[itzfast]

@walkinc1 Well you got the bonus plan cupcake!

[tomboi1978]

It seems to me that torry SAVED money. The car was supposed to be 21600 but she got it for 20160. How is that not less? The contract will state 72 months. She didn't read so the dealer is a scam? The finance guy was most def in the wrong and at the minimum should be fired. When you look at that aspect the company admitted the wrong and promised to correct it. I see no fraud here. I see a buyer who wasn't prepared and didn't read her contract and STILL ended up SAVING money.

[JediMasterRich]

Women can't do math overall period. They never stop to think what they can afford, factoring in the interest rate, the term of the loan, etc. Single women owning houses were the single largest groups responsible for the current housing loan crisis not being able to factor in their monthly payments, credit card payments and what their income was. The $0 down scams were designed to lure in the single women who are blinded by the idea of owning a house and can't stop spending on shoes and clothes

[federalwarhawk]

If I see a nice used car a dealer has that I want. I call them up and tell them I am moving out of state or just need to sell my car, and ask them if they would like to buy my car, and describe the car on their lot, same yr,mileage,options etc, they sometimes say that they have one already

that they can't sell or tell you what its worth, then i know what they paid for it and bargain from that price, and also know they need to sell it because it has been on the lot longer than than normal.

[yerovi86]

the problem with people is that they dont do their home work before going into the dealer. Knowing what YOU want and how much it cost. Write it down and compare. it usually helps if you have your own finance before getting the car.

[AcidDaBomb]

Ok I sell cars for a living and I can tell you for a fact so many of you guys are so stupid. Our dealership doesn't focus on the "Monthly payment" we focus on the OTD price (out the door with TT&L) if you can't afford it we don't sell it to you.

And that has given us a name that people trust which is why we move tens of thousands of units a year.

Don't be stupid.

[Htown75]

I went to test drive a 08 mustang. Car drove nice, no issues noted. So when we went back to the dealership, the salesman tried to get me to enter some manager dudes office. The manager guy starts the conversation, "so your buying a car". I said "no, I came to test drive a car, not going to buy it". This dumbass then goes and says the same thing completely ignoring what I just said and says, "you came to buy a car right?" I then politely said "no" and thanked the salesman for his time and..

[Htown75]

....walked out of the dealership.

[fixinggrace]

A beater is better than making car payments.

[thecrazyaviator]

the only reason you need gap ins is if your car will be worth less than what you owe. if the "gap" is significant to the point you must get gap ins means you are getting taken.

but people just do your homework and stick to your plan.

[Deskonet]

21,000 for mustang ? mama-rita ? worth about only 5,000 no more !

[nakabar]

what is this? are people really that fucking stupid? you don't know you'll have to pay longer term with lower increments?

[itzfast]

@nakabar Yes they are that stupid! morons!

[cesarinpinpon]

you ignorant people! on the first case its called paying interest if you are a mut person with bad credit the higher the interest is.

[06tCmF]

i void all this by paying my cars with cash...if i cant afford i dont buy it if i want something i save up until i can afford it..no leasing for me not worth it...feels good when you know you own the car knowing you dont owe anything on it you worked you butt off for it

[Calliber50]

Welcome to the real world. If you want it, you can't always have it, but someone will sell you it for more than you can afford.

[walkinc1]

These people are con-antis please read the fine print, in today's auto buying experience you half to read  the big print to.

[Greg9942]

I had a friend that got a new Ford truck in 1994. Cost a little over $19,000. $400/mo for 4 years. I told him he must have financed 5 yr. I said $400 is too low for a 4 yr note. He swore it was 4 years.

35,000 miles and a year later he went to trade. He found he had a 4yr LEASE. The finance guy helped him by changing his buy to a lease so he would be able to get it. He was so excited to be able to get it that he didn't pay attention when they told him what they had to do for him to get it.

[AndItGoesToWaste]

Everything that's been wrong with the finance industry for the last 30 years. Screw those greedy bastards.

[TheKillingWords]

My first new car experience was a complete piss-off. I got it from a dealership in AZ. 2 weeks later the dealership called and said that my credit wasn't good enough to get the payments down to what we agreed and I had to bring it back. They tried to tell me that since I signed a contract I HAD to get a lesser car. I said I signed a contract for the car I drove off in, not any other and that it was null and void. I tossed the keys at 'em and told em to fuck themselves. WOW they were PISSED!!

[ac51979]

You made they mistake a lot of car buyers fall for. You signed a contract with the wording "pending bank approval" or wording to that effect on it.

As you mentioned, this can land you in a situtation that no person should have to be in because a con-artist is looking to make a fast buck.

If you ever see this again, demand that they remove it. If they refuse walk out; they don't deserve your bussiness.

[PUREAAMERICAN]

Back in the day it was easy to make a five pounder on a sucker. You work the deal as a sale, if the numbers don't work roll them into a lease and burry the mo fo. Car sales are a hard knock industry, be smart, know invoice and dealer incentives, rebates and dealer holdbacks and low ball the dealer, shop around, someone will want to move inventory and shift a good deal your way.

[Srd1126]

I used to work on the finance end at a bank and chalk this up more to stupidity than dishonesty. Read your paperwork-and anyone who knows even basic math knows to ask how he got the payments down. Principal/rate/time--one has to be changed.

What amazed me more is how many people sepereate the car from the loan. They think all that negative equity "dissapears" or a repo "settles" the deal. We need some better consumer education in high school. Teach street smarts.

[ac51979]

They don't teach street smarts in school anymore; they teach whatever the polticians want schools to teach.

You make a great point.

[tmyers921]

Anybody who goes into a car dealership to buy a NEW MUSTANG and only makes $1000 a month,,,I bet their credit is bad enough to cause a higher interest rate from the bank. Come on,,,give me a break. People are so stupid!!

[walkinc1]

Possibly there credit is bad or just young or naive to auto financing the banks and lending institution have high price legal team to draw up these contracts to make the borrow think he/she are getting a deal.

[scchapmanfan]

Im sure you are getting payed for your job too, Sir.

[walkinc1]

I call it sight of hand financing.

[Shultzgti]

I was tricked into this scam as well. You don't even know it because they never let you see the numbers. When we signed our car loan at the dealer we never saw these numbers until we got home and opened up their nice little "packet". It costed us $45,000 for a $25,000 dollar USED car even though my spouse and I have excellent credit.

[luminarida]

HAHAHAHA. The dealer actually gives you a contract that says how much your buying the car, how much interest you will be paying and your payment. If you where not bright enough to look at that then that is your own fault.

[walkinc1]

This is true.

[redefiningvoice]

The finance guy was in the wrong, and should lose his job.

[speedracer5693]

lose his job? he should be put in jail

[KENDADDY126]

First of all, Dealers almost never make that much.. even counting the back-end money...I know, I am a dealer... I've NEVER made that kind of profit. Second, Mcdonanld makes a few bucks off of you every week, the dealer sees you every 4 years or so.. so the profit as a percentage is probably the least you pay for anything. Most retailers average about 36% mark-up. Anyhow... I'm not defending these guys, just saying Dealers are not a "non-profit" organizations. Thanks

[KENDADDY126]

Why do people get so ill at car dealers for making a profit. Let's look at the profit margin of any retailer and see how they measure up! Let's attack Mcdonalds or Belk or something.

[walkinc1]

Mickey Dee's profit margin can be measured with in a dollar or two but the dealership profit or in the thousand and if you don't pay attention it can be 5 or 10 thousand now is that fare?

[luke19631963]

The problem is integrity. Unscrupulos dealerships take many uninformed car buyers for a ride with all sorts of unnessesary or even criminal tricks. For example lying to a potential buyer about their credit score in order to get a higher interest rate on the RISC. I have no problem with a dealership making a profit, I do have a problem with them doing stuff like this one did to make a profit. Just because you can take advantage of someone for a few more bucks doesn't make it right.

[KENDADDY126]

I don't really see the probelm... the payments are 330 for 60 or 280 for 72 STUPID...Look at the contract before you sign.

[luke19631963]

LOL... At 330 a month she doesn't buy the car, at 280 she does so the dealership makes a sale. Yeah she should have looked or asked how many months this was for and that is why one should not be a payment buyer. But really its the same as a dealership that advertizes they will pay off your car loan no matter what you owe to get you in a new car. Why don't they just tell the truth that they roll that into the new car price? Because then they wouldn't sell as many cars.

[KENDADDY126]

If a car dealer told all the "fine print" in their ads they would never sell a car! LOL. I can hear the commercial now: "Do you have perfect credit? Do you have equity in your trade? Do you want to have high payments? Come see us! Wow, they would really be beating down your door

[luke19631963]

That has nothing to do with unscrupulos salesmen/finance officers. What is wrong with just advertizing a price for a car and when people show up to inquire find out what they are willing to pay for the car and be honest with them about their credit score and hoenst about all the options on the car and other add ons dealerships usually like to buly people into getting? I would much rather trade with honest salespeople than someone I catch trying to rip me off.

[markofthebeastxx]

You can't blame the dealership for anything in this case. If this person was so stupid and didn't realize her term was extended by a full year, she belongs on a short yellow bus, not in a mustang. People need to read things before signing them instead of blaming everyone else. How the hell do u buy something without knowing the selling price?

[walkinc1]

You are right but most people do not read any Document legal or not they are given, but just because you don't read all the fine print an I mean fine should I get riped off from a so call reputable dealership I guess the answer is yes.

[KENDADDY126]

The terms of the contract are NEVER in fine print... She knew what she was getting into. They still probably made a good profit.

[walkinc1]

I agree with you personal responsibly, but this was a con job she told them how much she made and they said basically you half to falsifier this information to get a car these dealers are money hungry and will stop at nothing to make a buck legal or illegal.

[luke19631963]

Why didn't the salesman simply tell the girl "I made your monthly payments lower by stretching out your payments another year"? Gee that would be too honest I guess.

[charlesf177]

I work at a car dealership and the expert is right always work your deal on price. I can't believe the guy telling her to change the income.

[maxleoncini]

Stop buying cars folks!

[53henryj]

I swear to god the people that wasted their time to make this dumbass story and the morons that watched it thinking,, Yeah thats wrong! Are RETARDS!!!!!!!!!!Does anyone know how F"N interst works, DO THE F"N MATCH She more than likely paid the market value for the car and if i heard correctly,,she had to get approved by a bank, not the dealership. How does the dealership make all the money? They don't the F"N BANK DOES. How about a story on them? She makes payments to ghe bank, go after them.

[walkinc1]

I understand that the car dealerships need to make money but the profit margin is redicious they don't need to make 5000 to 8000 in slight of hand finance charges the bank didn't do that the finance manager did, the dealer works with the bank and they both make big money beating people out like yourself stay tune I will be exposing the banking industry next!

[53henryj]

You still don't know what the number was she paid for the car so she could have got a discount and with the rate it could still look like she was paying msrp there are alot of things that are not right with this story. the finance guy sould have known that that was rong but as far as the profit on the deal no one knows. do you go to walmart and complain over the price of food? or with gas have you not bought gas becuse of the price?

[scorpionkings]

My family OWNS THREE car dealerships, TRUST me they do what's necessary to make a sale! The dealership really couldn't careless if the buyer can afford the car, it's going to be the BANKS coming after the buyers the dealerships have ALREADY been paid.

By the way Mr. perfect no it all car shopper! Try feeling some compassion for people that aren't as perfect as yourself! JERK

[KENDADDY126]

Amen brother. No one attacks banks, CVS, Wal-mart, Blockbuster, Movie theaters, Phone services.. and so on, but these companies ALL make profit off of you.... But the dealer is the Criminal.

[luke19631963]

Don't know why you think nobody "attacks" these business'. I and many I know have changed companies or dropped them all together because of rip offs.

[shyboy612]

no shit! the selling price of the car stays the same. the BANK borrows her the money and she pays the BANK back at their intrest rate. this whole story is a scam(except for the finance guy changing the 0 to an 8)

[valerysgirl]

This happen to me in Shelbyville, Kentucky at a local dealership. I had to go to court in Frankfort KY with my lawyer. When my lawyer showed up at the dealership, they went into a room and closed the door. When they came out, they said, "sorry we made a mistake", we won't send out anymore bill payments. What crooks! Be careful buying a car. I was ripped off twice and I thought I understood what they were doing and I thought I was getting a good deal. They got closed down by the State Attorney.

[Cargo1273]

Single biggest mistake for most car buyers is Buying with a monthly payment figure instead of negotiating the selling/final price which most of the times is lower than trying to be at a certain monthly range. I made that mistake with my first two cars (one used another new) which were bought using the monthly budget payment scam instead of the final price and to top it all the loans were both at 9.99% APR. Still GAP insurance is a good investment in case of randoms act of God.

[mike091329]

well she's dumb... you should do your research first before you buy a car....

[icephoenix23]

Im going to buy a new car and trade my old one in. I still owe on my car and they will roll the payments to the new car and give me a longer time to pay. Also they will trick you with gap insurance. They can make it lower but it will be longer. They are not your friends.

[walkinc1]

You are so right.

[edy18620]

good tip: finish paying your car first. believe me

[KENDADDY126]

Don't roll over the loan... You cannot borrow your way out of debt! If you do.. please get the GAP.. you need it!!

[IBMeddling]

ya right, That was just an isolated incident. Ha ha

[walkinc1]

This happen every day all over this country the saying is a sucker is born every minutes.