How the scam works:
(with video below) While you are showing off your new car to your friends, the dealer calls you with some “good news”, saying that they are now able to lower your monthly payments.
All you need to do is go back to re-sign the contract. Great, right? Of course it is! You can’t wait to go back, meet with the finance manager, and go over the new contract. In the new agreement the dealer confirms the car model, the year, your address, and the monthly payment which is now $100 less than before (as promised). Then they go to the last page for you to sign and will probably keep talking at this point about what a good car it is.
What you don’t want to miss is the part where the length of the contract is specified. Instead of, for example, an initial 5-year term, it will now be 6. The dealer has pulled the trick by extending the loan by an extra year, which doesn’t help you save money but actually costs you more, in turn making more money for the dealership.
Watch the video below to see in action many other car dealership deceptive practices.
How to avoid:
If you pull one end of the blanket over your head to keep warm, chances are your feet will be cold soon. When a dealer calls you back for lower monthly payments, check very carefully the length of the contract.
How to report:
Make your family and friends aware of this scam by sharing it on social media using the buttons provided. You can also officially report deceptive practices to the Federal Trade Commission using the link below:Report Scammers To The FTC Here
How to protect yourself more:
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