Car Dealers Ripping Off Customers

Over 700 New car dealers have closed their doors nationwide. But some of them are taking advantage of their customers while they were making plans to close their doors.

These is called "Shuffling Money". This is how the scam works and surprisingly they rarely get in trouble for doing it.

Let say that you want to buy a new or used car. So you visit your local car dealer and you offer to trade your car to get another car. You owe $10,000 on your car. So you'll need them to pay your old loan off so you can get the new car.

By law after you sign the contract and take delivery of the new car the dealer has 7 days to pay off the other car you traded in.

They must also notify your previous lender that they have taken posession of the vehicle, thus releasing you from insurance claims.

That's in a perfect world!

This is whats happening now. Some dealers are having a hard time due to the current economic conditions. So they are actually getting the money from the lender that financed your new car and not immediately paying off your traded in vehicle.

Some dealers are even taking it further and selling your traded in vehicle and getting the money for that vehicle. Which is a violation of the law, because they sold your trade in without a clear title.

I've learned from several dealers that they did this during good times, but they could always make new sales to catch up and pay off the traded in vehicles.

The disturbing reality is that an individual could be held liable for both vehicles eventhough the dealer committed a crime.

From my research the dealers that have gotten away with this usually bought the trade in vehicle with one contract and sold the new vehicle on another contract. This ensures that the new lender is protected because there were no other vehicle committments tied to their contract.

HOW CAN YOU TELL IF THIS IS BEING DONE TO YOU:
1) If you call your previous lender and they say the car hasn't been paid off.
2) If you call the dealer and they keep giving you excuses about the check is in the mail.
3) If you are owed a 2nd set of keys or floor mats. (this is a tell tell sign that the dealer hasn't paid the auction dealer for the vehicle yet.)
4) If you haven't received a title for your new car yet. (My investigation has found that some dealers can lie to get a new title usually if the vehicle was titled in another state before sold at auction.)

WHAT CAN YOU DO ABOUT THIS BEFORE IT'S TOO LATE:
1) Always make sure your trade in is listed in the contract for purchasing your new car.
2) Check back with your previous lender to make sure they have been notified and that they balance is paid.
3) If you are getting the run around stop in at the dealer and make them write a letter explaining what has happened and ask them exactly when they will send the payoff check. Request that they send it next day confirmation delivery US Mail and that they make a copy of the check/cashiers check and fax or provide you a copy to pick up before they send it off. (this will establish a written paper trail if you have to go to court)
4) If they will not do #3 IMMEDIATELY contact your state automobile dealer inspector. Check your phone book or online.

You must also immediately contact the new lender of your new vehicle and inform them that you will be voiding the contract because it was never finished due to the dealers violations. NOTE: if your trade in isn't on your original contract you may run into some problems.

Immediately ask the dealer to give your trade in vehicle back. If your trade in wasn't listed in your original contract, hopefully they sold your vehicle to another person which would stack on violations of the law. Moving the bar more in your favor.

Way are the dealers not going to jail for this? Because they are incorporated business plain and simple.

Take a look at this video:
http://www.wftv.com/action9/17980827/detail.html

If you find yourself in this situation please contact me.