Another Auto Fraud Response. Yo Yo Set Up?

Q: I purchased a new Jeep and have not received financial information. The dealership is not responding. What action can I take?

I purchased a new Jeep  2 months ago. I have not received any information regarding my loan payments. The dealership made an error on the original contract and I was told I needed to sign a new contract and include my first payment. I have the signed contract of sale.

My Answer:

I would make payments according to the original agreement you have for now so as to not injure your credit. Straighten it out with your lender not the dealer. If it is favorable to you insist on keeping it.

The more important issue to my mind is is this actually an auto fraud YO YO Sale set up? Typically, the dishonest dealer will lure a buyer back into the dealership citing a mistake like this and then present you with a completely different deal, one much more favorable to the dealer than the first. If you do go in, do not bring the Jeep and do bring a friend with you, one who has backbone.

The dealer, that is, is “yo yo-ing” you back to the dealership to pressure you to rescind the contract and adopt a new one undoubtedly with a much higher rate of interest. The “basis” would be that the contract has to be revised anyway to remove the supposedly erroneous calculation. This is of course illegal since you already have a binding contract but most buyers don’t know it, assume the dealer is right and go along with everything.

You do not need to stand for any of this because you already have have signed papers and own the car, subject to making payments only, regardless of whether the vehicle has been financed or the dealer misstated the purchase price. A finance document showing payments, rebates, deposit, interest rate and other financial items is a binding contract, giving you specific legal rights under PA law. The dealer cannot change any of this legally once you have taken possession. The dealership is required to have a title issued to you.

See my article herein entitled “Y is for YO YO Sales” for additional information.

Auto Fraud Question Answered

Q:  Just signed papers on used car in Devon, Pa. End of day at closing time at a Mercedes-Benz dealer. 11/28/15.

Was advertised as certified & 1 owner. Was told it was bought new at this dealer & serviced throughout its life at this dealer. We were given the car fax report after signing the papers. Looked at the report & saw it wasn’t bought at this dealer. …

My Answer:

Without even referencing the lemon law or other laws regarding auto sales in PA, this is actionable common law fraud of a material nature. It is also in violation of the “catchall” clause of our state UDAP Statute. I believe I know this dealer as a quality operator generally and am very surprised at their behavior in this instance. Sounds to me like some renegade salesman trying desperately to make quota. Why material?  Because you 
indicate you would not have made the purchase had you known the truth about the car. 
Why fraud? Because untrue statements were knowingly made with the intention of causing reliance upon which you reasonably relied in making the purchase. They cooked their own goose by handing you the Carfax only AFTER you signed, showing clear intent to defraud. I would say you have the right to ask for compensation as the remedies for auto fraud can be quite severe (above and beyond actual damages) and can even include reasonable legal fees in a proper case!

Best of luck to you.