Did You Ever Buy a Yo-Yo Car?
Feb 8, 2023 06:55:28 #
Believe it or not, this is actually legal in some states. Even if it isn't legal, it is practiced throughout the country. Below is a true story from "Lehto's Law" on You Tube.
A young couple with two little kids needed a new car. They went to a dealer and settled on a Hyundai. They traded in their current car, paid a downpayment, and signed the papers. Three weeks later, the dealer called and said the financing fell through, and they would have to come in and re-do the whole deal. They were given less for their trade-in, paid more as a downpayment, and had a higher interest rate.
The following week, the dealer called again with the same story. They turned him down, and he had their Hyundai towed. They had no car, yet they were still making payments on their old car because the dealer sold it but didn't pay it off. Two kids, no car, no money. They eventually went to a lawyer. After some time in court, the dealer was ordered to pay them $225,000.
https://www.youtube.com/watch?v=TtBUldCvuos
A young couple with two little kids needed a new car. They went to a dealer and settled on a Hyundai. They traded in their current car, paid a downpayment, and signed the papers. Three weeks later, the dealer called and said the financing fell through, and they would have to come in and re-do the whole deal. They were given less for their trade-in, paid more as a downpayment, and had a higher interest rate.
The following week, the dealer called again with the same story. They turned him down, and he had their Hyundai towed. They had no car, yet they were still making payments on their old car because the dealer sold it but didn't pay it off. Two kids, no car, no money. They eventually went to a lawyer. After some time in court, the dealer was ordered to pay them $225,000.
https://www.youtube.com/watch?v=TtBUldCvuos
Feb 8, 2023 07:01:05 #
Feb 8, 2023 07:45:13 #
Ava'sPapa wrote:
Sounds like a boss I had when I was selling cars back in the 70's.
It's a shame that car dealers have such a bad reputation, and it seems to be universal. I have two female friends who need new cars, and they hate going to dealers.
Feb 8, 2023 08:11:31 #
jerryc41 wrote:
It's a shame that car dealers have such a bad reputation, and it seems to be universal. I have two female friends who need new cars, and they hate going to dealers.
That's all part of the game, Jerry, unfortunately. There are some scrupulous salesmen, but that occupation attracts the "slick" types and it's been going on for decades and decades. I recall a fellow salesman "triple dipping" a woman who wanted a car and would sign anything to get it. He financed her at three different loan establishments to get her a new Volkswagen. It was repossessed within 6 mo. and she was left without a car. These guys got off on that (making "A" sale), no matter what. I could go on and on, but you get the idea and I'm sure that you've heard it all too. I love cars but that wasn't the occupation for me. I went to work for the USPS and retired after 40 years. My suggestion would be for them to decide on the car they want and go to a couple of dealers and get the best price. Are you a good negotiator? Maybe you could accompany them. Good luck to your gal pals.
Feb 8, 2023 08:13:24 #
Ava'sPapa wrote:
That's all part of the game, Jerry, unfortunately.... (show quote)
I've told my two friends to be sure to bring someone with them. If they ask, I'd go.
Feb 8, 2023 09:38:10 #
therwol
Loc: USA
jerryc41 wrote:
Believe it or not, this is actually legal in some ... (show quote)
Another reason for Yo-Yo cars is sub-prime loans at outrageous interest rates that people end up defaulting on. This piece by John Oliver goes into that in depth, and there is a funny skit at the end where he pretends to be a predatory car dealer.
https://www.youtube.com/watch?v=4U2eDJnwz_s&ab_channel=LastWeekTonight
And then there is this.
https://oag.ca.gov/news/press-releases/attorney-general-bonta-announces-settlement-banning-paul-blanco%E2%80%99s-good-car
Feb 9, 2023 05:42:34 #
jerryc41 wrote:
Believe it or not, this is actually legal in some ... (show quote)
Thats why I usually got my own financing or bought a car I could pay for.
Feb 9, 2023 07:47:49 #
Feb 9, 2023 08:09:50 #
jerryc41 wrote:
Believe it or not, this is actually legal in some ... (show quote)
Two things I have learned about buying a new car from dealerships.
1. Never sign for an automobile purchase before loan terms and conditions are thoroughly approved.
2. Do not offer a “trade in” until the purchase terms and conditions are agreed upon. Then and only then should you offer a “trade in” even if they ask for one before purchase agreement.
Feb 9, 2023 08:27:26 #
keywest305
Loc: Baltimore Md.
My wife refuses to go to purchase a new car. She says the salesman are all liars and she can't deal with it. One year in 2005 we offered 32,000 for a 36,000 car on showroom. The Mgr said no so my wife said let's go I'm not crazy about the car anyway. As we walk out he came to door with salesman and said if you buy now 32,000 deal. Back in and looking at paper work the car was back to 34,000 with all the additional. We start to walk and now Mgr was upset. My wife said I told you 32,000 that says over 34,000. He said you have to pay all the fees and she said fine I don't want it. We walked across parking lot and he screams out the door ok 32,000 on the road. We were signing the papers and the salesman says you sure got my Mgr upset...haaa
Feb 9, 2023 09:25:20 #
sueyeisert
Loc: New Jersey
jerryc41 wrote:
It's a shame that car dealers have such a bad reputation, and it seems to be universal. I have two female friends who need new cars, and they hate going to dealers.
If you belong to Costco you can buy a new or used car through them.
Feb 9, 2023 09:33:03 #
jerryc41 wrote:
It's a shame that car dealers have such a bad reputation, and it seems to be universal. I have two female friends who need new cars, and they hate going to dealers.
My wife dreads going to a dealer with me jerry. She knows from past experiences that at some point my blood pressure will be on the up, and there will be 'words' exchanged, I often wonder if our name has been circulated to other dealers with some comment like 'The wife is nice, but the husband is an awkward b*gg*r'!
Feb 9, 2023 09:50:14 #
keywest305 wrote:
My wife refuses to go to purchase a new car. She s... (show quote)
Surprise! Surprise!
When my son bought his Fit, that had installed $125 wheel locks - those things you can buy for $20 on Amazon. The dealer removed them.
Feb 9, 2023 11:06:10 #
jerryc41 wrote:
Believe it or not, this is actually legal in some ... (show quote)
This was clearly a Ponzi Scheme.
The dealer should have paid a multiple of the announced award and had his license to sell cars revoked until a more suitable (harsher) punishment could be found and applied.
There are good honest dealers that must make a profit to stay in business.
For those folks that do not have great negotiating skills, there are buying services available to the purchaser to safely obtain a fair and reasonable price.
Like any large purchase, the variables of credit rating, income, needs, etc. come into play.
In the end, I do my homework, get my Quackers all in a row by consulting with resources like Consumer Reports, Costco, etc., and soldier on.
Thanks for getting me stirred up this early Jerry, grin.
Best Wishes,
JimmyT Sends
Feb 9, 2023 11:12:44 #
NickelCigar
Loc: Lenexa, Kansas
I was in the car business for over ten years. Most customers came in with an attitude that we were all crooks. They would make offers that were thousands below the lowest price we could sell a car. I worked to get trust with my customers. I didn't care if I made a hundred dollars or five thousand dollars on a sale. I wanted a customer that was happy with their car and felt that they had received a fair deal. Referrals were the lifeblood of a sale. I finally got to the point that the only day I worked the floor was Saturday. I knew that I would have many sales just from referrals. All this because I was honest and treated the customer with respect. I never had to play all those games. As a result, I was Salesman of the year seven of those ten years and salesmanager for two years.
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