You are on the verge of making a big decision; signing on for several years of payments for that used car. Hey, as long as you’re spending this much money wouldn’t it be wise to spend just a bit more and get a “Certified Vehicle?”
The implication is that certified vehicles are the cream of the crop, fully inspected, and extra reliable, but are they? Certified is not a legal phrase it is a marketing technique. Some certified programs might actually require the dealer to have a mechanic do a 100 point inspection, others may require little or nothing. Certified vehicles are sold as being extra reliable and fully inspected and; therefore, the buyer is charged more money for them.
A client of this firm bought a vehicle that was said to have undergone a 108-point inspection by a certified factory mechanic. The advertisement said the consumer could “buy with confidence.” After receiving these assurances the buyer signed a “no warranty” sales agreement thinking that while there was no warranty the vehicle had been thoroughly inspected and was good to go. Literally, on the way home from the dealership the car began experiencing mechanical issues that turned out to require significant sums of money to repair.
A shady dealer can simply stick a certified sticker on a car and charge more for it. Before paying inflated prices to ask what “Certified” means on that lot. Can you see the inspection sheet? Can you talk to the mechanic or person who certified the car? If you are not satisfied with the answers, find another dealer who provides better information.
If a vehicle is sold as having been inspected and certified, but later you find out none of this is true and there are actually known problems with the car you may have been deceived or cheated. You have a claim under the Texas Deceptive Trade Practices Act.
The Law Office of Julie Johnson is dedicated to the protection of consumer rights. This blog is not intended to be specific legal advice; rather each situation must be reviewed to determine the rights and duties that may be presented by each unique set of circumstances. If you believe you have been victimized through questionable dealer practices please feel free to contact us at http://juliejohnsonlaw.com.
You just left the dealership. Your favorite compact disc is playing, the top is down and you’re feeling great in your new shiny red ragtop. You secretly congratulate yourself on the sweet deal you struck with the dealer. You are looking forward to looking at the documents once they are delivered to you as promised.
A week later the mail comes and in it is a package of documents from the dealer. You open the letter and start to review the documents. “I didn’t agree with that. The amount I borrowed is not right, I didn’t agree to that interest rate, I didn’t agree to that long of a loan.”
Under Texas law when there is an installment loan agreement for a car the dealership must dealership disclose the terms of the final deal in writing before the deal is finalized. The terms that must be disclosed include the amount financed, the interest rate, the length of the loan, and several other items such as the lender. Depending on the circumstances you may have a right to remedies under the law.
As always, the best advice is to obtain a copy of the documents before you agree to anything. Review the documents; ask questions if you are unsure about anything.
The Law Office of Julie Johnson is dedicated to the protection of consumer rights. If you have been victimized through questionable dealer practices please feel free to contact us form.
It is a dark and stormy night. The wet north wind is blurring your vision. The collar of your jacket won’t keep the rain out for long so you begin to jog to your car. “My car is gone! Where is it? Has it been stolen? Did I miss a payment?”
Life can be uncertain, unexpected layoffs, emergency medical bills, and any number of other occurrences can strain your already tight budget. If you miss a car payment the lienholder can repossess your vehicle. If you have missed a payment the best course to follow is to contact the lender and explain your situation so that an agreement can be worked out. If you have a good record of payments and no other issues the lender may let you make a late payment or enter into some other arrangement.
If your car is repossessed you have rights under the law. Generally, in Texas, a default occurs if you don’t make your car payment. Once this default occurs the lender has the right to take possession of the car. The lender may repossess the car without involving the courts only if this can be done without a breach of the peace. This is typically why repossessions are done at night or while the buyer is not around.
Once the car has been repossessed, and before the lender has disposed of the car, the buyer has a right to “redeem” it. The buyer can obtain the repossessed car by paying the entire loan balance, repossession expenses, and reasonable legal fees. The lender must advise you when and where the vehicle will be auctioned off. Appropriate notice must be given to you. There are rules as to how a sale must be conducted, that is, the sale must be reasonable.
If the car is sold and does not bring enough money to pay off the debt plus the expenses of repossessing it you could be liable for the difference even though you now have no vehicle. An accounting of the transaction must be given to you showing what the car sold for and the expenses involved. If the car is sold and the price more than covers the debt and expenses the remainder must be made available to the buyer
The Law Office of Julie Johnson is dedicated to the protection of consumer rights. This blog is not intended to be specific legal advice; rather each situation must be reviewed to determine the rights and duties that may be presented by each unique set of circumstances. If you believe you have been victimized through questionable dealer practices please contact us at www.JulieJohnsonLaw.com.
Often when buyers have made the decision to buy a new car they begin to think with their emotions and become easy prey for unscrupulous car dealers. A consumer in this position may fall victim to a practice known as “padding” or “packing.” A dealer may quote an unnecessarily high monthly payment. If the buyer agrees with it, the shady dealer will go back and add extras like fabric protection, alarm systems, diamond ultra coat paint armor, unwanted GAP insurance, or whatever he can come up with. After the price of these often overpriced, high-profit items are added into the amount financed for the car itself the monthly payment conveniently adds up to the previously quoted amount. Car dealers who engage in these practices without full disclosure to the customer engage in fraud.
The buyer may never be told these optional items were added or may be told they are “free” with the purchase. The bottom line is that these items are often added to increase the profit margin for the dealer and not to benefit the buyer. The buyer may actually want some of the items, but should always have the option of deciding for himself and should not be deceived about the price of the extras. If you notice extra items that you don’t want to ask questions, or just refuse to buy the vehicle with them. If the dealer will not accommodate you take your business elsewhere.
The Law Office of Julie Johnson is dedicated to the protection of consumer rights. If you have been victimized through questionable dealer practices please feel free to contact us form.