Deferred Down Payment Arrangements Can Be Illegal!

Has this happened to you?

  • Did you buy a car and give the dealer 2 or 3 payments towards the down payment?
  • Did the dealer draw up your contract showing one down payment instead of 2 or 3?
  • Were you turned down for financing with a low down payment?

Car dealers will often offer potential buyers a deferred down payment arrangement if they don’t have all of the money up front. This occurs when a dealership needs to show a higher amount than the buyer has on the sales contract to secure financing.

Call us if you want to:

  • Cancel your contract with your dealer because they lied to you.
  • Return your vehicle and cancel your contract because the payments are too high.
  • Get your money back because the dealer ripped you off.

Deferred Down Payment example:

deffered down payment exampleFor example, if the owed down payment is $2,500.00, but the buyer only has $2,000.00 available to offer, the dealership may just tell them to come back in a week or two with the additional $500.00. If this arrangement is not clearly marked on the sales contract, the dealership has committed fraud and can be sued for the offense.

Deferred down payments cause a domino effect that can be very costly to the consumers on there newly purchased vehicle after just a couple of months. Dealerships will falsely put down this higher down payment amount so that you can qualify for more financing, which often means higher monthly payments than you can afford. This often leads to the purchaser missing a few monthly payments because their financial situation doesn’t actually support the monthly car bill. Missing monthly payments will result in the car being repossessed. What started off seeming like a favor from the dealership being flexible with a deferred down payment or hold-check agreement, will actually cost you much more in the long run.

Not only is the dealership committing auto fraud against the purchaser, but they’re also committing fraud against the finance company. The difference in actual funds received versus the total deferred down payment amount effects taxes too. By misrepresenting your financial status to the finance company, they’re able to secure a larger loan, which could cost you thousands in interest over the life of the car loan.

If auto dealership willing to scam you once, then they probably won’t think about doing it twice. Dealerships that offer deferred downpayment agreements that aren’t properly noted on the sales contract often commit fraud in other ways as well. Forged signatures on documents, bait & switch tactics, and misrepresenting the condition of the vehicle are other ways the dealership may be committing auto fraud during the sales process. Don’t worry, we won’t make you do all the homework and research to determine if you have a case against the dealer.

Our auto dealer fraud attorney offer free case review consultations. We take the time to listen to your story and work with you to achieve your goals. If your car has mechanical issues or isn’t driving correctly, we may be able to help you return the vehicle and get your money back. If your car drives perfectly, but you’re stuck with high payments due to a deferred down payment, we’ll help you get compensation from the dealership.

Find Out How We Can Help

Call us now and find out if you have a case against the dealership for a deferred down payment violation. Our auto fraud attorneys will take the time to listen to your situation, and review your documents from the dealership. Consultations are 100% free, and we can quickly assess your situation once we have the information we need to determine if you have a case. Call us today.

Summary
Deferred Down Payment Arrangements Can Be Illegal!
Article Name
Deferred Down Payment Arrangements Can Be Illegal!
Description
Car dealers will often offer potential buyers a deferred down payment arrangement if they don’t have all of the money up front.
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Consumer Action Law Group
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Deferred Down Payment Arrangements Can Be Illegal!
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