Financing An Automobile Today!
Even Small Mistakes Can Be Costly
Retail auto consumers are purchasing automobiles at a blazing pace. Over 16 million new vehicles will have been sold in 2015. The forecast for 2016 is for north of 17 million new car transactions to happen. This does not account for the more than 22 million used car sales that will take place within each of those years.
The most complicated part of the automotive experience is the financing of the chosen vehicle. Roughly seventy-five percent of the automotive transactions involve a loan either directly from the lending source or at the dealerships.
Automobiles are the most common non-financial assets held by American families. In most cases, owning and driving a vehicle is not merely a luxury, but a prerequisite to opportunity. Despite such high importance in our communities, buying and financing a vehicle remains a challenging task for consumers with several hidden abuses along the way.
At many dealerships predatory practices in auto financing force consumers to struggle not only for a competitive and affordable car loan, but for a fair and honest one. Finding a good deal is often not based on the quality of the car or the creditworthiness of the consumer, but rather the consumer’s ability to survive a financial shell game with one of the largest investments most people will ever make. Some known abuses include: Auto loan markups: Also known as dealer reserves, auto loan markups involve kickbacks from third-party lenders to auto dealers for steering car buyers into loans with subjectively higher interest rates. This practice alone adds $25.8 billion in hidden interest over the lives of many car loans. Yo-Yo sales: Also known as spot deliveries or conditional sales, Yo-yo sales are deals where the financing is not finalized until after the consumer has already taken the new vehicle home from the dealership. The sale becomes abusive when the dealer calls the consumer back to the lot to sign a new loan with a higher interest rate or other abusive charges. Loan packing: The practice by which dealers add various types of aftermarket, “add-on” products that are usually unnecessary and overpriced in order to increase the price of the vehicle or the amount financed. “Buy Here, Pay Here” dealerships: These dealers typically finance used auto loans in-house to consumers with no or poor credit histories. The average APR is much higher than a bank or credit union loan. These dealers use their higher default and repossession rates to operate much like payday lenders; churning the same used vehicle several times as the basis for their abusive business model.
The retail automotive installment contract is a confusing and complicated financial instrument. Very few retail auto consumers are schooled in contract law. Many don’t understand the terms of the contract to their full extent. Mistakes are made and already cashed out way before the consumer realizes that they have been conned. A small sum mistake such as fifty dollars or less can end up costing the consumer hundreds of dollars over the life of the loan. Larger amounts can cost thousands.
The Consumer Financial Protection Bureau was formed in late 2012 to create a line of protection for consumers in their financial dealings with banks and credit unions and various other monetary institutes. Although the CFPB has made strides in protecting retail auto consumers by cracking down on the lending institutions that provide these funds through the dealers the predatory practices still prevail.
That’s where Car Concerns Consulting comes to the rescue. Not constrained by the rules and regulations Car Concerns Consulting can go directly to the source fraud that is in over 90% of the Retail and advice the affected consumer on the actions that one can take.
We have over 25 years of new car dealership experience and have searched and examined retail automotive installment contracts line by line before putting them in transit to the various lenders that serviced our consumer loans We know the retail automotive installment contract paragraph by paragraph, word for word.
Auto consumers are hardly aware of the hidden charges that are in their automotive retail installment contracts. Every conceivable contract fraud and trick has come across our desk.
When Car Concerns Consulting searches your retail automotive service contract you can rest assured that all the fat is out. We will share a complete report on the state of your retail automotive installment contract.
Contact Car Concerns Consulting: Harry@CarConcerns.com or USA TOLL-FREE: 1–855-CAR-CONCERNS (1–855–227–2662)
Our fee is $299 per contract.