mortgageman
Well-known Member
- Joined
- Jun 30, 2005
- Messages
- 2,015
As Ellen (my wife) and I were just victimized by King Motor Co of Coconut Creek, I wanted to make sure that all of our friends and neighbors were aware of this (apparently quite common) scam.
About a month ago, Ellen and I purchased a new Hyundai Sonata from King Motor Co.
We were told we had financing at 8% and 84 months. We signed papers – including a bill of sale. Two days ago, we were called and told that the “financing did not go through, and the terms were being changed.” We had to come in and sign new papers or give the car back and get our trade in back. (It seems that our trade in hadn’t been sold yet). Stunned, I called my lawyer who had never heard of this.
When we went in to see the papers, three things had been changed (remember we had been driving the car for a month already, assuming it was “ours”). The term was decreased (assuming no prepayment penalty, this is bad for the consumer – a longer term is a free option), the rate had been decreased to 2.4% (this is obviously good), and the price had gone up by $500. The salesman tried to make it seem like I was foolish for “not understanding” why this was a better deal for us. Actually, he accused me of not being an “intellectual”. His point was that the sum of the payments over the new term was less than the sum over the old term. While true, it is not a better deal if I decide to pay off the balance next month. Effectively, the dealership added a prepayment penalty of $500 that declines over time.
I was more than willing to tell these bozos (that’s what us non-intellectuals call confidence men) to keep their car, but Ellen – who is more level headed – made me realize that time is money, and we really didn’t want to shop for another car all over again.
When I researched what had happened to us, I found these two websites:
http://www.lemonlaw.com/spotdelivery.html and http://www.consumeraffairs.com/automotive/spot_delivery.html
There are other people (mostly poor people with very bad credit – it seems that this is the real sub prime scandal) who really get screwed here. According to these websites, some people get their rate jacked up to 20%, after being told that they had very low rates.
Since moving to Florida, we have purchased three cars. This is the first time we have become a victim. Be very careful when you shop for a car – and don’t go to King Motor.
(Feel free to pass this on to whomever you like)
Gene Klein
About a month ago, Ellen and I purchased a new Hyundai Sonata from King Motor Co.
We were told we had financing at 8% and 84 months. We signed papers – including a bill of sale. Two days ago, we were called and told that the “financing did not go through, and the terms were being changed.” We had to come in and sign new papers or give the car back and get our trade in back. (It seems that our trade in hadn’t been sold yet). Stunned, I called my lawyer who had never heard of this.
When we went in to see the papers, three things had been changed (remember we had been driving the car for a month already, assuming it was “ours”). The term was decreased (assuming no prepayment penalty, this is bad for the consumer – a longer term is a free option), the rate had been decreased to 2.4% (this is obviously good), and the price had gone up by $500. The salesman tried to make it seem like I was foolish for “not understanding” why this was a better deal for us. Actually, he accused me of not being an “intellectual”. His point was that the sum of the payments over the new term was less than the sum over the old term. While true, it is not a better deal if I decide to pay off the balance next month. Effectively, the dealership added a prepayment penalty of $500 that declines over time.
I was more than willing to tell these bozos (that’s what us non-intellectuals call confidence men) to keep their car, but Ellen – who is more level headed – made me realize that time is money, and we really didn’t want to shop for another car all over again.
When I researched what had happened to us, I found these two websites:
http://www.lemonlaw.com/spotdelivery.html and http://www.consumeraffairs.com/automotive/spot_delivery.html
There are other people (mostly poor people with very bad credit – it seems that this is the real sub prime scandal) who really get screwed here. According to these websites, some people get their rate jacked up to 20%, after being told that they had very low rates.
Since moving to Florida, we have purchased three cars. This is the first time we have become a victim. Be very careful when you shop for a car – and don’t go to King Motor.
(Feel free to pass this on to whomever you like)
Gene Klein
