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Car Dealer Scams Customer with a $120,000 KIA

Here’s an actual sales contract showing how a new car dealer tried scamming a customer into paying twice the out-the-door selling price of a new KIA EV9…and what saved him.
Car Dealer Overcharges Customer So Much It Is Almost Unbelievable

Too often car shoppers take it on the chin with the belief that there really is not much anyone can do about the price they have to pay to buy a new car today.

This belief about the way the car dealerships do business today is true to some extent―mostly because dealerships rely on paying lobbyists to prevent consumer protection laws that are needed, from being enacted.

However, this does not mean that car shoppers should allow themselves to be taken advantage of with some of the most egregious (but perfectly legal) scams car dealers are using today: Chief of which are excessive (and hidden) add-ons and predatory financing.

Car Dealer Sales Contract Scam

In previous articles we have reported a number of scams that some car dealerships use to help move their inventory. Scams that typically involve MSRP window sticker scams and the good old dependable bait and switch scam―all of which cause you to spend more than you wanted to on a new car.

However, the two scams dealers rely on the most today are unnecessary add-on charges without alerting the shopper they are not part of the out-the-door selling price they quoted; and, telling the customer the car is affordable through their in-house or third party financing.

This was the focus by the host of a recent Car Help Corner YouTube channel episode where through an example of an actual sales sheet contract, the host shows how he caught a car dealer trying to get a shopper to sign a contract that was double of what the customer thought he would be paying.

The value of the video is that just like buying a used car requires a prepurchase inspection by a mechanic, if you have any questions about a car sales agreement that it pays to seek outside help to look at the sales agreement before signing the dotted line. Otherwise, you could very easily face financial ruin and no legal recourse to recoup your losses.

Follow along with the host in this real-life demonstration and consider applying his advice the next time you go to a dealership.

In the video you will discover:

  • The most important part to focus on with a car sales contract.
  • Which add-on fees are a normal part of a car sales contract.
  • What unnecessary add-on markups overinflated this car deal.
  • How the dealership outright lied to the customer about the markups.
  • Why current laws in the U.S. do not protect car shoppers from tied-selling scams.
  • The biggest reason why you might not get a rebate you are legally entitled to.
  • The longest period anyone should ever agree to for car financing.
  • Why you should avoid cars with negative equity. In this case the trade-in value of this model after one year is approximately only $50,000 (with normal mileage).
  • The best way to avoid financial ruin when faced with this type of con.
  • How this story has a happy conclusion with intervention by a professional car consultant.

Dealer Charges Customer $120,000 For A New Kia! This Needs to Stop

 

For additional articles about car dealership swindles, here are three selected articles for your consideration:

Timothy Boyer is an automotive reporter based in Cincinnati. Experienced with early car restorations, he regularly restores older vehicles with engine modifications for improved performance. Follow Tim on Twitter at @TimBoyerWrites  and Facebook for daily news and topics related to new and used cars and trucks.

COMING UP NEXT: 10 Cheap Cars That Consumer Reports Recommends for August 2024

Image source: Pixabay courtesy of jeffjacobs1990 - Pixabay

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