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Don't be like me; read all the paperwork before you sign to buy a new car. 

These are the words of Jonathan Diaz (@jjdtk2), who has a warning for all new car buyers. I found his TikTok video while researching the Toyota RAV4. Jonathan says he has learned a valuable lesson, and he doesn't want anyone else to make the same mistake as he did. 

Jonathan says, "We have all made bad financial decisions, but this one here is my ridiculously stupid financial decision. So, last year, I bought this 2024 Toyota RAV4. There is nothing wrong with the car, and I absolutely love this car." 

"So why was this a stupid financial decision?" he asks.

"I am a traveling musician and needed more space because I carry a lot of gear. So, I went to the Toyota dealer where I bought my C-HR and talked to the same salesman."  

"This was my second time dealing with this Toyota dealer and salesman. He gave me a good deal on my Toyota C-HR the first time. So, I went in and said do whatever it takes to get a good deal for me on this 2024 Toyota RAV4 because I need extra room for my music equipment." 

"I asked him how much my payment would be, and he said a little more than you are paying now, which was $400 a month on my C-HR. So I thought it would be $500 or maybe $550. They didn't tell me my monthly payment would be almost $800 a month for the RAV4." 

It Gets Worse

"They didn't tell me about the credit card they were opening in my name for $1,500 to make the down payment in addition to the $5,000 from my trade. He says he didn't explain that I'm paying a 14% APR interest rate for 72 months," he says. 

Now, I'm paying $63,000 for this RAV4 because I trusted this salesman. 

"I also have to pay off the credit card with Comenity Capital Bank and sell some of my guitars to the music center to do so. I went into Comenity Bank to explain my situation, and they said they would reduce the balance to $1,400 if I could pay it off today. They said this had happened to customers from this Toyota dealer before."  

"However, I have no recourse now because the dealer included this information in the contract but did not disclose it to me. They showed me where I signed for the credit card in the contract." 

Jonathan Signed Without Reading the Sales Contract

"However, I know it's 100% my fault for not reviewing the paperwork. I trusted what they told me, and I was in a hurry. They had me in and out in less than an hour." 

"Now, I'm looking into refinancing the whole thing. I might research the best option. I would even be willing to give back the car if they would buy out my contract, which I know they won't." 

Johnathan concludes, "The moral of the story is to read all the contracts before signing anything. Review everything and ensure they explain it to you." 

Does Toyota Offer Credit Cards for Its Customers?

Yes, Toyota offers credit cards through Comenity Capital Bank. These cards include the Toyota Rewards Visa and the Toyota Credit Card. 

• The Toyota Rewards Visa offers points for purchases at Toyota dealerships, gas stations, restaurants, and entertainment venues. 
• Points can be redeemed for parts, accessories, service, and eligible Toyota vehicles.  
• The card's ongoing APR ranges from 18.24% to 32.24%, depending on a customer's credit score. 

Toyota Dealers Are Under the Gun To Sell More Vehicles

A recent report from Automotive News says Toyota USA's message to dealers is straightforward: the Japanese automaker will build more vehicles, and now dealers need to sell more.

Toyota brand head Dave Christ told Automotive News, "Our message for 2025 is very simple: It's build more and sell more."

It's crucial to be cautious when dealing with dealers. Some, like the one Johnathan dealt with, may do whatever it takes to sell more cars. When customers like Jonathan Diaz come in, they are like sharks, and they smell blood in the water. Stay vigilant and don't let your guard down. 

What Should a Customer Do If the Dealer Fails To Disclose Everything in the Contract?

Potelco Credit Union states, "If you feel that a car dealer has scammed you by failing to disclose important information on the contract before you signed, remember that you're not alone. There are steps you can take to address the issue and pursue justice." 

"Contact your state's Attorney General's office, file a complaint with the Federal Trade Commission (FTC), and report the issue to the Better Business Bureau (BBB). You may also need to consult with a lawyer to explore legal options depending on the severity of the undisclosed information and your state's laws." 

Key Steps To Take

• Gather evidence: Collect all documents related to the car purchase, including the contract, any communications with the dealer, and any evidence of undisclosed information (like vehicle history reports, photos, etc.). 
• Contact the dealership: Try to resolve the issue directly with the dealer by explaining what information was not disclosed and requesting a remedy, like contract renegotiation or cancellation. 
• File a complaint with the relevant agencies: State Attorney General: Most states have a consumer protection division within the Attorney General's office that can investigate and potentially take action against the dealer. 
• Federal Trade Commission (FTC): Report the dealer to the FTC if you believe the actions constitute federal consumer fraud. 
• Better Business Bureau (BBB): File a complaint with the BBB to document the issue and potentially alert other consumers. 

Consider legal action: If the dealership refuses to rectify the situation, consult with a lawyer to discuss potential legal options, like filing a lawsuit to rescind the contract or seek damages. 

Final Thoughts and Questions For Toyota Customers

Jonathan Diaz knows he should have read over the documents for the 2024 Toyota RAV4 he purchased before he signed them. You can't rush through the process when making a large purchase like a car. He gave the dealer and salesman too much control. 

However, some dealers, not just Toyota, will take advantage of a buyer to make a sale. They are under pressure to see cars, and that's what they do best. The buyer must go in prepared and amend with information on their trade-in and the car they are buying.

How About You?

Have you been burned by a dealer when buying a new car? If so, click the red Add New Comment link below and let us know.

Check out my Toyota RAV4 report titled; I Just Bought a 2024 Toyota RAV4 But I Should’ve Gone With the Leather Seats, It’s Like Ugly Carpet Versus Beautiful Hardwood Flooring, Now I’m Stuck With It

I am Denis Flierl, a Senior Torque News Reporter since 2012. My 30+ year tenure in the automotive industry, initially in a consulting role with every major car brand and later as a freelance journalist test-driving new vehicles, has equipped me with a wealth of knowledge. I specialize in reporting the latest automotive news and providing expert analysis on Subaru, which you'll find here, ensuring that you, as a reader, are always well-informed and up-to-date. Follow me on my X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.

Photo credit: Denis Flierl