Troop Talk
If a deal sounds too good to be true, it probably is. Soldiers should keep that in mind when shopping for a new car or other products and services.
There have been recent reports of salespeople using misleading tactics to sell cars to Soldiers. Before shopping for a car, you should become familiar with the tactics scammers may try to use.
Crooked sellers will sometimes try to convince a hesitant buyer to purchase a vehicle with the promise of money for referrals. The price, interest rate or monthly payment may be too high, so the seller promises that the buyer will get paid for every person he or she refers to the dealership who actually purchases a car. That may convince a reluctant buyer into believing he or she can afford the payments. The promise is made outside of the contract and modifies the agreement after the fact. The buyer would also be encouraging someone else to buy a car without telling the person that he or she is receiving a benefit from the purchase.
Other schemes involved sellers who misrepresent the history or quality of a vehicle. The odometer, which shows the number of miles a car has been driven, can be changed to reflect a lower number because cars with fewer miles are worth more. The odometer reading should be recorded on the title every time a vehicle has changed hands, so a buyer should ask to see the title before agreeing to any purchase. Additionally, if a car has been in a wreck, the seller must inform the buyer.
Potential buyers can search for the sales history of a car using the vehicle identification number. If the car was sold multiple times by the same dealer or sold several times within a short period of time, beware: There could be more to this car than you know. Other deceitful business practices include a seller saying a product is original or new when it is not, or misrepresenting the quality of a product. A seller cannot misrepresent the rights of a warranty, lie about the reason for a price reduction or lie about the need for parts, repairs or prior repairs.
Misleading sales tactics are also illegal. In a “bait and switch,” a buyer is baited to a business by a tempting advertisement, but upon arriving, the product or deal is no longer available. Then a new product is substituted for the first, however the buyer cannot purchase the new product under the original advertised terms.
In another scenario called “low-balling,” after a deal has been agreed upon, the seller “realizes” the trade-in was overvalued and needs more money to close the deal. In a “yo-yo” scheme, a dealer pretends to offer a deal, locks the consumer into the deal, and then changes the deal. The seller tricks the buyer into believing he or she agreed to the terms and must go along with them. Both of these schemes involve changing the information after a contract has been signed.
Once a contract is signed, the deal cannot be altered. Finally, the Truth in Lending Act requires the seller to provide the contracts to a buyer before he or she purchases a vehicle and to provide quotes in a written form. That way the buyer can shop around for other deals and have an attorney review the contract.
Unfortunately, Team Bliss Soldiers have been taken in by illegal schemes from unscrupulous sellers, but knowing what to watch for can help you avoid becoming a victim. If you think a salesperson might be pulling one of the scams listed above, leave the dealership and don’t sign anything. If you have already signed a contract and believe you are a victim of any of the above-listed schemes, call the Legal Assistance Office at 568-6513 or 568-7141 and make an appointment to talk with an attorney.
Purchasing a vehicle can be a confusing experience with so many legal and financial papers to sign. The best way to make sure you’re not being taken advantage of is to ask for help before you purchase a new vehicle.
Maj. Gen. Howard B. Bromberg
Fort Bliss Commanding General