Deferred car payment scams are one of the most common ways that the dealerships scam customers. By claiming that you paid a larger down payment than you actually did, they may be breaking the law, and you may be a victim. Deferred down payments are used so that the dealership can get you financed for a larger loan than what you actually qualify for. This has the potential to cost you thousands of extra dollars over the course of your car loan payback period.
There are some instances where deferred car payments are conducted legally too. If a dealership is up front and honest to the finance company that you will be providing the down payment in two or more installments, then they have done nothing wrong. More often however, the dealership just puts the full amount on the financing application forms, and says to the buyer “just come back with the other $1000 next week.” In this scenario, the deferred down payment is illegal and you may be able to sue the dealership for auto fraud.
What Happens When Car Dealer Defer a Car Payment?
Our auto fraud attorneys help consumers sue car dealers for illegal deferred car payment violations. If your dealership told you to come back to pay the 2nd half of your car down payment, but did not clearly mark this on your sales contract, these may be grounds for a defer car payment lawsuit. Even if you really like the car, and aren’t having any other issues, this violation could cost you thousands of dollars if you don’t sue the dealership now.
Can You Defer a Car Payment More Than You Qualify For?
Most deferring a car loan payment situations are presented as though the salesmen is just doing you a favor since you can come back later and make the rest of the down payment because you don’t have it now. While it may seem sincere, they certainly are not doing you any favors in the long run. While it may get you into the car you wanted to buy, it doesn’t mean that they’re getting you into a car you can afford. People have their reasons to defer a car payment, but that doesn’t mean they should accept every word that the dealer says.
What happens when you’re late on a payment because you “qualified” for higher payments due to the deferred car payment? The dealership can repossess the car without any prior notice. There’s no worse feeling than walking out to get in your car for the morning commute, and finding out that it was repossessed due to a missed car payment. So, by offered the illegal deferred car payment, the dealership knows that they will either make thousands more in financing fees, or be able to repossess the car and resell it for additional profit. Neither is a good situation for the consumer.
Talk to Our Los Angeles Car Attorneys for Free
Our auto fraud attorney will work to help you cancel the car contract, and get your money back from the dealership if you are a victim of an illegal deferred car payment scam. We offer free legal consultations to buyers that have recently purchased a used vehicle from a car that may have been scammed. Talk to our attorneys for defer car payment scam today for immediate help.