4 ILLEGAL THINGS CAR DEALERS DO… and YOU’LL NEVER KNOW IT Kevin Hunter

Four illegal things car dealers do and most often get away with it. Most car buyers think dealers are just playing games. They think it's negotiation, maybe strategy, just part of the process. But here's the truth. Some of what happens in dealerships aren't just games. It crosses over into illegal activity. And it happens every single day somewhere in this country. And most buyers never even realize it. And that's the key. Because if you don't recognize it, you definitely can't stop it. Now let's be clear right up front. Not every dealer does these things. There are better dealers out there and we recognize that. But enough do this that we thought you needed to know exactly what to look for. Because when this stuff happens, you're the one who pays for it. At number one, the bait and switch. Let's start with one almost everybody has experienced at some time. You see a vehicle on a dealer's website. Looks like a great price. Seems like a great deal. You call. Is it available, you ask? Yes, they say. Come on in. So you drive down there. Maybe 30 minutes. Maybe an hour. Maybe even four hours. And what happens? Oh, that one just sold, they say. But we have another one right here. And suddenly you're being walked over to a more expensive vehicle. That's not an accident. That's called bait and switch. And when that's used to mislead you into coming in, that can be illegal. Here's another version people miss. You see a price online. You show up and suddenly there's a protection package. There's a reconditioning fee. There's a market adjustment. There's dealer-installed accessories. And none of it detailed on the advertised price. And the price you thought you were getting? Well, it's gone. Now look, prices can change for legitimate reasons. But if the original price was used to pull you in knowing that it wasn't real, that's where it crosses the line. And here's the part that matters most. You've already driven there. You already invested time. Now they're counting on you being unwilling to leave because you do not want to have to start over. All right, at number two, dodging written OTD pricing. Now let's talk about OTD pricing here. You ask a dealer for a full out-the-door price in writing. And what do you hear? We don't give that over email, they say. You need to come in is another common statement. Or we'll go over everything when you get here. That is not random. That is control. Because once you're sitting at that desk, everything changes. When you're in the showroom, pressure increases. Time pressure builds. Decisions get rushed. And here's the issue. If a dealer is advertising or quoting pricing, it must be accurate and not misleading. If they're talking numbers but refusing to put them in writing, that's where things can start to cross over the legal lines. But forget the legal side for just a second here. Let's talk strategy. If the deal is real, why can't you see it before you get there? The answer is simple. Because the deal changes once you arrive. All right, sitting at number three, mandatory add-ons. This one costs buyers thousands. You sit down, they show you the numbers, and you hear, this vehicle already has protection package on it. And this other package is included. We can't remove that. Let's be clear. Products like extended warranties, gap insurance, paint protection, bin etching, tire and wheel packages, they are all optional. Optional, not required. But here's how it gets twisted. They don't always say required. They'll say, it's already installed. Or it comes with the vehicle. That's just how we sell them. And now psychologically, you feel stuck. Like you don't have a choice. And that is the game. And when those products are misrepresented as required, that's where it becomes deceptive. And yes, regulators have taken action against dealers for exactly this problem. At number four, deposit games. So let's talk about this because I get a lot of questions about this on our website. Because this is where people get nervous, and rightfully so. You find a car, you leave a deposit to hold it until you can get there. Then something changes. Maybe the numbers change. Maybe the vehicle isn't what you expected. Maybe you just decide not to move forward. And the dealer says, that deposit is non-refundable. Now here's the truth. Deposits are governed by the agreement you signed. So yes, sometimes deposits can be non-refundable. But if the terms are misrepresented, the vehicle isn't what was agreed, or the deal changed after the fact, keeping that deposit can cross into legal trouble. And in every case that we know about, the dealer lost and had to return the deposit. And most people don't think to challenge it, because it feels uncomfortable or confrontational. And because it's easier to walk away and lose the money. But understanding what's happening, you're being conditioned to accept this. As a bonus, I want to share a situation I was personally involved in. Our viewer Lawrence called me to say he had signed an absolutely ridiculous Kia lease and wanted out. The Kia lease was a thousand bucks a month, believe it or not. So I started to investigate. As it turns out, Lawrence signed out on his lease on a Sunday. It was now Monday when we were talking. The dealer had him sign all of his documents, but sent him home without any of those signed documents. On a lease, this action violated two federal laws, the CLA, the Consumer Leasing Act, and TILA, Truth in Lending Act. Lawrence went to the dealer on Monday and put me on the speakerphone with the sales manager. When I informed the manager what they had done, the manager says to me, Sir, I have never violated a single law selling a car. I said back, Well, you violated two federal laws in one transaction and didn't know about either law. So how could you ever know if you have violated laws if you never studied them? He asked, So what would you like me to do now? I said, The customer wants the deal rescinded. Lawrence was standing right there and he agreed with an enthusiastic yes. The manager said, Consider it done. Lawrence called me after he left the dealership and he says, Kevin, you scared the crap out of that guy. It was a happy ending, but I share that because dealers sometimes pull these illegal stunts and simply don't have a clue. Just like this guy didn't know. For the most part, these aren't just dealer tricks. They're patterns that have been called out over and over again. And they keep happening for one simple reason. Buyers don't know or they just don't push back. Now you do know. And in part two, we're going even deeper. We're talking about falsified paperwork, loan manipulation, and one that is straight up fraud. So make sure you don't miss it. Follow the homework, guys, so dealers can't rip you off.