If you had the chance to lower your car payment, would you take it? Probably. Who wouldn’t want to save some money and have a great car too?
The problem is that the remainder on your current auto loan is more than dealerships are telling you its worth. Enter the dealership who promises to pay off what you owe on your current vehicle regardless of how much it is.
Can you really trust that promise?
The dealership likely does not intend to pay out anything over the actual value of your vehicle. So, the rest of the loan ends up attached to your new auto loan. You may wonder at this point how you could have lower payments and still be paying for two vehicles. Well, the term of your new loan is probably extended to give you lower payments even though you are still paying on the negative equity, the amount of your prior loan left after trade-in value, along with the new loan.
Without realizing it, you will end up with more debt than you had when you walked into the dealership. How could this happen? Unfortunately, clever working in advertisements more than likely drew you in, and then it was just a matter of enticing you with a new car and the promise of lower payments. You are certainly not the first person to believe you got a deal, and you will probably not be the last.
Look at the wording in the advertisement
Auto dealerships use one or more of the following cleverly deceptive phrases in order to draw you and other Pennsylvania residents in:
- “We’ll give you NADA value for your current vehicle once we make a deal.”
- “We’ll pay off your current loan or lease no matter how much you owe.”
- “We’ll get you out of your current car and lower your payments.”
- “We’ll pay off your current car once we make a deal.”
- “We can get you out of your current lease.”
If you see any of these statements in an advertisement, be wary. If you owe more on your current vehicle than it is worth, you will end up paying the difference along with a new loan for the vehicle you purchase at the dealership.
Auto dealerships use a variety of deceptive practices in order to sell vehicles. If you believe you were scammed into making a purchase, you may have options. This is a specific niche in the law, so consulting with an attorney experienced in this area of law is essential.