QUESTION: The car dealer switched my financing to a lease without my permission, and falsified my income in the process. What can I do?

July 31, 2005

Hello Tony

I believe that the car dealer where I purchased a car may have falsified my income. Is there any way to check this theory and if it is true what can I do?

I went to purchase a new Grand Prix and trade in my 02 Dodge Ram quad cab 4x4, because I drive 113 miles round trip to work every day.

We set the deal up and I took delivery of the car believing I was buying the car. The next day the car dealership calls me and tells me financing didnt go through, so they stuck me in a lease (remember I drive a 113 miles a day) and raised my payment from $440 to $590!

When I asked for my truck back they said they already sold it and that I had to sign the lease because the financing already went through and it was a done deal.

The thing is, when I bought the truck a year ago I needed a co-signer, but this time my payment is $150 MORE and I dont need a co-signer now!

I don't believe that my income of $32,000 a year could qualify me for a $590 a month car payment, $1,200 a month house payment and $120 dollar a month credit card payment. My take home pay is only $2,000 a month. Does this seem odd to you?

Any help would be greatly appreciated,

Tim U.

Answer:

Hi Tim,

Tim, don't sign the lease papers. Just because they got the lease approved doesn't mean that the deal is done. You have to sign all the paperwork for the lease to be official.

This crap about them selling your trade could be a lie just to push you into the lease. Driving 113 miles a day will kill you in a lease. You'll end up owing a fortune in over-mileage fees.

They can't legally sell your trade until your deal is signed and finished.

If these idiots won't give you your trade back talk to the owner of the dealership. If not him then at least the General Manager. Tell them you are not going to stand for this crap, and if they don't give you your trade back you are going to file a complaint with the State Attorney General's Office and the Better Business Bureau too.

Don't play around, these guys sound like real slimeballs. You better get tough with them, or they will stick it to you.

As far as them falsifying you credit application, it's common practice for Finance Managers to raise your income on the application. I'm not condoning the practice, but very often the Finance Manager will "tweak" a credit application to increase the chances of the deal being approved.

Most customers don't know this goes on, but many of those who find out don't care, because they want the loan approved. The banks don't bother checking income, and have no clue they are being lied to.

The only way to know for sure is to contact the dealer loan center wherever they got you approved and ask them to look on the copy of the application they received from the dealer. Tell them you suspect fraud. If you're right, and the bank finds out then the dealer will be in big trouble.

Once you get your trade back get out of that car dealership and don't ever do business with them again. And spread the word to everyone you know too. Who knows what other kind of stuff they've pulled on customers.

Good luck...

All my very best...

Tony Iorio