Beware of the Auto Dealership Tactic of 'Yo-Yo'ing' Customers
It’s 2023 so you’d think auto dealers would have exhausted the ways they could screw over consumers. Think again.
Here’s a head-shakingly unbelievable (yet completely believable)?investigation from NPR?detailing how some car dealers will "arrange financing" for consumers that "falls through" after the consumer takes home their new car. They are forced to return to the dealership to sign new loan paperwork (with significantly higher interest rates), and maybe even bring more cash to the table. If they don’t, the new car is repossessed or reported as stolen.
One particularly horrifying story occurred in my backyard of Orlando, where an unfortunate couple not only had this happen to them, but when they refused to return the car the dealership had it repossessed. Then they discovered the dealership had ALREADY SOLD their trade-in!
Oh yeah, and the dealership never paid off that trade-in either, so the couple was responsible for car payments on a vehicle they no longer possessed. (They sued the dealership and won a couple hundred grand, but it took more than a year to resolve.)
Another story told of a buyer in Cleveland who was pulled over by police and arrested for stealing his car.
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Obviously, this bullshit doesn’t happen at every dealership, but it happens enough that dozens of states are changing laws to protect consumers. In the meantime, you can step in and help protect your members.
Share this story with your members with a simple message:?Beware the Yo-Yo! Secure financing for your new vehicle from your credit union before you even step on the dealership lot!
Not coincidentally, this is why I am a huge fan of concierge services like?Auto Advisors, which has relationships throughout the southeast with dozens of credit unions and hundreds of reputable dealerships. The Advisor stands side by side with your member, protecting them from shenanigans like this. If you’re outside the Auto Advisor service area, find a similar program in your market.
About Jim Kasch
Always with an eye toward the future, Jim Kasch has had success as a speaker, consultant, and CEO, urging Credit Union leaders across the country to thrive by relating and serving unique members. In 2020, he launched the Buy Local Spend Local Program, a turnkey, regional program that connects credit unions and its members to locally-owned businesses in their community, encouraging them to not only buy local, but to also spend local by paying with their credit union’s debit or credit card for purchases. Learn more at buylocalspendlocal.com
Credit Union Professional
2 年I couldn't agree more, Jim. Let's remember though that most car dealer are "somewhat" reputable. Okay, maybe "somewhat" is a bit of a stretch. It's the few that make a bad name for the entire industry. Not all dealerships are out to rip off consumers. As lenders, especially credit union lenders, the ball falls in our court to educate our members whenever and however possible. In this day and age, and in our "hurry up" lifestyles that can be difficult. And, yes Bill Goldberg, Partnering with vendors that know how to navigate that landscape, talk the talk, can be most beneficial.
Another reason to use Auto Advisors! Couldn’t resist!