The Cash Customer vs. the Credit Customer

“If we raise the price of the car the bank will be happy and give you a lower interest rate because of your prior bankruptcy… and your payments will go down.”

I know most of you would not believe this, but I just got off the phone with a new client. According to the client , an Infiniti dealer near Fairfield beat him up (mentally) because of his credit score and prior bankruptcy and increased the price of the car $2,000.00 over the sticker price on a used car.

In this scenario the only way to make the monthly payment drop while increasing the price of the car is to lengthen the term (say 60 months to 72 months). Or, ask for a larger down payment, but that is not what happened here.

So, what the dealer did in effect, (smell any FRAUD?), is to charge a credit customer more than they would have charged a cash Customer. They also charged him for a service contract using the same logic (lie).

The Rule: A dealer may not charge a credit customer more for a vehicle than they would a customer paying cash. This is illegal and violates several California statutes including the Vehicle Code. Louis A. Liberty Liberty & Associates, a PLC

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