Cash For Clunkers Leads To Dealer Scams

In the wake of the recent government sponsored “Cash for Clunkers” program, it has been reported that some car dealerships are improperly attempting to extract additional money from customers who have purchased new cars under this program.

Some examples include dealers claiming that: (i) the Cash for Clunkers paperwork was not approved and therefore the customer needs to pay the unpaid government program payment; (ii) the customers financing was not approved and the customer now needs to return and enter into a more expensive financing arrangement, (iii) the customer must buy post-sale extras or extended service contracts; and (iv) several other improper or coercive requirements being imposed on customers.

If you are a consumer who purchased a new car under the Cash for Clunkers program and are now being contacted by the car dealer seeking additional payments, please contact us to discuss your legal options.

Automobile Dealership Window Etching Scam

Have you recently purchased a new car from a dealership and was surprised to find that dealers are still attempting to force new car buyers to hand over their hard earned money for window etching?

Window etching is when the dealer “scratches” the vehicle glass with part of the car’s VIN number, for which the dealership will attempt to charge you anywhere from $150 to $500, or more.  If you ask about it (many people do not), the dealership will tell you it’s a major theft deterrent because a potential car thief will have to break all of the car’s windows to avoid detection.  In fact, car thieves will steal your car if they are inclined to do so whether or not there are some tiny numbers scratched on the windows.  Even assuming there is some theft deterrent, the markup being charged is unconscionable.  In fact, window etching is almost pure profit for the dealership.  It costs the dealer about $14 or less, and “do it yourself” etching kits are available on the Internet for $15 to $20.  Reportedly dealership marketing plans provide for $900,000 annual profits from etching.

The dealership finance manager who may attempt this scam in most cases will not even bother to show a car purchaser the written terms of the window etch deal, (which is essentially an insurance policy).  Admittedly, there is a small discount off of your car insurance if your car is etched -- approximately a 5% discount off of the comprehensive coverage.  For example, if your comprehensive premium is $230 per year, you would save $12 annually if you paid just $157 for the window etching.  After owning the car for 13 years (not likely), you would finally break even.  Many dealers, on the other hand, charge much, much more than $157 for window etching.

Window etching is an auto dealer scam consumers are likely to encounter when purchasing a car.  If you have been deceived by a car dealer’s window etching scam, please contact us to discuss your legal options.