7 On Your Side: How To Avoid Car Rental Buyout “Scams”


NEW YORK (WABC) – With a shortage of new cars and used car prices reaching historic highs, it currently exceeds $ 29,000 for a used vehicle. That’s a whopping 39% increase.

This means that more people than ever are buying their rental cars instead of returning them.

7 On Your Side discovered a common deception after car owners said they had been scammed by the thousands by dealerships while purchasing your lease.

Anton Shipman and Keri Cromer have something expensive in common, both bought their cars at the end of their leases and were overcharged by their dealers.

“It can’t be fair, it just doesn’t stick,” Cromer said.

His son Michael’s Sentra lease was about to end. All he had to do was go to the dealership and process the paperwork.

“I really think they are just trying to make money easy with people who weren’t informed and for me it was my first time dealing with a car dealership,” said Michael Cromer.

Keri said she knew something was wrong when he brought the materials home. The lease buyout price was mysteriously raised to over $ 3,200, so Keri contested it with the concessionaire.

“He said I understand there was a gap, I said it wasn’t really a gap, it’s a scam,” she said.

Keri said the manager called it a dealer fee, a phantom fee that was not on the invoice.

“He said sometimes people notice it, sometimes they catch it, sometimes they don’t,” she said.

When purchasing a car rental, the price is not negotiable. It’s a fact written on the original rental agreement called “residual value”.

Shipman says his dealer also tried to exceed his buyout by more than $ 3,000, calling it a “processing fee.”

“He started at over $ 2,000, then it went up to $ 1,600, then it went to $ 1,000 just because I told him I was on the phone with the company,” a- he declared.

Eventually he settled in, being overcharged nearly $ 1,100.

“I was surrendering then, but the war was not over,” Shipman said.

The two clients fought their battles at 7 On Your Side.

We called dealer Keri for an explanation, who apologized, promising to do an internal audit of their recent lease buyouts, and gave the mother and son a new contract, reducing the cost by $ 3,219. .

“It’s justice, we got justice,” Keri Cromer said.

Shipman’s dealers never responded to 7 On Your Side, but instead quickly wrote him a check and he collected $ 1,500.

Customers saved a total of $ 4,298.

Remember that all charges billed must be shown on the invoice. Dealers cannot charge shadow processing or concession fees.

If you’ve recently made a redemption and the numbers don’t match, dispute it, and if that doesn’t work, contact 7 On Your Side.

Do you want to know how much you will have to pay when purchasing your lease? Check out this calculator:

https://www.nerdwallet.com/article/loans/auto-loans/auto-lease-buyout-calculator-how-much-to-buy-your-leased-vehicle

RELATED | January’s best bets: watch for offers, sales on these items

———-
SHARE YOUR STORY

Are you having a problem with a business that you can’t solve? If so, 7 On Your Side wants to help you!

Fill out the form below or send your questions, problems or article ideas by email by filling out the form below or by sending an email [email protected]. All emails MUST INCLUDE YOUR NAME AND CELL PHONE NUMBER. Without a phone number, 7 On Your Side will not be able to answer.

Copyright © 2022 WABC-TV. All rights reserved.

About Veronica Richards

Check Also

Cash, Loan and Savings Interest Rate Updates for May

At Lifehacker, we independently curate and write things we love and think you’ll love too. …