I was overcharged $3,200 by the dealership after being hit with a ‘ghost fee’ – it’s happened to others, so we reacted

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DRIVERS are buying their vehicles on lease rather than new or used cars – now dealers are also finding ways to charge renters more.

With used car prices averaging close to $30,000 and a new car close to $50,000, many choose to lease and buy a car.

Keri Cromer noticed a 'dealer fee' of over $3,000 on her son's bill after purchasing his rental car

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Keri Cromer noticed a ‘dealer fee’ of over $3,000 on her son’s bill after purchasing his rental carCredit: Abc7ny
Her son, Michael, said the additional fee was the dealer's way of taking advantage of him, as he had never dealt with a dealership before.

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Her son, Michael, said the additional fee was the dealer’s way of taking advantage of him, as he had never dealt with a dealership before.Credit: Abc7ny
He wanted to buy the Nissan Sentra he had leased for residual value

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He wanted to buy the Nissan Sentra he had leased for residual valueCredit: Abc7ny
Anton Shipman noticed a 'processing fee' of over $3,000 and negotiated it to $1,100

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Anton Shipman noticed a ‘processing fee’ of over $3,000 and negotiated it to $1,100Credit: Abc7ny

Two years ago, buying a used car seemed like a financially wise choice, as many came with warranties, payments were cheaper, and cars less than 10 years old were much cheaper than buying new.

However, the cost of used cars has increased dramatically along with new cars.

ABC Affiliate WABC reported that the average cost of a used car is about $29,000, which is a 39% increase from last year.

The average cost of a new car is around $47,010, according to Kelley Blue Book, leaving many drivers to find a less expensive way to buy a car.

Read more about dealerships

As the car market becomes increasingly expensive for a wider range of buyers, many are leasing with the hope of purchasing the car at the end of the contract.

The idea of ​​leasing is that, after the contract expires, the lessee can purchase the vehicle at a lower cost.

Many lease contracts are attractive to drivers as the monthly payment tends to be lower than financing, although there are strict parameters, such as mileage restrictions per year of the contract.

In most circumstances, the price of the vehicle is non-negotiable as the lessee pays the “residual value” of the car.

But as fate would have it, many dealerships are finding ways to overcharge renters who buy their cars in hundreds or even thousands.

Anton Shipman and Keri Cromer are two pilots from New York who told stories about being overcharged at the end of their contract.

My husband died tragically but I can’t rent his car – the bank can’t help even though I’m his closest relative

Cromer’s son, Michael, was leasing a Nissan Sentra and they were eager to buy it when the lease was nearing the end.

Cromer didn’t realize it until he got home, but he discovered the vehicle’s price had somehow increased by $3,200.

The charge was listed as a “dealer charge” that was not listed on the invoice, and she immediately disputed it with the dealership.

Any fee that is not listed on the invoice is considered a “ghost fee.”

“He said I understand there is a discrepancy, I said it’s not really a discrepancy, it’s fraud,” she told WABC.

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

I think they are actually just trying to make easy money from uninformed people and for me it was the first time I had dealt with a car dealership.

Michael Cromer, check it out

Michael said he thinks the dealership attacked them.

“I think they’re actually just trying to make a quick buck off uninformed people, and for me, it was the first time I’d ever dealt with a car dealership,” he said.

Shipman said he noticed a $3,000 charge on his invoice disguised as a “processing fee.”

“He started at over $2,000 and then it went to $1,600, then it went to $1,000, all because I told him I was on the phone with the company,” he said.

He also attempted to dispute the extra charge and agreed to the reduced fee of $1,100.

He’s still upset that they got away with overcharging.

“At the time I was surrendering, but the war was not over,” he continued.

Expert car rental advice

Ray and Zach Shefska, the father-son duo that make up CarEdge, spoke with Sun Motors USA reporter Kristen Brown in an exclusive interview about their top tips before signing a new car lease.

Leasing a car may be a more viable option for some rather than financing with an auto loan.

Leasing a car for 24 to 36 months can be attractive to many because the monthly payments are typically lower than loan payments, although there are some restrictions, such as a mileage allowance.

At the end of the lease, people can purchase the vehicle at a reduced price or they can return it to the dealership and lease another car.

Before entering into a lease, Ray offered some important tips to consider, drawn from his 40 years of experience as a sales manager at several dealerships:

  1. Learn the interest part of the rent — or the “money factor” — to understand how much interest you’ll pay and how much that adds up to in total.
  2. Negotiate the sales price before discussing monthly payments – the cheaper the car’s sales price, the cheaper your payments will be.
  3. Accept the premise that you will always have to make a payment, so you can have a good car for a cheaper price or a smaller car for a higher price.

Read more here.

Shipman and Cromer contacted WABC reporters for help and quickly got to work.

After contacting the dealership Cromer worked with, the price was quickly reduced by $3,219 following an internal audit of his recent lease acquisitions.

They also formally apologized to them.

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

Shipman’s dealership also paid him $1,500 after they were contacted.

Both cases should serve as a warning to buyers to be careful and read the invoice to identify any charges that shouldn’t be there.



This story originally appeared on The-sun.com read the full story

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