A DRIVER had to return his car to the dealership 15 days after bringing it home.
Now, the former owner of the used Kia is suing the dealership after it allegedly sold his old car.
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Gilbert Rodriguez, who drove a 2011 Ford Focus and wanted a newer SUV, found a 2018 Kia Sorento at Chevrolet of Milford in Connecticut in September 2023, according to a action he took.
Rodriguez said he received a $500 credit for the old Ford and used it to buy the Kia.
He also gave $2,000 for the down payment on the car.
In the lawsuit, Rodriguez claims to have signed documents at the dealership hoping to finalize the payment contracts.
But 10 days into his ownership of the Kia, the driver said he received a call from a sales representative at the dealership.
They asked him to return the car because he was denied financing.
Rodriguez allegedly offered an additional $1,500 to add to the down payment on the car.
But the dealership refused to finance the vehicle, the lawsuit alleged.
The practice of allowing a temporary owner to drive off the lot before a dealership secures the contract from the bank is called “yo-yo financing,” according to Jalopnik.
FTV complained dealership practice in 2012, calling it “basic fraud.”
Yo-yo financing is used by some car dealerships where the buyer is led to believe that their car loan has been fully approved.
But after the sale, the dealership informs that the financing did not work out or the deadlines were changed.
Rodriguez also alleged in the suit that the financing issue left him out of $500.
He claimed the dealership refunded his initial $2,000 payment, but he had already sold the 2011 Focus.
The lawsuit was filed in May, several months after the alleged incident.
The US Sun contacted Chevrolet of Milford for comment on Rodriguez’s allegations.
The dealership did not immediately respond to the request.
Tips for dealerships
Here are some expert tips when buying a car from a dealership:
- 1. Set your price: Make sure you have calculated your monthly budget before going to the lot. You must include your car loan payment, insurance costs, fuel and regular maintenance.
- 2. Research: Make sure you know which cars you’re interested in testing before you get to the dealership.
- 3. Pre-approval: Secure financing before going to the dealership. Dealerships may offer a better interest rate if they are competing with an outside bank.
- 4. Test: Drive before making any payments. Buying a car will be worth thousands of dollars – drivers should ensure they like the car’s drivetrain, steering and comfort before driving it off the lot
- 5. Haggle: Drivers should always try to negotiate the price. There are so many good cars on the American market – buyers have a strong hand in negotiating prices.
Source: Kelley Blue Book
CAR RETURN PROBLEMS
Another driver said he had to return his Ford Bronco Sport after just a few days of owning it because of another contract issue.
Adam Sidoti purchased the nostalgic SUV in 2020, shortly after it was relaunched to the public.
But he said he received a call from the dealership asking for the car back.
“They wanted me to bring it by 3pm on Christmas Eve,” the driver complained.
Sidoti said the dealership gave him a hired “dummy” vehicle to stay in the parking lot.
Eventually, the company was able to find a solution for the driver.
This story originally appeared on The-sun.com read the full story
