RDM Auto Sales SCAM Miramar, Florida
Chances are, if you financed your car through RDM Auto Sales, they had you to sign a "contingent delivery agreement" or "spot delivery agreement" or "bailment agreement" or some similar nonsense sounding document that was not explained and/or you did not understand. Spot delivery means delivery today, now, on the spot. RDM Auto Sales practically forces a car on you, and insists that you take the car home today. But they are not going to let you drive on the road until, buried in the paperwork, you sign their spot delivery agreement saying that if and when they call, you will come back with the car.
What do these "agreements" mean? Typically, they contain words to the effect that if RDM Auto Sales is not able to sell your financing contract to a lender on terms acceptable to RDM Auto Sales, then RDM Auto Sales gets to call off the deal and force you to return the car, and pay for the mileage you put on it. Plain English Translation: the bank did not offer them as much money as they wanted for the contract, and they have changed their mind. But wasn't it a done deal, you ask? The short answer is YES, but not in RDM Auto Sales's mind. But first, Did you know: usually when the bank takes the "assignment" of the contract, RDM Auto Sales gets money back from the bank? This is because the interest rate on the "buy rate" that the bank pays for the financing contract is far less than the "sell rate" the interest rate RDM Auto Sales gave you. The yield spread is often as much as 2% percentage points or more. Well, if you thought RDM Auto Sales was shopping the banks to get you the best deal on financing, you would be wrong. They are often shopping to see which bank will give them the biggest payback.
Of course, the "spot delivery agreement" just creates the opening for RDM Auto Sales to ask for more money. For example, they might say: "Your financing was not approved. We need you to either give us another $1,000 as a down payment, or else you are going to have to turn the car in." Or, they will say: "The financing fell through. We need you to come in and sign another contract." They pull you back into RDM Auto Sales office almost as fast as they threw you out in that new car that they insisted that you drive off the lot today in the "Spot Delivery."
But wait, you would say (didn't you already have a deal?) Not so, says RDM Auto Sales -- they changed their mind. Well, do you think that YOU, the consumer, could change your mind? Do you think you could just call them up and say: "I think I paid too much for this car, so either you will have to give me $1,000 back, or else I am bringing the car in and unwinding the deal?" Well, faster than you can say "Yo-Yo Sale" they would remind you that right on the face of the contract it says that there is NO COOLING OFF PERIOD.
2 Updates & Rebuttals
Ronny g
North hollywood,California,
USA
Correct, it's not unusual..
#3Consumer Comment
Sun, October 03, 2010
...for the dealer to have you sign for the car and financing and the customer is happy with the terms and leaves believing it is a done deal...
..only to be notified at a future time that the financing was not approved and a larger down payment and/or a higher monthly payment is required. It happened to me...once..and that was enough.
If the dealer did this without informing the buyer they were taking a spot delivery home or explaining it CLEARLY,..then the best course of action is to throw the keys on the dealers desk and say this..just like if you were on the game show..."NO DEAL Howie".
If you do that,you have turned the table and will "force" the dealer to make good on the agreement or find a way to get terms that YOU can deal with. If you cave..then the dealer wins and YOU get stuck with a vehicle you can not afford, or do not really want. The dealer does not care if you can not afford it or end up with a vehicle you hate..they only want to move vehicles.
I do agree that too many complaints are lodged where the buyer claims the dealer "forced" then to sign something. I suggest the consumers who claim this look up the word "force" in the dictionary.
What the dealers are doing in conning, lying, persuading, manipulating, pressuring, misleading and at times duress (these are all car dealer sales techniques 101)...but unless someone physically grabs your hand and signs anything, or has a weapon to your head..the implication of "force" has no real merit in the complaint, nor would it stand up in any court of law.
But..lets not forget forgery. The dealers have been known to forge documentation as well as signatures..and this is a legitimate complaint and can get them into big big trouble. Not always a bad idea to review all documents carefully. Your copies AND theirs.
Jim
Orlando,Florida,
USA
Nothing Unusual-Still Protect Yourself!!!
#3Consumer Comment
Sun, October 03, 2010
There's nothing unusual about anything you've said. Most, if not all of what you've detailed here is standard operating procedure at most dealerships.
However...this does NOT negate the fact a consumer needs to be smart and to take steps to protect themselves from scams. As a free individual in a free country, the dealership has no power over you. This mentality that "the dealer forced me..." is pure BS. You are the customer. The dealer needs you...you don't need them!
How do you beat the spot delivery scam? You either arrange your own financing before you get to the dealership or you do not leave with the new car until and unless you can prove and verify by your own efforts financing has been arranged by the dealership. You do this by asking the F. and I. guy "who is financing this purchase and what is the account number?" You then contact that lender yourself and VERFIY the information.
There is nothing illegal, immoral or unethical about the dealer making money on the financing. If your doctor gives you a shot, do you think the medicine is being sold to you "at cost"?
The Sleazy American Car Business is what it is. The average consumer has the brains to protect themselves from the scams but the average consumer does not use their brain when entering a car transaction, especially when they walk thru the doors with the "I just have to have that car" mentality!