You’ve probably seen ads that claim that a car dealer will pay off your loan regardless of what you may owe. In a sense this is true, however, in some cases, what happens is that the remaining balance of what you owe is rolled into the new loan. As a result, you’re still paying on the previous loan while now paying on your newly purchased vehicle as well.
The FTC took action regarding offers by five dealerships: Billion Auto, Key Hyundai, Hyundai of Milford, Frank Myers AutoMaxx, and Ramey Motors.
For more on this FTC action, you may visit http://www.ftc.gov/opa/2012/03/autoloans.shtm and http://business.ftc.gov/blog/2012/03/ftc-auto-dealers-back-your-ad-claims.
The BBB suggests you read all terms and conditions of any offer regarding vehicle financing. Make sure you understand all aspects of any loan, insurance, and credit terms for purchase and leasing. For more information you can trust, visit www.evansville.bbb.org.
Related Posts:
What Does It Mean to be “Yo-Yoed” Back to a Car Dealership?
Read Here Before You Purchase a Car Online. (Fraud Alert!)
“As Is” Means Just That When Purchasing a Used Car
