ABC’s “I-Caught” Puts New Jersey Dealer “On The Spot.”
Former football star Brad Benson is known for his light-hearted radio and television commercials, however he may have gotten a bit more publicity than he bargained for when his dealership was featured last night on the ABC program “I-Caught.” You can watch the video from YouTube here:
The video does not tell the whole story. A daughter enters Brad Benson Hyundai and returns her mother’s car, citing the fact that the dealership changed the interest rate and caused her mother significant aggravation. As she is leaving the dealership, she warns prospective customers. She records the transaction as proof that they did return the car. The salesman seems caught offguard and completely uninformed about the situation, essentially looking like a deer in headlights. She submits the video to a wonderful website, the consumerist (I love their tag-line: Shoppers Bite Back) and the story caught the attention of ABC producers.
Not one to back down from a fight (He once challenged Rosie O’ Donnell to a mud wrestling fight in one of his ads), Mr. Benson put up his own well-produced video rebuttal:
In his video, he gives a whole other side to this story. Essentially, he is leaving it to the public to serve as judge and jury and judging from the comments, it appears most YouTube viewers are siding with the protective daughter.
While it would be difficult to put together the pieces of this puzzle without reviewing the paperwork, there are a few rules of thumb everyone needs to be made aware of:
1) Once you have a signed sales contract, it is binding and both parties must uphold the terms of the contract. That means that if the dealer guarantees a certain interest rate, they must secure the financing. It also means that customer must agree to buy or lease the car at the stated cost and interest rate.
2) It is therefore imperative that before you sign on the dotted line, you read through the terms of the contract and make sure you understand them. If you have questions, ask! Do not put down false information about yourself, even if the dealer encourages it. If you have to be dishonest to get a certain deal, it is not worth it and we have seen scenarios where dealers use this to pull the rug out from some customers.
3) If you have a signed retail sales agreement, and the dealer calls you to tell you that they can’t secure financing and you have to resign the contract for a higher interest rate/and or cost OR you need a co-signer, STOP! You could be the victim of a dealer fraud scam known as SPOT DELIVERY WITH YO-YO. It is illegal for a dealer to repossess a car if there is a binding sales agreement If you find yourself in this situation, contact us.
4) On the other side of the coin, you can not just return a car. A car is not a shirt or a book. Once you sign a binding agreement, you are responsible for upholding the terms of that agreement. If you sign a blank contract, you are essentially singing a blank check. Your signature is your most valuable possession. Use it wisely. If your car is giving you troubles, contact us or another consumer attorney, but do not just drop off the car. This will be viewed as a voluntary repossession. The dealer can sell the car on the auction block and sue you for the difference between what they received and what you owe them. Plus, your credit will be ruined. PLEASE DO NOT TAKE THE LAW IN YOUR OWN HANDS. This could backfire on you big time.
It remains to be seen how this case will carry out. I am sure this is not the last we have heard regarding this. Stay tuned…..
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October 4th, 2007 at 7:56 am
With a spot delivery/yo you finance scam, If the contract was in two parties name and only one party signed. Can the car be returned? By law doesn’t a consumer have a right to return a vehicle in New Jersey state if the terms of the contract changed? Do consumers have 3 days to return a vehicle? Can a consumer sue a dealership for an attempt scam like the one above?
October 8th, 2007 at 4:35 pm
The contract should not change and a contract in two parties’ names should be signed by both parties.
In reference to the three-day rule, there is no such thing. It is a common misconception.
Spot delivery is against the law and you can take legal action if necessary. Visit http://www.lemonlaw.com/spotdelivery.html for more info.
February 12th, 2008 at 9:36 am
I went through the SAME thing at this SAME dealership! I went to purchase a vehicle at Brad Benson Mitsubishi Huyndai. The dealership allowed me to take the car before financing was secured and assured me that financing would be within a certain bracket based on my credit history. When the dealership could not secure financing within the rate that they had promised, I told them I was going to return the car. The dealership told me that I signed a contract that was a binding agreement and I needed to come to the dealership to sign additional papers. They stated that the car was owned by me and could not be returned. Even though no deposit had been put down and NO FINANCING SECURED. Lucky I new that I had not signed an actual contract and returned the car anyway. The dealership told me that I would be receiving bills in the mail for the financing of the vehicle, this was 5 months ago——I have yet to receive a bill.
February 27th, 2008 at 10:26 am
I am hopeful that you are keeping a file on this situation, because it could come back to haunt you. If you find that the dealer all of a sudden comes back, please contact me at 800-536-6652 ext. 131.
Michael Sacks
Director, Client Services
Kimmel and Silverman
August 4th, 2008 at 2:04 am
I believe spot delivery has happened to me. I went to Kia in Burlington and was only there to drop my mother off to get a car. We were there for hours, her credit was not good, neither is mine. The dealer asked me to cosign, i felt unsure and pressured by the dealer and my mother and let them run my info. My credit score wasn’t great and some how I was able to be the co-signer so i thought. My mother was told she couldn’t get a preowned car with the credit and could only get a new kia, which didn’t make sense. I tried to talk her out of it but she insisted she needed a car and i felt pressured to help. The dealer instructed me to put an old address on the form as my current one, as i had just moved, also at signing, the information was changed and i was presented as the owner instead of the co-signer, we were told that was the only way the bank would accept the deal. I was hesitant but signed. The next day, I just didn’t feel right about the deal and had yet to send info in the dealer was asking for. The dealer insisted he would lose his job if i didn’t send in info he needed for the bank. I asked the dealer not to send any info to the bank and that we needed to come in to resign new papers because i did not want to be the owner, i already have a car that i’m paying for and it hasn’t been 2 yrs since i’ve had my current car. The dealer told me i had his word and nothing would be sent to the bank yet and that we could come in to sign the papers. The dealer kept calling me insisting he would lose his job and the whole situation made me nervous and upset. I called the dealer and said i didn’t want to go through with this. He called my mother and told her if i returned the car it would be a repo, my mother was distraught and crying. I was a bundle of nerves, couldn’t eat, couldn’t work. I returned the car and was treated rudely by cocky managers. They said they waived my info needed (pay stubs and bill) for the bank. I asked what the banks name was since it wasn’t on the paper work. I asked if it was a prime or subprime loan and was told prime, I asked the banks name and I was told the name of the bank and called them the next morning and found out it was a subprime lender and they said they did not receive paperwork and that they wouldn’t accept anything without proof of pay.
I left the car, keys and papers there. I was a bundle of nerves and was treated cruelly with intimidation tactics. I didn’t know what to do since this situation was new to me. This happened Thurs, the car was returned fri in less than 24 hours and since Friday, i have been physically ill with the whole situation.
August 4th, 2008 at 10:47 am
Nicole: There are several issues with your e-mail that cause concern with us. If you would like to discuss this further, please call us at 800-LEMON-LAW (1-800-536-6652). My extention is 131.
Michael Sacks
Director, Communications & Client Services
Kimmel and Silverman