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Shitbag Dodge dealer pulled this shit on me 40 years ago in SLC. No cell phones to call police or record....
Apparently Some Car Dealers Think It's OK To Detain Customers Against Their Will
You would think that by 2021 car dealers would have wised up and fixed the broken mess that is car shopping. Many stores have adapted, but some are still relying on classic âstealershipâ tricks. One of the most egregious is preventing someone from leaving the showroom.
Imagine going to your local big-box store for some specific item, only to learn when you get there that the price isnât as good as you thought. On your way out, the manager sends some goons to block the exit and demands you take that deal right now.
This sounds absolutely ridiculous, but similar situations have happened, and continue to happen, at car dealerships.
A Jalopnik reader who is a Maryland consumer protection attorney, Daniel Whitney Jr., told me about two recent cases his firm handled in which dealerships resorted to âfalse imprisonmentâ in an attempt to force a customer to take a deal that was clearly not in the buyerâs best interest.
According to Mr. Whitneyâs blog post, one of the cases happened as follows -
The customer then contacted Mr. Whitneyâs firm and they were able to settle the case with the dealership for $100,000. He also told me about another case in which a woman took her car in for service and showed interest in a new car deal, only to have the dealer hide the keys to her trade-in for hours until she too called the police.
In addition to speaking with Mr. Whitney, I also contacted former Jalopnik contributor and consumer protection attorney Steve Lehto. He said that he had never handled a false imprisonment case, but he had heard of dealers doing the âhide the keysâ trick on a number of occasions.
I asked both attorneys what customers should do if they find themselves in a situation where a dealer is preventing them from leaving. Both said that dealers will often immediately change their approach once the police are called.
Another possible approach is to take out your cellphone and start recording the conversation. Mr. Whitney says that as long as the other person is aware you are recording, you avoid issues with local laws. He also says that once the dealer lets you leave you may still have a legal case. He advises that you email the dealership with instructions to âpreserve all interior and exterior audio and video recordings on the date the incident happened in anticipation of litigation.â
While Iâm sure some car shoppers would like to extract a nice settlement from a dealership, I think the best way to manage these situations is to avoid them altogether. The vast majority of dealers know better. Consumers should get a quote in writing ahead of time and do some research about the dealer via reviews and social media. Then buyers can focus on the stores that are professional and cooperative.
This is great info. Can I add some more info to it? I sell Insurance and we have had some issues with local dealers lately. It has to do with Gap Insurance. If you are unsure, this is coverage for you that will pay to the lienholder the difference between what is owed and the Actual Cash Value(ACV) of the vehicle. This is usually only necessary for the first 18 to 36 months of owning the new vehicle(unless you get screwed on the interest rate).
A couple of our clients got new cars and the dealer convinced them to buy the Gap Insurance. They tend to use the same tactics of strong-arming people into buying it. They make a HUGE profit on this sale. One example of mine recently was around $1,000.00. They bought the insurance and then called us to add the vehicle.
Most insurance companies offer Gap for a very small amount of money. In my example, it was going to cost my client $30 per year for Gap coverage. Deductible still applies. With some Gap policies from the dealer, the deductible is covered... up to a certain point. Here is my example:
over a 3 year period
Dealer Gap coverage: $500 max deductible required
covers the difference beteween ACV and payoff plus the deductible.
cost if you are in an accident: $1,000
cost if you are NOT in an accident: $1,000
Insurance Gap coverage:
covers the difference between ACV and payoff.
cost if you are in an accident: $590. deductible + premium each year.
cost if you are NOT in an accident: $90
NO BRAINER!! Get it from your insurance carrier if you even need it.
What is worse is that this client traded in a vehicle that was paid for and the loan was for $8000 less than the sticker price of the new car. She did not even NEED Gap insurance. Luckily she was able to cancel it (usually can be done in the first 30 days).
This is info I wish I could get out to everyone. I hope everyone on the forum sees all of this info from this thread. Thanks PSUTE for posting!
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