Car dealer sentenced for fraud, lessons to be learnt.

Car dealer sentenced for fraud, lessons to be learnt.

A car dealer in Philadelphia, Pennsylvania, Michael Sullivan was sentenced to 12 months and a day in prison for fraud against Yardville National Bank for around $ 648,106, reports the Imperial Valley News website.  The Yardville bank provided Mr. Sullivan with a line of credit to sell cars which was secured with the cars in the car dealer as collateral.

When Mr. Sullivan stopped paying for the installments of his line of credit and the bank moved to demand the security on their loans and discovered that most of the cars used as collateral on the loan had already been sold. Further investigation showed that Mr. Sullivan had also defrauded customers on the trade in value of their cars. He also defrauded the clients because he failed to pay the loans on the cars he accepted as a trade in, bringing the total amount he was sentenced for to over 900,000 dollars.

This sentence brings to the light important lessons for all that want to buy a new or used car. We are not saying for a second that all car dealers are like Mr. Sullivan just like not all shoppers are thieves but shops still install theft protection on their items.
This article will focus on two steps that will protect you from car dealer fraud. 1) Check your car finance and 2) check your old car trade-in.

Car finance.
The best thing you can do if you are planning to buy a new car is to work out your own car finance. Go to various banks and finance companies, shop online with free car loan quotes, check your credit score and find out what kind of deal you should expect to get. This will help you to get the cheapest loan you can get. Nobody is going to work as hard as you to get a good deal. Let’s face it, as decent and honest as the car dealer might be, he still is motivated to make you spend as much as he can on your car loan, his commission depends on it.
The solution is to find your own car finance loan and leave car dealers for what they do best, sell you a car not a car loan.

Car Trade-in.
Trading in your car is not the routine, easy as can be, don’t think over a minute about it procedure many car dealers want you to think. Selling your trade in car is often the largest earner for car dealers. Car buyers often underestimate their old car when buying a new one. What is worse some car dealers will take trade in cars and then not pay for the pending loans on them. Because this “I will pay for the loan on your trade in car” is not included in the contract many buyers are left having to pay the loan and late fees of a car they no longer own.

For this reason, sell your own car, nobody is going to work as hard as you to get a good deal. Leave car dealers for what they do best, sell cars!