Dealer Reserve refers to the difference between the lowest interest rate a lender approves a car loan for, and the highest interest rate that the car dealer can trick a customer into paying.

This practice of car dealers secretly holding interest points and misrepresenting to customers the interest rate they qualify is an open, dirty secret of the car business.

The "Buy Rate" is the lowest rate a lender will authorize to make a loan, and the higher rate is the dealer's "Participation Rate." When a finance manager is able to trick a customer into paying a higher interest rate, the dealer makes an additional profit, and a portion of that extra interest charge is often kicked back to the lender.

Customers who are cheated into paying a higher interest rate than they qualify for, and who do not have the lowest interest rate disclosed to them, have legal rights and can fight back.

#Car​ #cars #lawyer​ #interest

SUBSCRIBE ON YOUTUBE    / whitneyllp​  

By: Daniel W. Whitney, Jr., Esq.
Whitney, LLP
409 Washington Ave, Ste 750
Towson, MD 21204
410 583 8000 - Phone
[email protected]
We primarily represent consumers in Maryland.
Call Us For a Free Consultation
VISIT OUR WEBSITE: https://www.whitneyfirm.com

To Find a Lawyer to Help with Car Dealer Problems In a State other than Maryland:
National Association of Consumer Advocates:
https://www.consumeradvocates.org/fin...

Why I became a lawyer that sues car dealerships and why I post videos about my car dealer fraud cases and dealer scams:
Before becoming a lawyer I sold cars while I was in college. It was while selling cars in Maryland that I learned of the ruthless nature of car dealerships, and learned there is only one rule that matters at most dealerships: GET AS MUCH MONEY AS POSSIBLE FROM THE CUSTOMER, TODAY, AND NOTHING ELSE MATTERS. I saw things that I knew were illegal and decided I wanted nothing to do with that.

Today, I've sued those same dealers and others to help cheated consumers fight back. Consumers must know they have more legal rights than they realize, and can take action against dishonest dealers. #dealership #newcars #usedcars

Common car dealer problems and scams I help car buyers with include:
1. Car dealer forged the buyer’s signature on a second finance contract.
2. Dealers selling a car without having the title. happens all the time
3. Changing the monthly payment and amount financed after the deal is done.
4. False online price advertising when the online price increases at the dealership.
5. Bogus reconditioning and inspection fees for illegal profits.
6. Selling vehicles that did not pass state inspections.
7. Forcing customers to buy extended warranties and vehicle service contracts.
8. Spot Delivery Violations - when financing is not approved:
9. Dealer keeps the down payment although financing is not approved;
10. Dealer sells the trade although financing is not approved;
11. Dealer forces customer to sign a contract with worse terms; and
12. Dealer forces customer to keep the contract and not allow them to cancel.
13. Charging illegal finance charges and passing along exorbitant bank fees.
14. Car dealer does not disclose rental history or other prior commercial use.
15. Credit Application fraud - creating fake jobs or inflating salary.
16. Car dealer runs credit without permission.
17. Car dealer refuses to cancel the extended warranty or steals the refund money.
18. Car dealer uses out of state sister dealership and charges illegal fees and interest.
19. Taking advantage of bad credit and low credit buyers.

Common resolutions to car dealer cases once dealers are sued include:
1. Financial restitution including actual damages (meaning actual money the buyer spent).
2. Unwinding the deal, meaning the buyer returns the car and gets all of their money back.
3. Dealer buys the car back for the remaining payoff and returns the down payment and fees.
4. Cancelling a warranty or service contract and getting the refund.
5. Getting the trade-in back.
6. Having the down payment returned.
7. Dealers pay the buyer's attorney’s fees.

We do our best to educate consumers as to the common problems and scams with car dealerships and to fight back when buyers are taken advantage of. Some other great channels for information about car dealerships and auto fraud dealer schemes are Kevin Hunter The Homework Guy, The Chevy Dude and WhiteBoard Finance.

Here is our blog on our dealer cases and dealer legal issues: https://bit.ly/3bFkTeK​​
Here are descriptions of some of our past car dealer settlements: https://bit.ly/3pG2pzN​​​​

This YouTube Channel and this video are not legal advice and do not provide legal advice. An attorney-client relationship with Whitney, LLP and Daniel Whitney, Jr. is created only once a representation agreement is signed by Whitney, LLP and the client. Prior results are not a guarantee of future results, and all cases are different. Thank you for watching.