June 25, 2024

Finance manager caught adding fraudulent charges worth $20,000 to sale

Even when you receive a discount on something at a dealership, they will always attempt to extract more money from you to compensate for the discounted price. For example, Hyundai covered the cost of replacing the engine for my car, but the dealership insisted I pay $800 for new hoses and belts. The primary location for these types of incidents is typically in the finance manager’s office. During the final contract review, dealers often try to slip in additional items like extended warranty plans and gap insurance. There was even a case where a dealer attempted to add $20,000 worth of extras to a customer’s bill.

This recent dealer scam was brought to light through a tweet on X by friend of the site Zach Shefska from CarEdge and Ray & Zach on YouTube. According to the tweet, Zach assisted a customer with a Lexus purchase at Lexus of Englewood, New Jersey. However, when they reached the finance manager’s office, the manager tried to add thousands of dollars in additional charges. Seeking more information, I contacted Zach for further details.

He mentioned that they assisted the customer in purchasing the Lexus and negotiated a $7,000 discount off the sticker price. Allegedly, the dealership’s finance manager was displeased with the $7,000 discount. Zach received a message from one of the staff members working on the deal, alerting them to the manager’s actions. The message read, “You gotta be kidding me.” Shortly after, the customer forwarded the vehicle contract to them.

Image: CarEdge

The total price of the vehicle was slightly over $90,000. However, the manager attempted to tack on almost $21,000 in unnecessary add-ons. This included an almost $9,000 extended warranty, a $5,000 maintenance contract, an additional $5,000 for “tire wheel and product,” $1,200 for Toyota insurance, and a shocking $1,240 for an “optional sales commission.”

To everyone’s surprise, Zach managed to have all the unnecessary charges removed and successfully sealed the deal. Personally, witnessing such dishonesty would have been a deal-breaker for me, and I would have torn up the contract and walked away. However, the individual purchasing the Lexus must possess more patience and understanding than I do.

Regarding the sales manager who attempted to deceive the customer, I inquired with Zach about their fate, but he was unsure. It is likely that no consequences were faced, and the individual continues to occupy their position comfortably.

This situation reinforces the importance of thoroughly examining every line of a car sales contract. Dealers may dislike this thoroughness and attempt to minimize it with remarks like “Just sign here.” However, such exploitative extras are often sneaked in because people fail to review the contract in its entirety. If only there were preventive measures that could be implemented by the government to curb such practices.

### FAQ

#### Q: Are dealerships known for adding unnecessary charges to the final bill?
A: Yes, dealerships have been caught adding thousands of dollars in extras to customers’ bills.

#### Q: How can customers protect themselves from such scams?
A: By thoroughly reviewing every line of the sales contract and questioning any questionable charges.

### Conclusion

In conclusion, it is crucial for consumers to be vigilant when dealing with dealerships to avoid falling victim to unnecessary charges and scams. By staying informed and conducting thorough reviews of all documents, customers can protect themselves from dishonest practices in the automotive industry.

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