Public Roundtables: Protecting Consumers in the Sale and Leasing of Motor Vehicles, Project No. P104811 #00107

Submission Number:
00107
Commenter:
Rebecca Covey
Organization:
Rebecca J Covey, LLC
State:
Florida
Initiative Name:
Public Roundtables: Protecting Consumers in the Sale and Leasing of Motor Vehicles, Project No. P104811

The practice of delivering cars to consumers, and telling consumers the deal is "final" and having them sign paperwork consistant with that, while withholding the rights for themselves to "rescind" or "recontract" the financing of the deal is rampant and destructive. It is referred to as yo-yo deals because the dealer, having once delivered the vehicle and taken the consumer's trade in and cash, has the consumer on a string to keep bringing them back. This allows the dealer to keep the consumer from buying a car elsewhere or obtaining a competitive price or financing elsewhere, while at the same time allowing the dealer to increase the interest, terms, cost and sometimes sell an entirely different car. The consumer is helpless to negotiate having signed away their contract rights and having given their trade in, which the dealer has frequently already disposed. Their should be some clear uniformity from the FTC that this conduct is unfair and should not be permitted.