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Car Loan Fraud Exposed!

By

Steven Tomlinson

Forward

If you are reading this, first, we thank you for your investment.

Secondly, understand that we are taking on the behemoths of global finance (banks) local communities (car dealers), as well as car dealer marketing firms, including mail houses and car dealer staffed event sales companies.

When you read these pages, understand that everything we disclose in this book has been personally witnessed by our team of investigators, practiced and encouraged by the car dealers, the staffed event sales teams, and truth be told, the banks.

Everything.

Think about this.

When the housing market ‘crashed’, due in part to the ‘liar loans’ where consumers did not have to ‘prove’ much of what they based their loan qualification on, the banks acted incredulous when these loans began imploding, in mass.

The bankers who structured these types of loans in the first place, got bonuses for writing the loan program details, got paid bonuses when the loans were written to each consumer, and then got BONUSED by the bailout ‘stimulus’ money when our government wrote those checks.

The consumer was the recipient of the true fallout pain, since their houses dropped in value, their credit got ruined, and their life savings were in many situations wiped out as well.

Well, the same disaster is being created right now in the car industry, and the car loan fraud secrets revealed in this book are stunning in their internal dealer execution and frightening when you realize how many cars are sold daily across America using these same fraudulent tactics.

This greed and downright lying exposed in this book is both ghastly and shameful, and yet it happens EVERY day across America.

And, now that you know what to look for using the information provided in this book, has probably happened to you or someone you care about.

This book should assist you in getting compensation for the fraud perpetrated on you by these various institutions.

Table of Contents

1. Types of Car Dealer Loan Fraud

   1. Falsifying Vehicle Equipment

   2. Falsifying Income

   3. Falsifying Rent or Job Information

   4. Falsifying Down Payment (In house rebates)

   5. Falsifying Kelly Blue Book Information

   6. Dual Sale on Credit Approval

   7. Damaged / Accident / Salvage Title Vehicles

2. ‘Super Sale’ Fraud (Key Mailers)

   1. Dealer Owned Scanners

   2. ‘Bank Liquidation’ & ‘Auction Pricing’ Scam

   3. ‘No Price Posted’, ‘Negotiate with the Bank’ & ‘I’m With The Bank’ Scam

   4. Don’t Trade Your Negative Equity’ Scam

3. How Car Dealers Fraudulently Underpay Their Sales Staff

   1. Commission Sales vs. Hourly Rate Sales Staff

   2. Fraudulent Cost Versus Commissionable Pay

   3. Fraudulent Commissionable ‘Bucket’ Pay Plans

4. Form Letters To Send Banks, Dealers, DMV, BBB & Attorney Generals

   1. How to question and contest your auto loan, setting the stage for recouping fraudulent charges, false equipment, and outright lies by car dealer sales and management staff.

Chapter One

1. Types of Car Dealer Loan Fraud

   1. Falsifying Vehicle Equipment

Dealers are required during the bank loan approval process to verify equipment on the car you are trying to buy.

Cars are ‘valued’ using equipment and options using North American Dealers Association (NADA) vehicle books, and most banks will only loan a percent of what is called ‘left book trade value’ (using the NADA book), or in the online site, clean trade value.

(There are exceptions as to what ‘book’ a bank will value the car at for loan purposes, but for almost 90% of the nation, ‘left book NADA’ will be the norm).

The only ‘adds’ a bank will normally allow for your car loan financing are found directly beneath the year, make and model vehicle information found for every car produced for sale within the NADA book, or online at www.NADA.com

The cars listed in the actual book only go back so many years, (although the online guide www.NADA.com goes back to 1926 to present) since most banks will not provide standard finance options for older vehicles.

The following examples are using images and information from www.NADA.com

Here is a picture of a screen shot of an online NADA book value on a 2010 Mazda 6, 4 cylinders, with 27,000 miles on the odometer (for illustration purposes only).

As you will notice, if we take the cars left book or clean trade NADA value, then add for the current equipment the car truly possesses, then add or deduct for miles or transmission, the ‘left book NADA’ value for use as a baseline of loan computations is $13575.

Now, since all banks ‘advance’ the dealer (and you) a loan based on a percent of that ‘book’ value (book value x 115%, 125%, 130%, etc), let’s assume your credit score will allow the dealer to advance a loan to you at 130% of ‘left book NADA’ value.

That means the car dealer can provide you a loan for $13575 x 130% = $ 17647, plus tax, tag and title and dealer processing fees.

So, if I am the dealer manager, and I want to get a larger advance so I can make more gross profit on you, (especially during staffed event super sales discussed in the next chapter) I will tell the bank that the car has equipment it does not have, like saying it has a power sunroof, alloy wheels, bed liner or tow hitch for a truck, etc.

These false added equipment listings provide the dealer false profit, at your expense, since you are paying for items not on the vehicle, and interest to finance those items, to boot.

Here is that same car, but with false ‘adds’, so the dealer can fraudulently pad their pockets with your money.

In this example, the dealer just allowed themselves to finance $2763 MORE money on that car, ($20410 - $17647 = $ 2763 all unknown to you.

The bank will normally never call and check these fraudulent ‘adds’, due to your credit score being above 620-640, and you unwittingly will pay that fraudulent money back, plus interest, without ever knowing it.