Five Ways Car Dealers Rip Off Soldiers (and Everyone Else)

From the yo-yo sale to the stealth repo.

Photo used under Creative Commons license by Flickr user <a href="http://www.flickr.com/photos/bitzcelt/">bitzcelt</a>.

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THE PHANTOM TRADE: Navy Culinary Specialist Joe Lee thought he’d gotten a sweet deal on a used Mercedes. Then he learned that the Norfolk, Virginia, dealer never paid off the loan on his trade-in, a common scam. It simply sold his old Hyundai and pocketed the cash, plus money he’d put up to cover the old loan. Now Lee is stuck with two payments.

THE YO-YO SALE: In this classic credit ruse, you leave the lot with one interest rate only to be called back and asked to pay a higher one. Army Specialist Michael Hill smelled a rat after his Florida dealer claimed financing had fallen through on the used Acura he’d bought the week before. He and his wife refused to bring it back, so the dealer retaliated with phone calls, five an hour, threatening arrest—until they hired a lawyer.

THE HOT BOX: If you fall for the yo-yo (see above) and return the car, then they’ve really got you. Airman Sandy Lieu was stuck at a Florida dealership for more than six hours; salespeople threatened to have her arrested if she took the car back home, but if she ditched it there, they’d impound it at her expense. When Lieu balked at the higher interest rate, a saleswoman claimed she was “making the Air Force look bad.”

THE STEALTH REPO: In June 2006, former Navy Petty Officer James Tapio, recently disabled in Iraq, tried to buy a used Ford Expedition. The Florida dealer jerked him around for months with various yo-yo scams—making him sign new contracts and put down more cash. Then Tapio woke one morning to find his ride repoed without explanation. The dealer refused to return Tapio’s trade-in car or his $5,000 down. Tapio finally got a lawyer and prevailed when the case settled.

THE NO-SERVICE CONTRACT: Used car dealers, amazingly, are not required to disclose a car’s known defects to the buyer, a fact that makes the service contracts they peddle even dicier. When the front end of Marine Corporal Adam Nowak’s Mitsubishi Eclipse collapsed on the road, his overpriced contract wouldn’t cover repairs—the car had previously been in a head-on collision. His dealer refused to provide a refund.

SIX TRUTHS

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Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

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Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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