The Expert Podcast

Our market the automotive market today is a day to watch this video We have some. Really urgent warnings for. Potential buyers of vehicles. In that. There's some new contracts that are being put into place with dealerships and also some car market.

information that may affect your trade in may effect. Our prices may affect new car prices Used car prices. So you want to. Check this out for sure. So let's jump right in and take a look at some contract.

Language that's now being introduced. To dealership contracts And I'm sure you're going to have opinion about this This is something that a lot of times people just sign everything put in front of you by dealership. And you're not going to see. what the terms the conditions are So this is a…

contract that is let me put it a little bit bigger so you can see it better. This is a contract that is used by some new car dealers and. this red arrow here this is dividing two parts of the contract These are not really on the same page are not related…

So if you're trading in a vehicle, To a dealership that has a payoff on it meaning that you owe money to the bank. Which many people do it's nothing wrong with that Sometimes you want to buy a new car before you finish paying off your old car and that's fine. You can do that. And what the dealership will do is they'll take your car. Let's say it's a car that's worth.

I don't know Let's say $20,000 And let's say you owe 15,000 on it. What they'll do is they'll take that 15, 20,000. They'll subtract the 15,000 that they have to pay to your bank. And the other 5,000 they put it towards your new car That's entirely normal, nothing wrong with that…it's actually a very convenient way for dealerships to help you. With new cars but this.

Language in the contract for some dealerships is concerning. It says I will remain responsible for paying the balance owed lien holder. I understand I'm assuming sole responsibility for paying down paying lower at least. Balance and I must submit payment to the lien holder to satisfy the lien. And then it goes on to say, I understand that the dealership will not be required to remit any payment to the lien holder.

Prior to selling the trade-in vehicle So in theory, You trade in a vehicle. You have to keep making payments on it. Until they find some way to sell it. What if it's just on their love for one or two or three or four months and they can't sell it…

Technically you're supposed to pay the payments on it. You would think that well as soon as you trade it in They own it and they paid off and then they're responsible for, selling it. According to the language of this contract it says the dealership will not remit any payment to the lien holder. Prior to selling the vehicle…

I'm sure you have some thoughts on that. You trade in your car you figured the dealership's gotta take care of it. What happens if the market. drops and they can't sell your vehicle right away. And we'll see here in a minute why that's very very likely to happen…

This is something that we've not seen This was sent to us by a viewer. and a contract they were working on with a dealership…

It's troubling. You know you trading your car If they take two or three months to sell it you might have to keep making payments on it I…

never seen this before up until this year. Now below that is another section of a trade in. requirement…

And what that says is you'll provide a title That's fair enough. Unless I've disclosed Otherwise it's not a junk or salvage vehicle Well, That's fine but you would think the dealership would research that before they give you a trade-in number If they say their vehicles were 20,000. They would do the research for Carfax or NMVTIS or other sources. The question is not so much about the condition but about the appraisal. You're also.

Certifying that has never been in an accident and never incurred damage as a result of an accident So if you bring it. vehicle to a dealership. They're saying that you have to tell him if it'd been an accident. What if you don't know…

Right. What if you bought the car used, you weren't aware that it was in an accident. You weren't aware that it incurred damage as a result of an accident. And now they, they take it in trade. What if they put it on the lift a week later and they find out Hey this car has been in an accident.

Maybe their used car manager. Didn't see it because it was raining out or they were just incompetent or maybe they were lazy and they didn't want to crawl under the car. If they find damage from an accident. According to this contract If you read down below it says. Dealership may let that its discretion to reappraise our return the traded vehicle to the cusp.

So you traded in a vehicle in good faith. They said they'll give you 20,000 for it. A week later they call you up and say you know what We don't like this vehicle anymore We found some damage. We don't want to take it back…

Or they can reappraise it. What happens in that case It says here customer agrees to pay the dealership. The difference between the agreed upon trading and the reappraised value. So they can call you up. A week later two weeks later there's no timeframe on this.

And say we found damage on the vehicle. And we've decided that instead of 20,000 and we only want to give you 17,000. So give us three grand…

And this is in the contract You have to do it. another thing they can do is say if they want to give it back to you if the dealership eat elects to return the vehicle and it's up to them, it says you're at their sole discretion So they get to choose not you. If the dealership elects to return the VA. customer agrees to pay to the dealership, the original trade value, plus any repair costs and expenses incurred by the dealership. So if that dealership takes into trade, they find something they call damage.

A week or two a month later. They can say Hey this car is not worth as much. You owe us. This much that we put into this car to fix it up or clean it or whatever they did. Now.

Certainly you don't have the same rights If you buy a car from a dealership. And then…a week later you find something wrong with it. You can't make them pay for it because you signed off saying you take it in its current condition. So it's not a balanced contract. Right there in a…

they're in a…

Unfair adversarial position look dealerships I get it You have to protect yourself and we don't have any objection to dealerships saying look we don't want to take a salvage vehicle a junk vehicle…

And even section four. The odometer is functional and accurate has not been. altered Okay That's fair You don't want to. You know scam a dealership on a odometer rollback. But this part about the condition.

If they find something wrong with the condition later. They can make you pay or if they take in your trade-in and it has a payoff on it and you're making payments through your lender. They can say you have to keep making payments until we sell it…

So really they don't have to come out of pocket for that imagery It's kind of like having a car and consignment. They get a free car. They don't have to pay off your tray That 15,000 they can keep in the bank. Until they sell it and they get the money from that buyer and then they pay off your car. So that works.

So these are two things to watch out for our contracts You may be able to negotiate this with the dealer You may be able to say look I'm not going to agree to this section cross it out. Or you may ask the dealer in advance if they have any of these. These terms the conditions. You know from our loyal viewers. In.

the various channels. This type of thing you're going to have some opinion on. It's very…

We're very curious to see what your thoughts are on these new types of terms and conditions Finding their way into dealership contracts. Look we think a dealership should be protected You You shouldn't they shouldn't be at risk of getting scammed by a customer Right That's fair enough. But when a dealership appraises a vehicle. It's kind of a responsibility we think for them to find what's reasonably. Available on the vehicle if they're not sure because you know they're not able to appraise it properly at the time you're working the deal, then maybe they should.

Not commit to the deal. Right because you don't really have the ability to fully. inspect a vehicle You have to take on their word that they are selling you a good vehicle…

So be aware of these there may be other terms and conditions If you're seeing a contract that you're getting from a dealership. Yeah that yeah. wondering about some of the language on go ahead and email it to us, through our website. Glad to take a look at it again we're not attorneys we can't give you legal advice but we do like to see a lot of these consumer contracts to see. If there are things on there that are troubling.

That may be worth taking look at So. As we promised we're going to talk about the used car market a little more. So here's here's where this could come into play. Right Let's say you are going to buy a car. And…

You're looking at the car market. Well, the car market's dropping. Right Especially for used cars. Let me make this a little bit bigger so you can see it better…

Right. Wholesale prices are dropping. So think about that last example. You trade in your vehicle…

You. Have a payoff. And they give you 20,000 for it. What if the next week the book value in that vehicle drops to 19 and the next week it drops to 18. It might take them a week or so to get the car reconditioned cleaned.

You know fix the brakes put on new tires and put on the front line. So now it goes on their front line and now they pay 20,000 for it. But the book has dropped to 18 so maybe they can't sell it right away because the price is too high. And the meantime according to that last contract we looked at, you have to keep making payments. That may not be what you signed up to do, right.

You may want to have your car paid off and not have two car payments Cause you have to pay the car payments on your new car. And now you have to pay down the used car to…

This is something where…

The used car market can work against you. Wholesale vehicle values fell. In mid-July…

The options. Are seeing. People buying only good deals as prices plummet prices plummet. Now these buyers are not retail buyers This is at the auction This is LaneWatch…auction Buyers are only buying good deals at the auction. So used car prices are falling As we see from three different articles.

And. This could affect you as a buyer. Look if you have a trade in, you might want to trade it in sooner than later So you get good money for it. If you're looking for a used car you might want to wait to see if the prices fall…

In the Evie. Market. What we're seeing is some news here that is of interest. Still Lantis. They're building a second battery plan for Evie So still antice which builds Jeep Chrysler Dodge or Ram.

They're going all in on electric vehicles. They're building another battery plant So this just goes to show they're not at all wondering what business are going to begin in a few years They're going to be in the EV business because they're building battery plants left and right This one's in Indiana. Am. there they're just cranking out EVs So keep that in mind when you're looking at vehicles what might be going on in the market? And what how it might affect values and also what you can expect for availability still Lantus is the manufacturer of Jeep.

In 14 states still antice has already said to Jeep dealers, we're not sending you any more gas vehicles The only vehicles we're sending you are going to be EVs or hybrids. So…

They're committing to this electric vehicle. Boom…

Everybody has some opinion about that Do you want nav do you not want an Evie Do you think you've used a scam? Do you think it's the wave of the future? I'm sure you have some thoughts on the matter. We want to hear. We also want other people to hear them We want.

You know your opinion to be. Heard by. The masses. If you have some thoughts about EVs how it affects your life put it out there. Look you may not agree with everybody.

may not agree with you. The more that we understand what more people are thinking, the better we can make plans for what's going to happen in the market and how to. basically prepare our vehicle. Lifestyle. Around for the future…

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