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Am I allowed to take the Retail Installment Sales Contract home with me before signing it, especially if I don't understand everything in it?

9/19/2018

Yes, you are allowed and, of course, you should never sign any contract you do not fully understand. The Truth-in-Lending Act and its regulations require a creditor to make the required disclosures “clearly and conspicuously in writing, in a form that the consumer may keep”.

Those disclosures include the Annual Percentage Rate, the amount financed (the amount of the credit being extended or money being loaned), the finance charge (how much interest you are paying back), the total of the payments, and the total amount paid (payments plus down payment).

Taking the contract home before you sign it is a great idea. This allows you step back, away from the pressure of the salesman and his boss, and examine whether the deal is good for you, such as whether you can afford the payments. Second, you can determine what other costs may be incurred like property taxes (not the same as sales tax) and higher insurance expenses. You may decide the monthly expense is too high. Third, you can shop the interest rate to see if you can get a better deal. Fourth, if there are any terms you don’t understand, you can find someone to explain them to you.

The Retail Installment Sales Contract is going to state there is no “cooling off” period so take your time. There really isn’t a rush to buy a car.

What happens to vehicles involved in floods and how to avoid buying one

9/8/2018

During hurricane season, it’s common to see news footage of cars getting washed away by storms. But few people understand what really happens to those flooded cars once the owners get them back.

While cars seem pretty strong and sturdy, they are basically just large electronics – especially if they’re newer models. And you know what happens if you throw a TV into a pool – there’s little that can be done to salvage it, and even if you can fix it, it’ll never run as well. A lot of cars that get damaged in floods will end up totaled, and about half of them will get re-sold on the market through salvage auctions, which means a lot of people have no idea they might be purchasing a used car that was previously in a flood.

So how can you avoid purchasing a vehicle that was involved in a flood? First, make sure to track down the car’s Vehicle Identification Number, which is on the dashboard and title. There are many databases such as National Motor Vehicle Title Information System and VINcheck that allow you to look up a vehicle’s VIN to see where it’s been. Some cars do slip through the cracks thanks to state-by-state inconsistencies in salvaged vehicle branding so it’s important to look for other telltale signs.

When looking at cars, buyers should first and foremost check for caked-on mud or any kind of peculiar odors in the carpets and other difficult-to-clean places. The headlights may also feature a visible water line on their lens, which is a major giveaway that the vehicle is flood-damaged. Another big clue is rust, especially in screws under the dashboard.

While states have certainly made moves to protect consumers from unsuspectingly purchasing flood-damaged vehicles, there’s always a risk when it comes to buying used cars and a smart buyer will know to keep an eye out for suspicious signs.

Subprime Lending on Cars

8/31/2018

We are almost out of the woods regarding the mortgage debacle, right? I mean, the banks are stronger. They aren’t handing out loans to just anyone any more. They are being responsible, right? Well sort of.

The banks and investors have moved away from real estate. Now they are into auto loans. They have moved from loaning money on something that doesn’t move and will hopefully go up in value to loaning money on something that moves a lot and definitely goes down in value each month. Banks and lending institutions are moving into sub-prime lending on cars. That’s right. What they did before with real estate, they are now doing with automobiles. The banks and lending institutions loan money to lots of sub-prime folk. They stretch out the loans longer than before. (It used to be loans were for no more than 5 years (60 months). Now they are moving towards 72 months and longer.) These lenders bundle these loans then take them to Wall Street where they are sold as securities. If the economy falters, what is going to happen with these loans? What will happen if a bunch of these cars get repossessed?

Take a look at the Truth About Cars http://www.thetruthaboutcars.com/2013/06/all-is-fine-in-sub-prime-land-says-some-with-a-vested-interest-in-its-success/ citing the Detroit Free Press at http://www.freep.com/article/20130620/BUSINESS0104/306200121/auto-sales-lending-subprime. The credit and car folk say there is nothing to worry about. Can you believe that? Do you believe that? People are spending money, yes. Is it wise? That remains to be seen. Have people paid down their debts? Has the government? Remember, when the banks started to fail, they went to the government...to us. We bailed them out. Now it appears they want to do it again. What will happen this time?

What are the most common types of consumer complaints in south carolina?

8/24/2018

What do you think are the most common types of complaints that consumers file with the government? Everyone has frustrating experiences with housing, health insurance, and other industries, but some South Carolina residents might be surprised (or not) to learn that vehicles are the number one complaint category in the state. According to the South Carolina Department of Consumer Affairs (SCDCA), about 19.5% of their cases in 2017 revolved around cars – used cars, repairs, and credit issues were some of the biggest problems. In fact, cars make up the majority of complaints nationally, too.

But vehicles have only become a problem for consumers in recent years. "As the economy continues to rebound, more consumers are becoming active in the marketplace, especially purchasing vehicles," according to SCDCA Administrator Carri Grube Lybarker. South Carolina has protected consumers for years, though, as the state introduced a lemon law in 1989 to prevent the sale of defective cars (along with vans and small trucks – as long as they are passenger motor vehicles). Under the lemon law, consumers who purchase a car and find that its defects cannot be repaired are entitled to a refund. In order to get that refund, a South Carolina resident would have to participate in an arbitration procedure with the manufacturer (free of charge to the consumer) and if that process doesn’t help, only then can the purchaser go to court.

The SCDCA’s job is to ensure the auto industry complies with these minimum requirements, especially in regards to flood-damaged cars which are often sold to people who have no idea of the car’s history. Indeed, the SCDCA addressed 105 violations of motor vehicle advertising laws and issued several fines in 2015, leading to justice for wronged consumers.

Have you ever had issues with a car you recently purchased? Were you able to resolve them through the dealer or manufacturer, and if not, how did you deal with them?

Does the lemon law apply to manufactured homes?

8/17/2018

a mobile home is a practical and flexible option for a lot of homeowners. However, mobile home owners are among the least protected by housing laws because they own the home but not the land beneath it. So what happens if you purchase a new mobile home and shortly thereafter realize you have a major problem like mold that you can’t easily fix? You need to determine whether your mobile home is protected under Lemon Law.

In some states, the answer is a clear yes, but if your state’s answer is no, you may have to look for recourse elsewhere – for example, some states may offer protections against deceptive trade practices instead through a consumer protection entity. Either way, it’s important to contact a lawyer as soon as possible because dealing with mobile homes can be tricky legally. Your best bet to get the most money back on your defective purchase is with an attorney through a Lemon Law or warranty case, rather than through another route like small claims court.

If your state does clearly consider mobile homes protected under the federal Magnuson–Moss Warranty Act, then you are more likely to have a strong case. Make sure you always keep a clear copy of your original purchase contract, any work repair orders you have made, as well as photos and videos to document damage or needed repairs. This way, when you do contact an attorney, they can help you determine quickly if you have a case.

Have you ever purchased a mobile home and dealt with costly repairs?

Is A Voice-Controlled Co-driver Right for You?

8/10/2018

Voice-controlled co-drivers are the latest innovation to hit the auto market in response to voice automated technology. An interactive voice-controlled co-driver can set GPS directions, locate the nearest coffee shop or other restaurant choice, pinpoint the next rest area, and much more.

Similar to Amazon's Alexa, these features give you the convenience of a smart phone without having to touch or look at a screen. Since the Insurance Institute for Highway Safety, Highway Loss Data Institute (IIHS) states 94 percent of car crashes are caused by distracted driving, a voice-controlled assistant sounds perfect. But there are a couple of instances where you might want to reconsider this feature, or, at the very least, be prepared to overcome some challenges.

If you're not technologically savvy, this may not be for you. You have to program the feature before you start, and there is a learning curve. If you have difficulty with Alexa or other voice-activated features around your house, you might want to reconsider utilizing the voice control feature.

If you have a thick accent, you may have to forego a voice-controlled co-driver. While the units are programmed to understand over a hundred languages, if you speak English as a second or third language, the system may not be able to recognize your accent. The same goes for rural or regional accents which would cause you to be misunderstood. The frustration might be more time-consuming than it’s worth.

But if you fall into one of these categories and love the idea of voice control, you don't have to discard the idea of a co-driver altogether. Improvements are being made every year, and you can take steps to embrace this new technology. In the meantime, if you’re determined to use this feature now, you can always ask your dealer or a friend to help you set up your system, and you can ask your car dealer to let you try a system to see if it understands your accent. This will enable you to make a better purchase.

It's estimated 67 million voice-assisted devices will be in use in the United States alone by 2019. So despite some obstacles, you can still let your voice be heard.

What can you do if there is false information on your credit report?

8/3/2018

While you can go on line and get your credit report, you have to understand the impact of what you are doing. First, you may or may not be able to get your report cleaned up. You need to request a copy of your report by sending a request through the mail, not the internet. You need to look on the Credit Reporting Agencies’ websites for a physical address to use. Once you get the address, prepare a letter to the CRA. You may have to provide your full name, current address, birthday, and social security number. Send your request by certified mail so you know the CRA received it.

Once you get your report, go through it carefully. If it contains wrong information, you will have to write back asking that the wrong information be removed. You should provide copies of any proof the information is wrong.

You should then write a letter to the company that gave the CRA the information (the furnisher). Let it know the information is wrong, and it should tell the CRA to take the information off your report. Remember, the company probably doesn't know who you are. Do not assume the person who opens your letter will know your account number or what you are talking about. Be very clear in your explanation of what is going on and what you want them to do.

You will then have to wait to see what the CRA and the furnisher will remove from your report. If everything you want removed comes off, then that is all you can do. As I said in the beginning, you have to understand the impact of your actions. You see, under the law, you cannot receive any damages until you have given the CRA an opportunity to fix the mistakes. They have to do a "reasonable investigation". If they do so and take the wrong information off your report, they are not liable for any damages. If you tell them the report is wrong, they don't take it off and then you try to use your credit but are turned down or you get a higher interest rate, then you may have the right to sue the CRA and the furnisher.

Here is another rub. Your request for a reinvestigation has to be to the CRA. When you go to a website for your report, you may actually be going to another company. If you complain to the company and then sue the CRA, the real CRA will say you never gave it the opportunity to fix the report so your lawsuit will get thrown out. Thank Congress and the CRAs for this neat trick.

I hope this helps. Good luck.

What should I do if I'm blocked in and feeling pressured to buy a car?

7/24/2018

When I started practicing, I heard about car dealers wanting to appraise someone’s trade in. When the dealer got the keys to the car, he would throw the keys on the roof [DC1] of the dealership. The idea was to make the customer feel helpless to the point he felt he had to buy a car.

In a yo-yo transaction, the dealer will require the return of the car if it cannot sell the retail installment sales contract. If a customer comes back to discuss the matter, the dealer may try to block in the car to keep the customer from leaving with it. In this situation, remember, the dealer may be the wrong doer.

Do not become the wrong doer. Don’t start yelling, throwing punches, or damaging cars. The first thing you could do is politely request that the dealership move the cars blocking you. If that does not work, move up the chain to a higher manager. If that does not work, keep moving up until you get to the general manager. I would expect all the managers to support their employees; however, you don’t know until you ask.

The next step might be to call the police. Understand that the police usually do not want to get involved in what they call “civil” matters; however, taking your property might be considered a theft. Hopefully, the introduction of the police will cause the dealer to do the right thing, but it is not guaranteed. If you still can’t get your car, you need to leave and contact a lawyer.

How do green cars work, and are they worth the price?

7/12/2018

It wasn’t so long ago that “green” cars were still a novelty. Now, you probably see several of them every day. It’s not really fair to lump environmentally-friendly cars into one category – there’s such a variety. You can purchase a battery-powered electric vehicle, a hybrid vehicle that uses both battery power and gasoline, compressed air vehicles, and even natural gas vehicles. While it may seem overwhelming to navigate through all the information that exists on these cars, it can be extremely worthwhile – eco-friendly cars can get a fuel-economy of up to 650 miles per gallon (or the equivalent for non-gas vehicles). Remember that old Ford sedan you drove ten years ago that got twelve miles per gallon if you were lucky? This isn’t that.

Less fuel means more money left over in your pocket, which is a good thing considering these cars don’t come cheap. In the lower- to mid-range, you can pick up something like a 2017 Hyundai Ioniq EV for about $29,500, and on the high-end, there are cars like the all-electric BMW i3 ($44,450) and Tesla Roadster ($200,000+). If you’re not a big spender looking for a luxury vehicle, you can expect to pay about $30,000. Because these cars are much better for the environment, many states offer generous tax credits to people who buy them – so you can expect to get about $2,500 to $7,500 back that way. In the long run, you’ll probably pay as much as you would for a gasoline-powered vehicle, but at least you’ll do less damage to the environment.

Do you drive a clean energy vehicle? How much did you pay, and did it save you money long term?

What Ditching Diesel-Cars Will Mean To Those Who Currently Drive Them

7/5/2018

If you own a diesel fueled car, you may be shocked that automakers are now phasing out the once popular fuel system. Toyota, Fiat, Volkswagen, and Porsche are among the most noticeable manufacturers to announce diesel phase outs, mainly due to the emissions testing scandal that hit the industry hard in 2015.

Many diesel drivers chose their vehicles because they were touted as low emission cars that were less polluting. When tests later revealed that emissions-test cheating software had been installed, these owners realized the vehicle they chose was, in fact, causing more pollution than their gasoline-fed counterparts.

What does the end of diesel vehicle production mean to those who currently drive them? In a word, nothing except for the knowledge your car isn't as ecologically friendly as you believed when you bought it. Several manufacturers, including General Motors, Mazda, Jeep, and Mercedes Benz, still plan on producing diesel engines so, as a whole, they will be available in the foreseeable future.

Even if diesel vehicles do become a thing of the past, diesel fuel will still be available for the foreseeable future as the demand for the fuel remains strong. A 2017 annual consumer fuel survey conducted by NACS (National Association of Convenience Stores) indicated that 45% of car owners said they would considering purchasing a car powered by diesel fuel, citing better fuel economy.

Although diesel drivers must come to terms with the fact their car is spewing far more emissions than they originally believed, they can look ahead for a much cleaner technology. Fiat Chrysler plans to have most of their offered vehicles to be either hybrid or fully electric by the year 2025, and the auto industry projects the cost of electric vehicles to be the same as gas powered cars by that year. Due to technological advances and falling battery costs, by the year 2040, a full one-third of the world is projected to have electric vehicles so, possibly, gas-powered cars will be quickly joining diesel cars as vehicles of the past.

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