Summary: You might have been duped if you think you paid for services or goods you didn't desire when you bought your car. Don't hesitate to get in touch with the Allen Stewart, P.C. fraud attorneys for a free assessment of the viability of your prospective fraud claim. 

[11th November 2022, Texas] When auto dealerships inflate the monthly payments due by a potential customer, this practice is known as "payment packing" or " car buying contract." According to statistics from the National Automobile Dealers Association, the issue has recently gotten worse as the average vehicle's gross price represents a decreasing percentage of its selling price each year. 

Other potentially misleading practices include erroneously raising your interest rate, unfairly inflating the cost of a new car, or secretly lowering your down payment. Further payment packing acts cross the line into illegality after the dealer examines your credit report and publishes the sale price, term loan, and finance rate. Before presenting any additional back-end items, the dealership's finance manager is legally required to disclose the vehicle's base payment; otherwise, they unlawfully make the car buying contract. The finance manager should reduce the monthly payment to the original, accurate amount if you reject these back-end items. More dishonest dealers, however, can decide to make up the difference by increasing the price of the automobile or lowering the value of your trade-in.

Long-term, payment packing costs consumers a lot of money. Throughout a 60-month loan, an additional $50 in monthly payments could cost a borrower $3,000. 

Although some goods, such as GAP insurance or an extended warranty, can be very helpful to the consumer, they are not necessary purchases, and customers must be given the option to purchase them. 

When a car buying contract forces customers to purchase unnecessary extras as a requirement for even purchasing the car, or when it fails to disclose to the customer what they are paying for on the car purchase contract, it may violate consumer law. The key is the deception: if the dealer misleads you about what is included in the car buying contract or claims he cannot close the deal without the add-ons, you may be able to claim unfair business practices. 

Allen Stewart thinks it's an honor to assist you and your family in pursuing justice. They appreciate your trust in Allen Stewart, P.C. Call Allen Stewart if you believe you are a victim of vehicle fraud. The advice session is unpaid.

Visit https://www.allenstewart.com/practice-areas/auto-fraud-attorneys/what-is-payment-packing-fraud/ for additional details on how to prevent payment-packing scams. 

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Innocent individuals and entire communities need a strong, successful champion when big business threatens their interests. Allen Stewart is dedicated to protecting the rights of people who have been hurt by others and is one of the country's top toxic tort lawyers. Allen Stewart is one of the top toxic tort litigators in the country, and his client triumphs are supported by some of the most prominent awards and certifications in the legal sector. The National Law Journal designated Allen Stewart as one of the Most Successful Young Litigators in America. 

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