By Ohio law you must disclose to the customer their exact payment before going into finance department. No ranges can be given for this exact reason. They use what is called a bridge or legging the customer. Their from for doing so is called a Purchase Summary form and if you pulled every single deal that they have eve written you will see this form and every form has this tactic! This form has some basic information including name, date, stock number? Type of car, down payment, rebate, or any incentive, this also included three major things one a Manager signature, the customer signature and what is illegal a payment line.
Now by the Sate of Ohio's Law on this line must represent and exact payment.
It doesn't its says example one $233-$242 or example two $233.87-$266.97
These ranges allows the manager at the desk to structure a deal with numerous items that have to be disclosed in the finance department and sold upfront not included in their monthly payment.
When they go back to the finance department the customer are told that we are able to included in your monthly payment these items at no additional cost, if the finance manager has any issue with concealing this bridge they generally do one of two things. One is removing some of these items and rolling the difference into the rate, what happens then is the payment goes down so the customer thinks they are getting a great deal. But they are not There are items that are still in the deal that they do not want. Then the finance manager will try to not disclose the items that they know they do not want and pull what is called a line close or elbow close. Only disclosing minor areas of the contract that pretain to nothing like a signature line. Some cash deals in include GAP insurance, now now come on plain sense is what do you need GAP insurance for if you are paying cash? At least 60% of the customer return to complain about these issues? Many complaints but no action until now. Can you say higly illegal if you were to pull all their deals and look into the deal you will see everything. Oh not to mention the menu that they have to use but even the menu reflects the margin and allows them to even add more item for maybe 5-10 dollars more does seem much more huh? But it is when you started with $30-$60 in the payment of leg. Thats near 2k of items packed into the deal not including the difference of the interest you doo the math...
This dealership has four and they all sell in between 250-350 a month how many people actually know how many don't?
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