05/25/02
To Whom It May Concern:
My name is Luke. About a year ago my wife and I bought a car from Ugly Duckling car sales. They sold a car for 129% of what is was worth plus put a extremely high interest rate the car had been in an accident prior to our sale.
At the time we were not very smart about buying cars. Over the past year I have learned a lot about the car business and they are doing a great injustice to the people that don't know any better.
The way it works is as such. An normal financial organization will only allow a dealership an maximum of 110% of what the vehicle is worth with the best credit. Ugly Duckling buys cars from the auction at whole sale and they sell them in my case for 129% of the value of the vehicle.
They do this because they are the finance company as well. They can sell the vehicle for that much plus a very high interest rate because they don't have to abide by a financial institution, thus putting the customer so deep in negative equity that they have to pay the entire loan. I have tried to trade my vehicle in, but like I said I have too much negative equity and since it was in an accident prior to my buying it is now worth very little. I have contacted them and their response is well you signed the contract.
True I did sign, but I would have never signed if I knew I was getting ripped off ten fold. I think it only fair they drop the balance on my loan $2500.00, reason being they have ripped me off quit a bit of money and my trade is only worth $1000.00 because they replaced the hood and never told me when I bought it. Please advise me how you can help or let me know of someone who can help.
Luke & Kristine
Oldsmar, Florida
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