Auto backdating bank cash contract dealerships fraud rebate

But even with this offset for use, the dealership was facing millions of dollars in refund costs.

auto backdating bank cash contract dealerships fraud rebate-71

Hopefully, these and similar scenarios will benefit customers.

Finally, dealer incentives should not be confused with dealer holdback.

However, what triggered a wave of suits in California and other states is a 2002 case called the dealership, with customer approval, rewrote a deal and backdated the retail installment sale contract to the original delivery date (six days earlier).

The customer sued the dealership, and the case was filed as a class action.

In July of last year, a California appellate court handed down a very nasty, published decision that makes backdating retail installment sale contracts even riskier now than it was before.

I have been advising dealers not to backdate contracts for many years.

The longer a car collects dust, the more cash a savvy negotiator can save.

Dealer incentives are subject to local and regional variables.

Related: Buying Advice Remember, dealers pay to keep vehicle inventory in stock.

So even if an incentive isn't attached to a particular model, dealers are more likely to be flexible on pricing for a vehicle that's been on their lot for two months or more.

Most dealerships see holdback as something that they're entitled to.

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