where the dealer offers to lease or a purchase payment that is higher than the vehicle’s valuation.
Payment Packing or Deal Packing is a common type of auto dealer fraud. It occurs when an unsuspicious consumer is offered a monthly lease or purchase payment that is more than a vehicle’s actual valuation. Therefore, the salesperson or finance manager deceitfully offers “free” or add-on products at a discount to retain the inflated profit.
The add-ons offered usually consist of aftermarket items that the vehicle’s warranty doesn’t cover and other services that offer little to no value to the buyer.
Deal Packing happens when the sales department sends the inflated payment to the finance department to sell additional services and aftermarket items such as insurance, warranties, service contracts, theft deterrents, and even security systems.
The manager applies the pre-purchased profit against the cost of additional items to make them seem like real bargains or values. When the finance department has “pre-sold profit” and the buyer refuses to purchase any additional items even if they are offered at a very low discount, the customer may be given one or some of these items for free so that the dealership can retain whatever additional profit is left.
Even highly educated buyers become victims of Payment Packing and Deal Packing, suspecting it to be a legitimate bank offering.
As per law, every item sold to the customer must be clearly stated on the car-buying contract. If you were buying a vehicle and offered an item for purchase, but it is not listed on the car-buying contract, you have most certainly been a victim of Payment or Deal Packing. Another indication that you are a victim of fraud is when you are offered a product or service for free. Many buyers assume that the dealer is offering a service as a friendly token of goodwill, but the item was already pre-sold to them without disclosure.
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About the company
Allen Stewart is a professional law firm that provides legal services in various cases, including auto-fraud and lemon law. The team of attorneys is highly experienced in all aspects of lemon law and would provide you with a speedy resolution in your case.
Address: 1700 Pacific Avenue Suite 2750 Dallas, Texas, 75201
Phone: 214-965-8700; 866-440-2460