Has a dealership offered you a trade-in value or interest rate that seemed too good to be true? After purchasing the car, the dealership may call claiming the financing fell through, or had a problem. You may be a victim of “bushing” or “bush-whacking” lately shown in the local news. This is a common scam that involves luring a customer in with great offers, but later persuading them to sign for a less beneficial deal. If a dealership insists you must sign for a lower trade-in amount or a higher interest rate, remember that you do not have to sign!
The State of Washington passed an “anti-bushing law”, RCW 46.70.180(4), which states that financing for an auto loan must be completed within four business days, or the sale is void. This law also states that if financing is not accepted or falls through, the negotiations must start over. This means you can simply return the car and receive your deposit or trade-in back. Even if the dealership has already sold your trade-in, they must refund you the amount. Despite the law, the State Attorney General’s office received nearly 300 complaints from consumers between 2003 and 2007.
The best way to avoid this scam is to finance your car through an independent source, such as your local credit union. Remember that dealerships profit from high interest rates and low trade-in values. Financing through a credit union can ensure you will receive the best rates. Here at Olympia Credit Union, there are always available loan officers to meet with you personally, and work together to find a plan that fits you best. |
