New Jersey Lemon Law Lawyer Blog

Self-Help Repossession

Usually, the agreement will permit the finance company or bank to take the vehicle by self-help repossession without any further definition. The Uniform Commercial Code also permits a secured party to take a piece of collateral or the vehicle by self-help repossession. Again, self-help repossession is not specifically defined, however, must be deemed obvious in light of the relationship between the parties.

Self-help repossession is where the finance company ‘helps themselves’ to take the vehicle back.
One common question is whether or not there needs to be a notice to the owner of the vehicle prior to the ‘self-help repossession’. There is no requirement under the Uniform Commercial Code and there is usually no requirement under the written agreement between the parties. However, if the written agreement between the parties indicates there must be a type of pre-repossession notice, they must conduct same. If there are various calls between the parties with regard to late payments, this is not deemed and cannot be deemed a requirement but rather an attempt by the finance company to have the lessee or driver of the vehicle make payments.

Repossession law in the State of New Jersey

How to Sue a Car Dealership

The answer of how to sue a car dealership can take up an entire novel so the best I can do is break it down, piece by piece, to as to understand the complex nature of this litigation.

INSURANCE

The first thing you need to understand is 1) whether there is insurance and 2) the type of coverage.

Initially it is tough to determine the answer to these questions even after years of litigation these cases. These is actually insurance to cover these cases, consumer fraud and negligence, but it can be limited. I will also tell you that you can never tell even by the size of the dealer, whether type have insurance. Many dealers, even the big ones, have chosen to go it alone and not have insurance.

There are basically two insurance companies that have this coverage, including Zurich. The insurance for consumer fraud (usually) only provides for payment of counsel fees and not indemnity. This means of you receive a verdict against the dealer the insurance company does not have to pay, but rather the dealer. BUT certain allegations are covered by insurance such as negligence and TILA (Truth In Lending Act) and as such the insurance company will pay you to settle or even on a verdict for these allegations. Obviously,if permissible in good faith you can allege TILA and negligence the chance of settlement is greater since the insurance company will probably to the settlement. The cost of the dealer's lawyer is covered under the basic policy so the dealer has little or no incentive to settle with this policy since their lawyer is being paid and they have to pay out of pocket to resolve the case. This is an important concept to understand and results in the complete litigation of these case because of the insurance coverage.

The point is you have to be ready to try these cases and need to be prepared because many times they do not settle

The New Jersey Consumer Fraud Act is to be Watered Down, significantly.

New Jersey has one of the strongest Consumer Fraud Acts in the United States.

There is pending legislation to change the Consumer Fraud Act and make it easier to avoid civil penalties for fraud.

The changes include provisions to exempt "out of state transactions" from the protections of the act.

The changes include the limitation on attorney fees.

The changes include the requirement for detrimental reliance AND makes treble or triple damages optional.

There are no real disincentives to discourage fraud. This bill encourages bad business practices.

THE TRUE COST OF FRAUD IS TREMENDOUS

CARTON AND RUDNICK

Anti Consumer Bill: New Jersey to Welcome Corrupt Businesses

Amy Handlin and John McKeon are sponsoring an anti consumer bill that would change the business landscape in New Jersey.

A key provision of the new New Jersey Consumer Fraud Act would exempt out of state transactions. This means the following. If a someone in New Jersey commits consumer fraud upon a non resident (living in NY, PA or CT) there are no consequences.

"a. apply only to transactions that take place in the State"

The Consumer Fraud Act would encourage businesses to travel to New Jersey to deceive people in other states on the internet or otherwise.

This bill makes consumer fraud easier and will encourage corrupt businesses and individuals to come to New Jersey where they will be protested. Amy Handlin is the co sponsor.

Car Salesman and Dealerships to be Protected with Proposed Changes in Consumer Fraud Act.

Amy Handlin and Jack McKeon have sponsored and introduced ANTI CONSUMER legislation to reduce consumer rights and protect car dealerships.

The changes in the Consumer Fraud Act would exempt or limit liability against businesses that are already regulated such as car dealership. It would also limit liability for consumers who consummate out of state transactions. This arguably contradicts other legislation that has been introduced to increase liability for those committing consumer fraud

CRACKDOWN ON INTERNET FRAUDS

The combination of these two laws would probably create conflicts and a haven in New Jersey for fraudsters.

CHANGES IN THE NEW JERSEY CONSUMER FRAUD ACT TO PROTECT CAR SALESMAN

Amy Handlin is the co-sponsor on this bill to protect car salesman

John McKeon is the primary Sponsor on this bill to protect car salesman

There is a bill pending in the Assembly which significantly and permanently change the way that businesses transact business in the State of New Jersey and the rights afforded to consumers. The bill is labeled [A3333] and if passed by the legislature and signed by the governor that would forever and permanently damage the rights of New Jersey consumers. There are various and daunting adoption in consumer rights in this bill. Unfortunately, this bill is sponsored by a democrat and a republican.

Initially, the substance of this bill would reduce consumers’ rights to proceed on claims against car dealerships.

A nickname for this bill should be the Car Dealership Protection Act. A major portion of the exemptions written to this bill would exempt businesses who were regulated by other agencies and/or authorities. This means that a car dealership who would be regulated by the Banking and Insurance and the Division of Motor Vehicles would likely be exempt from the protections that consumers have under the New Jersey Consumer Fraud Act.

Hypothetically, if a car dealership were to have to a new car on their lot, crash it and sell this vehicle which was damaged, the plaintiff would be without rights under the New Jersey Consumer Fraud Act. This would mean that an individual could not sue the direct car dealership for consumer fraud and seek attorney’s fees and triple damages. The car dealerships would gain significant protection if this bill were passed. This bill is definitely and certainly anti-consumer in every way, shape and form. This bill would protect businesses that engaged in fraudulent acts to the detriment of consumers.

It would force the conduct of businesses to be reduced to the lowest common denominator. In effect, the businesses that were acting honestly and within the law would be encouraged and forced to act in the manner inconsistent with the law as a result of the competition with the illegal or improper businesses. This is anti-competitive and will cost New Jersey consumers a significant amount of money. There would be almost no consequences for violating the law.

COMPLIANCE WITH ATTORNEY GENERAL’S SETTLEMENT

As previously reported on the internet and through the Division of Consumer Affairs, specifically four Sansone dealerships signed a consent agreement with the state to cease various business practices. Interestingly enough as part of the settlement, there is a complaints program. The defendants in the lawsuit are required to submit a copy of the consent judgment to its officers, directors and owners within 30 days of the settlement and then within 45 days, the defendants shall provide the state with proof that they have been supplied a copy of the consent judgment with an alphabetic list of the names.

Then within 60 days, the specific Sansone dealership shall provide the plaintiff with a memorandum detailing the specific policies and procedures within the advertisements and websites required by the motor vehicle advertising regulations as compliance as part of the consent judgment. The dealerships are required to make available for inspecting and copying at no cost to the plaintiffs all policies and procedures applicable to this portion of the settlement.

This is significant. If now a consumer were to institute suit against Sansone for one of the actual or legal theories which were covered as part of the state investigation and settlement, Sansone would effectively be on notice and in essence, have committed an intentional violation of the law. If the officers and directors are required to know, required to review the appropriate compliance procedures and policies to make sure that the program is followed, the only reasonable conclusion would be that Sansone would be aware of any of the appropriate violations. You would think that this would be unnecessary as part of running a dealership but apparently it is not.

There is consent judgment. There has been extensive information in the news about the four Sansone dealerships in the Sansone Auto Network who have recently signed a consent judgment with the state. What is this? Consent judgment is in essence a settlement agreement. Apparently the subject dealerships and the state have agreed to a settlement of the matter. In an ordinary lawsuit, there would be a settlement agreement signed between the parties and the payment of moneys. That is for an individual lawsuit between individual parties, not a state entity. However, in this matter, the state is an entity and I must assume that the state would not go with a simple settlement agreement but wanted a consent judgment.
In my opinion, the difference is that it is an official matter of public record rather than a settlement agreement which many times can be confidential. Nonetheless, a “judgment” under the law gives a significantly more effect than just a regular settlement agreement. But for practical purposes, they are the same thing.
What usually occurs in these cases is that the Division of Consumer Affairs or the state gets various complaints from numerous consumers against a particular dealership. The state then investigates these complaints risen or filed by the individual consumers. After these complaints are accumulated, the state will file a lawsuit against the particular dealership or entity and ultimately try the matter if it cannot be resolved. Obviously the resolution of one of these claims is by a consent judgment.

In this case an arbitration was filed against the dealer because it was alleged that they refused to return the deposit after the plaintiff returned the car. No return of deposit.

CONSUMER FRAUD

The petitioner was forced to enter the transaction when she was told that her first transaction was not approved for financing. They told her that she would not receive the deposit of $2,000 returned but they told her that she would receive credit towards the next transaction. She did receive that credit on the next transaction although she did not to purchase the vehicle or have any dealings with the defendant but had no choice. The failure to return the money after the cancellation of the contact by the respondent constitutes unconscionable conduct if not out right conversion. The representation that she would not receive her money when the transaction was cancelled by the dealer constitutes and affirmative representation. Then when petitioner defaults on the payments the car is repossessed and no post repossession notice is provided and there is not post sale accounting. It is unknown what occurred to the car, whether the defendants used it for personal purposes or profit. Without proof we must make such assumptions.

The New Jersey Consumer Fraud Act, N.J.S.A. 56:8-2, states:
“Any act, use or employment by any person of any unconscionable commercial practice, deception, fraud, false promise, misrepresentation, or the knowing concealment, suppression or omission, of material fact with intent that others rely upon such concealment, suppression, or omission in conjunction with the sale . . . or with the subsequent performance of such person as aforesaid, whether or not any person has, in fact, been misled, deceived or damaged thereby, is declared to be an unlawful practice.

All of the remedies are cumulative to any remedies that are available to claimants, such as those contained in the Uniform Commercial Code.
56:8-2.13. Cumulation of rights and remedies; construction of act
The rights, remedies and prohibitions accorded by the provisions of this act are hereby declared to be in addition to and cumulative of any other right, remedy or prohibition accorded by the common law or statutes of this State, and nothing contained herein shall be construed to deny, abrogate or impair any such common law or statutory right, remedy or prohibition.
CONVERSION OF PLAINTIFF’S $2,000
Generally, one who exercises unauthorized acts of dominion over the property of another inconsistent with or to the exclusion of the latter's rights therein is liable for conversion, although he acted in good faith and in ignorance of the rights of the owner. McGlynn v.Schultz, 90 N.J.Super. 505, 526, 218 A.2d 408 (Ch.Div.1966), aff'd 95 N.J.Super. 412, 231 A.2d 386 (App.Div.1967). Plaintiff is entitled to the value of the converted property, $2,000. The general rule with regard to the measure of damages in conversion is to award the fair and reasonable market value of the property at the time of conversion. Chemical Bank v. Miller Yacht Sales,173 N.J.Super 90, 99-100 (App.Div 1980).

WRONGFUL REPOSESSION

The dealership has violated every provision of the Uniform Commercial Code pertaining to repossession notice and dispossession of collateral actionable permitting the plaintiff to recover statutory damages as permitted under the Code and punitive damages for conversion.
Repossession Requirements
N.J.S.A. 12A:9-610 Disposition
N.J.S.A. 12A:9-611 Post repossession notice required before disposition
N.J.S.A. 12A:9-612 Post repossession notice requirements
N.J.S.A. 12A:9-313 Notice contents
N.J.S.A. 12A:9-614 Notice contents
N.J.S.A. 12A:9-616 Explanation of deficiency
Penalties
N.J.S.A. 12A:9-625(c)(2) Damages are finance charges plus 10% cash price
N.J.S.A. 12A:9-625(e) Minimum $500 damages plus other contained in the

1. Do you find by a preponderance of the evidence that Defendant, xxxxx America, committed any unconscionable commercial practice, deception, fraud, false pretense, false promise or misrepresentation as I have defined in connection with the transaction involving the sale of the subject vehicle?

YES _______ NO _______ VOTE ________

Please go to # 2

2. Do you find by a preponderance of the evidence that Defendant, Paramus Dodge, committed any unconscionable commercial practice, deception, fraud, false pretense, false promise or misrepresentation as I have defined in connection with the transaction involving the sale of the subject vehicle?

YES _______ NO _______ VOTE ________

If 1 AND 2 were answered NO please stop
If 1 AND 2 were answered YES please go to # 3
If 1 was YES and 2 was NO go to # 3
If 1 was NO and 2 was YES go to # 4

3. What amount of money, if any, wills fairly compensation Plaintiff for ascertainable losses resulting from defendants, xxxxx America, conduct?

AMOUNT__________ VOTE___________

If # 2 was YES go to # 4
If # 2 was NO go to # 5.

4. What amount of money, if any, wills fairly compensation Plaintiff for ascertainable losses resulting from defendants, xxxxxx, conduct?

AMOUNT__________ VOTE___________
Go to # 5

5. Do you find that the Plaintiff has established by clear and convincing evidence that the defendant, xxxxx America, committed an act of Fraud

YES _______ NO _______ VOTE ________

If NO go to # 6
If YES go to # 7

6. Do you find that the Plaintiff has established by clear and convincing evidence that the defendant, xxxxx, committed an act of Fraud

YES _______ NO _______ VOTE ________

If YES go to # 8.
If NO go to # 7 if # 5 was answered YES. If # 5 was answered NO please stop.

7. What amount of money, if any, will fairly compensate Plaintiff for losses proximately caused by Defendant’s fraudulent misrepresentations?

$ ____________ VOTE __________

Go to # 8 unless # 6 was answered NO. If # 6 was answered no please stop.

8. What amount of money, if any, will fairly compensate Plaintiff for losses proximately caused by Defendant’s fraudulent misrepresentations?

$ ____________ VOTE __________

Please return Jury verdict sheet now.

Buying a car and consumer fraud, part 2

Many processes are used such as keeping people at the dealership for a long period of time, separating couples, confusing customers with various documentation and keeping them in the air. There are many, many dealership terms that characterized the types of process that are undertaken. If one were to think that negotiating a purchase of the car is simply speaking about the price and then getting the financing approved, they are mistaken. The dealership has various devices to ‘squeeze you’ for additional money and time. All of the squeezing that the dealership does ultimately breaks down your defenses and I have had many clients who have said I was there for so long, I just signed whatever documents that they put in front of me. This is exactly what a dealership is trying to do.
Therefore, if you are buying a vehicle, it is important that you go there when you are well-rested and taken aggressive attitude with the dealership and understand that nothing that they say can be trusted. If you take this approach and get aggressive with them and start asking questions of them to see what price they want and what financing they want and what interest rate they can provide, they will be on the defensive. Ultimately, the dealership knows that you can walk out of the dealership, go to another dealership across the street or down the road and get a better deal and cost them a sale. Dealerships count on certain percentage of all people entering the dealership to purchase vehicles. This is a known statistic by the dealerships.

Buying a Car and Consumer Fraud

Many consumers confide that buying a vehicle is one of the worst experiences of their life. Frequently, they come into my office and they are embarrassed and ashamed of the situation in which they have found themselves.
When one understands how a car dealership sells cars, there is a complete understanding of the circumstances leading to a vehicle purchased and there should be no reason to be embarrassed. Quite frankly, people do not understand the extensive processes at work when buying a car. Actually, the appropriate statement would be most people do not understand the processes at work used by a dealership to force the sale of vehicles. This process has been honed for many years for which the dealership employees at all levels have been trained. All levels of dealership employees including salesman, sales manager, finance and insurance managers, general managers and other owner representatives have been extensively trained in the process of selling cars.
The process starts in the advertisement. Nowadays, the internet, in my opinion, has overtaken the use of newspaper advertisements. This is step one to get interest in a vehicle whether it be through the internet or through newspaper advertisement or TV. The next step is to get the person into the dealership when they can use their training and skills to ‘convince’ a potential purchaser to purchase a vehicle. There are many tools that they use to gain a consumer’s confidence and trust the dealership representatives in the sales process. However, this is completely phony and consumers need to understand that they cannot trust these representatives in any way, shape or form. These representatives are using this trust as a coercion factor to get them to purchase vehicles.

NEW JERSEY DIVISION OF CONSUMER AFFAIRS

The New Jersey Division of Consumer Affairs, a subdivision of the Department of Law and Public Safety, provides an excellent website with links to all of the relevant New Jersey departments, links to all of the relevant inquiries pertaining to the Division of Consumer Affairs and current headlines or investigations undergoing or undertaken by representatives of the Division of Consumer Affairs. As an example, there are headlines on the site and the current headlines as of the writing of this blog indicate that there are various ticket sellers which agree to stop speculative ticket sales, a Hudson County Senior Fraud Education and Protection Program, a notice on chimney repair scams and an announcement that the state through Governor Corzine and Attorney General Milgram are going to provide consumers with titles when the dealerships have gone out of business. The Division of Consumer Affairs also has links to Division of Criminal Justice, Division of Civil Rights, Division of Gaming and Enforcement, Division of Highway Traffic Safety, Division of Law, Juvenile Justice Commission, New Jersey Racing Commission, State of Athletic Control Board, Division of State Police and Victims of Crime Compensation Office. There are also numerous consumer briefs which is public information which is extensive ranging from county office on aging to travel scams.

Can I sue if my car get repossessed?

The previous blog posted explains the nature and extent of the claims under wrongful repossession. However, one of the common questions is that I know I was late on my loan, missed a few payments and the vehicle was repossessed. The finance company contacted me and they demanded the entire company of the loan in order to obtain possession of my vehicle.
There is a basic theory under New Jersey law called good faith and fair dealings. One potential claim against the financing source under the circumstances would be that they are being commercially unreasonable under the Uniform Commercial Code. You could also assert that they are not complying with their obligation to act in good faith and deal fairly. Under New Jersey law, a lender in the context of a repossession and redemption need to be commercially reasonable. In addition, there is an obligation that they deal with a consumer or customer in good faith with regard to the contract which was in place between the parties. Both of these situations require the application of the good faith and commercially reasonable doctrines. If one were to argue that this would be an appropriate basis for liability, the damages section set forth in the prior blog pertaining to the wrongful repossession would apply.

Expedited Consumer Arbitration in the American Arbitration Association

It is well-known that a majority of dealerships albeit big or small, use standard arbitration agreements contained in all their contracts. Frequently, dealers who use arbitration agreements in various places and various documents such as a buyer’s order, a warranty, a retail installment sales contract or a generalized and completely separate consumer arbitration agreement.

Generally, the arbitration clauses permit a selection of various “neutral” entities to resolve the dispute. The three most frequently used arbitration forums are National Arbitration Forum, American Arbitration Association and JAMS. It is now unlikely as a result of recent developments that anybody will be using National Arbitration Forum to resolve these disputes. This will be subject to a later post. Both JAMS and the American Arbitration Association have specialized, expedited, consumer arbitrations for those who enter into a retail installment sales contract and wish to arbitrate a dispute against the dealer. Both the American Arbitration Association and JAMS have specific consumer due process protocols to assure that consumers get a “fair shot” in litigating their claims against the dealer.
Although the arbitration forums attempt to resolve these matters in a fair manner, it is understood that to reduce and costs and time associated with handling these matters, frequently, a potential litigant loses many discovery rights which are guaranteed in the court system. In the American Arbitration Association consumer expedited arbitrations, any and all discovery is at the discretion of the arbitrator. This means that an arbitrator might or might not permit interrogatories, a demand for documents or depositions. In my experience, they will not permit depositions in the ordinary course. On occasion, they do permit interrogatory questions to be propounded, however, almost always permit an exchange of documents and exchange or witness names. The arbitrator and the expedited consumer rules do permit the issuance of subpoenas to permit the acquisition of various documents which might be somewhat difficult to obtain from the defendant. The American Arbitration Association frequently runs seminars or webinars pertaining to the appropriate methods by which to file both commercial and consumer arbitrations. The consumer always has the right to file an arbitration outside the expedited consumer rules. However, if this occurs, the commercial rules kick in and the filing fees are extensive. However, with commercial arbitrations, the discovery is significantly more customary including depositions and interrogatories.

Rulings in Arbitrations. The American Arbitration Association consumer rules do not require reasoned awards. A reasoned award is one which the attorney or judge sitting on the case explains the ruling. And a non-reasoned award which is customary in consumer expedited arbitrations is simply an amount and a declaration of the liability. Sometimes, it is less than this. Consumer arbitrations have some advantages and there are some disadvantages as well as and it is important to get an attorney who is an experienced litigator to handle such a matter.

Under the relevant due process inquiry, the forum state's exercise of jurisdiction must be reasonable, which is measured by the “minimal contacts” doctrine, a threshold requirement for specific personal jurisdiction. Hanson v. Denckla, 357 U.S. 235, 251, 78 S.Ct. 1228, 1238, 2 L.Ed.2d 1283, 1296 (1958); International Shoe v. Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95 (1945); Waste Management, supra, 138 N.J. at 119-20, 649 A.2d 379; Lebel, supra, 115 N.J. at 322, 558 A.2d 1252. Minimal contacts requires “that there be some act by which the defendant purposefully avails itself of the privilege of conducting activities within the forum State, thus invoking the benefits and protections of its laws.” Hanson, supra, 357 U.S. at 253, 78 S.Ct. at 1240, 2 L.Ed.2d at 1298. Under a specific jurisdiction analysis, the minimum contacts inquiry must focus on “the relationship among the defendant, the forum, and the litigation.” Shaffer v. Heitner, 433 U.S. 186, 204, 97 S.Ct. 2569, 2579, 53 L.Ed.2d 683, 698 (1977); Lebel, supra, 115 N.J. at 323, 558 A.2d 1252.

In applying the “minimum contacts” test, we focus on the relationship among the defendant, the forum, and the litigation. The “minimum contacts” requirement is satisfied so long as the contacts resulted from the defendant's purposeful conduct and not the unilateral activities of the plaintiff. This “purposeful availment” requirement ensures that a defendant will not be haled into a jurisdiction solely as a result of random, fortuitous, or attenuated contacts. The question is whether the defendant's conduct and connection with the forum State are such that he should reasonably anticipate being hauled into court there. Lebel v. Everglades Marina, Inc., 115 N.J. 317, 323-24, 558 A.2d 1252 (1989)

Both the Appellate Division and the New Jersey Supreme Court have held that the seller of retail goods in another state is subject to the jurisdiction of the State of New Jersey. The Supreme Court specifically held in Lebel v. Everglades Marina, Inc., 115 N.J. 317 (1989) that, “In comparison, the marketer of a big ticket luxury item that accomplishes the sale by solicitation of out of state buyer in the buyer’s state can fairly be expected to contemplate that a breach of contract will expose it to a suit in the forum of the buyer. We thus find this does not offend our notions of substantial justice and fair play to ask the seller of this special order, Luxury Vessel to account for its negotiations of the transaction in a New Jersey court”
In Accura Ziesel Machinery Corp. v. Timco Inc., 305, N.J. Super, 559 (App. Div. 1997), the Appellate Division held that a seller of goods in the State of Tennessee is subject to the jurisdiction in the State of New Jersey by placing their goods in the stream of commerce accompanied by other contacts with the State of New Jersey.

What is UDAP?

Unfair and deceptive Practices Acts. The New Jersey Consumer Fraud Act would be considered a UDAP statute. The purpose is to assist consumers in battling fraud in the market place and provides several protections top consumers that are meant to encourage consumers to bring suit and attract competent lawyers to litigate the cases. The UDAP statutes include provisions for tripled damages, attorney fees and injunctive relief. The State AG's office is also permitted to bring suit under the Consumer Fraud Act.

The UDAP statutes vary significantly by State, with some providing more protection that others. There is a published report indicating the strength and weaknesses of all the statutes for all of the 50 states. The report indicates that Michigan and Rhode Island are the two weakest statutes because the courts have interpreted tham to cover almost no transactions.

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State sues certain Sansone dealerships

Complete story

Sansone Ford Lincoln Mercury
Sansone Dodge in Ocean Township
Sansone Chevrolet
Sansone's Route 1 Auto Mall in the Avenel section of Woodbridge

According to the story the Sansone Dealership failed to disclose the condition of the vehicles

The Ag's Office was quoted as saying

"There is no doubt that consumers would want to know and must be told about prior damage to, and fleet or rental use of, a vehicle that they are considering for purchase,"

To be fair to Sansone and the Ag's Office the law in each of these areas need to be addressed specific posts.

What are the laws on damage and disclosure?
What are the laws on Consumer Fraud?
How is the State lawsuit by AG different than a normal persons civil lawsuit?
What is a consent order and how does it affect Sansone Dealerships?

How can I get a copy of the complaint?

There is a presumption of innocence because the State has to prove a case like any other plaintiff and until proven these are only allegations are only that. I am certain the allegations are denied by the lawyers and the dealers involved. This is why we have trials to make these determinations of innocence or non innocence.

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New Jersey Division of Consumer Affairs

The State has a great site dedicated to Lemon Law in the State of New Jersey.

There is a list of publications at the Division of Consumer Affairs site.

File a complaint

Licensing Board information.

Division of civil rights

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Car repair scams. Car repair scams are everywhere.

How do you protect yourself from car repair scams. There is no easy answer because unless you a mechanic you are at the mercy of the mechanic. I would say the following are the most common types or areas where car repair scams proliferate.

Padding The Bill. Do we know what was actually completed?

Transmission Shops. What really is the condition of the car

Other charges. What are the minor charges that you do not recognize.

Cost What is the real cost of the repairs

In order to assist you I found a web site that addresses all of these issues ans would recommend a thorough reading.

What is the law on car repair and car repair scams.

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Continue reading "Car Repair Scams" »

Car Salesman Code Words

Car Salesman have code words for many situations and they are not flattering. Most imply that are maximizing the profit or poor negotiating skills of the salesman. They are real.

(from edmunds.com)
Be-backs - A customer who leaves the car lot promising to return later, saying, "I'll be back," or some variation of that statement. "The guy was a be-back. But I think he meant it. I'll see him again."

Boss - The typical way that salespeople address the managers or the GM. "Hey boss! Got a deal for you!"

Bumping - Raising the customer's offer for a car. "If Mr. Customer says he only wants to pay $250 a month, just say, 'Up to -- ?' He'll probably bump himself up to $300 without you doing anything."

Closer - An experienced salesman who is brought in to "close" the customer by making them agree to a deal. "If I worked with a better closer I'd have more units on the board."

Desk - This is the sales manager, not the place he sits. "Ask the desk if these rebates are still in effect."

Demo - This is the test drive. "This guy comes in, demos the car and I think he's ready to buy, right? Then he tells me the car's for his wife and he can't make a decision without her."

F&I - This stands for the Finance and Insurance office where the documents are signed. The F&I salesperson usually will push products such as extended warranties, fabric protection and alarms. "The wait for F&I is two hours. Better stick with your customer so they don't leave."

Full pop lease - This is when a vehicle is leased at 110 percent of the sticker price - the highest amount allowed by most banks. "I got them into a full pop lease. I'll get a nice voucher for that."

GM - The General Manager. The GM is the head honcho at the dealership. He runs the business from day to day. "The guys were standing out on the curb drinking coffee so the GM called them into the tower and read them the riot act."

Green pea - A new salesperson. "The funny thing is, green peas can outsell the veterans. That's because they don't know how hard this job is."

Grinder - A customer who negotiates for hours over a small amount of money. "We were only $500 apart but the guy wouldn't sign. Man, what a grinder."

Lay down - A customer who takes whatever deal the salesperson offers. "I quoted him monthly payments of $575 and he took it! I wish all the customers were lay downs like that."

Mini - The commission on a deal where the car was sold at close to invoice price. "Sure, the deal was only a mini. But I qualified for a weekend bonus and made a grand."

Mooch - A customer who wants to buy a car at invoice. "People are spending too much time on the Internet. It's turning them into a bunch of mooches."

Packing payments - Adding extra profit to the cost of a car. "This place I used to work got busted for packing payments. Next job I get is going to be in a no-haggle store."

The Point - The place on the car lot where the "up" man stands looking for customers. "The GM saw me standing on the point with my hands in my pockets. He went ballistic and sent me home for the day."

Pounder - A deal with $1,000 profit in it. "Doctor comes in and buys the top of the line model, fully loaded - and he pays sticker! That'll be a two pounder for me."

Rip their heads off - This describes taking a customer to the cleaners. "I stole their trade in, I sold them the car at a grand over sticker - I mean, I just ripped their heads off."

Roach - A customer with bad credit. Not to be confused with the "roach coach" (see entry below). "The guy looked good. But we ran his credit and he turned out to be a roach. We're talkin' a 400 credit score here."

Roach coach - The food truck that comes around to the dealership every day. "I should've known better than to eat that chili from the roach coach. My stomach's killin' me."

Spiff - A tip, kickback or payment of any kind, usually cash which is handed between salespeople. "I spiffed the F&I guy $20 bucks and he took my customers first."

Strong - This has a special meaning on the car lot. It means holding firm on your price and being a tough negotiator. "When they ask for your price you have to be strong. Hit 'em with high payments, then scrape them off the ceiling and start negotiating." (See also "weak.")

Tower - The office where the sales managers work. This is usually a raised platform allowing the managers to see over the roofs of the cars so they can watch customers and their salespeople. "Attention: All new car salesmen report to the new car tower!"

Turn over - Also known as "turning," this is the practice of passing a customer from one salesman to another. It is thought that this will prevent customers from leaving the car lot. The theory is that the customer might just have bad chemistry with the first salesman and he might like the next salesman. "I turned this guy to my partner and he wound up buying. I'll get half of the commission on the deal."

Up - A customer that walks on the car lot. The term probably comes from the order in which customers are taken, as in: "I'm up next." Many dealerships also have an up system. "We've got ups all over the lot, and you're in the back drinking coffee?!"

Voucher - Car salespeople receive a voucher to let them know what their commission was for selling a car. They don't know until the deal is finalized exactly how much they will receive. "Check out this voucher. I thought I had a pounder. Instead it's a mini."

Weak - This describes being a weak negotiator or coming down too quickly on price. "The guy was weak so he only lasted a few months. How are you going to make money in this business if you give away cars?"

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