Car Customer Battles Dealership Over Price Jump

— -- Dear ABC News Fixer: I needed a car to get to work so I went to a local car dealership.

The sales person told me the car would cost $15,000. I gave them $700 cash as a down payment, but I did not sign any papers. After the sales contract was prepared, the manager explained that with the finance charges and other items, the total cost would be about $25,000.

I was surprised by the higher price and changed my mind about the purchase. I told them I was sorry for wasting their time but I would like to get my $700 back. The manager said my money was already in the safe box and that I would have to wait until the next week.

Since then, I have been calling them with no luck. It’s been a month now and they keep giving me excuses. Please help.

- John Ochoa, Chicago

WATCH more from this ABC News Fixer story Sunday on "Good Morning America". And if you have a consumer problem, The ABC News Fixer may be able to help. Click here to submit your problem online. Letters are edited for length and clarity.

Dear John: This was so ridiculous we almost couldn’t believe it. You put down a cash deposit for a car but never signed a sales contract, and a month later you still didn’t have your money?

But sure enough, that’s what happened.

Thankfully, you had gotten a receipt for the cash they were holding. That helped a lot when the ABC News Fixer decided to pay a visit to the car dealership, Ultimo Precio on Chicago’s Northwest Side. It took several hours and a few well-placed phone calls to higher-ups at the corporate offices, but eventually they did come through and gave you a check for the full $700. We drove you straight to your bank to deposit it.

So what happened? The dealership group’s marketing director blamed an accounting error caused in part by the departure of a key employee. He apologized profusely and gave you a $50 prepaid credit card gift card to try to make up for the hassle.

The weird part is you did the right thing by taking some time to think about the deal and resisting any pressure to buy the car immediately. That was smart, because as you told us, you would have been really unhappy if you had signed a sales contract with that much debt.

So now you’re free to buy a car elsewhere. Here’s some advice:

• Before you hit the dealerships again, do some more comparison shopping on websites like ConsumerReports.org and Edmunds.com. Look at the long-term reliability of each make and model you’re interested in. The Kelley Blue Book site < www.KBB.com > will give you a good sense of what a used car of that type should cost.
• Talk to your bank or credit union about getting a loan. They might offer a lower rate than a dealership’s finance department.
• Never tell a dealer how much you’re willing to pay or how high your monthly payment can go. Focus only on getting a fair price for the car.
• Check out every part of the car thoroughly. Take a test drive and if you can, bring a mechanic friend along to check out the engine. More tips are HERE. And always order a vehicle history report!
• Finally, make sure you understand every word in the sales contract before you sign. Any promises a sales person made should be right there in the contract.

- The ABC News Fixer

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