It's been so long since I bought a vehicle from a car dealer that I can't recall the details, but every day, people, especially young people with no experience and little credit history, sign their name to vehicle and loan documents they don't quite understand because they need a car. Unscrupulous car dealers with F&I (finance and insurance) departments see these customers as easy prey for car enhancements, loan enhancements, extended loan terms, and service plans they don't need. Once they settle on a vehicle, the buyer could be kept for hours until they will sign anything to get the deal done.
The process for doing this is so common that it can be spelled out in a timeline, which may sound familiar, especially if you have been through the experience. Jase Patrick was taken advantage of, and later went to work for a car dealer and learned the ins and outs of wringing extra dollars from an unsuspecting buyer. Then he became the F&I department's worst enemy, advocating for new regulations against the nefarious practices that make buying a car an ordeal that damages one's budget, credit history, and trust. Read about the most common F&I scams and Patrick's fight to make things right at The American Prospect. -via Damn Interesting
(Image credit: Mike W.)