There’s been a lot of media attention lately about the FTC coming down on car dealers for false advertising, and for good reason. In a recent FTC settlement, five car dealers around the country agreed to stop running ads in which they promise to pay off a customer’s trade-in – no matter what is still owed on the vehicle.
Most customers were completely mislead by the ads… the dealers were actually rolling any negative equity (where the loan balance was greater than the value of the car) into the new vehicle loan. When this happens, you’re not getting any sort of deal – you’re actually making the deal on your new purchase even worse! If you owe $10,000 on a car with a trade-in value of $7,500, then you’d end up inflating the loan on your new purchase by $2,500…
Even though the FTC has hit those car dealers with orders to stop, many other dealers continue to use this deceptive advertising tactic – beware of any dealer promising to pay off your current auto loan.
Lone Star Cars would never use any misleading tactic like this. We’re always completely straightforward and transparent with every single customer who we do business with. We’re absolutely dedicated to “doing things right” and taking care of our customers – we’re straight shooters, and we’re going to be open an honest about every car that we sell and every auto loan that we arrange.
If you have any questions about auto loans or the buying process, don’t hesitate to call our financing department at 972-612-2323. We’re here to help you understand everything fully – we’ll walk you through the entire process and make sure that you get the best deal possible.