All Star Family Fords Sales practice was aimed to take advantage of someone unfamiliar with the vehicle buying process.
When I purchased a vehicle from All Star Family Ford they were not clear and deliberate as to what I was purchasing. Their sales practices were aimed to take advantage of my lack of knowledge about credit and the car buying process. I was not informed as to how a credit inquiry would affect my credit and furthermore I was not informed as to how many credit inquiries I would receive. All Star Family Ford requested an auto loan in my name causing 10 Hard Credit inquiries with 10 different banks that plague my credit and I was unaware of this. Further more once a vehicle loan was acquired with a cosigner I was not advised that I was purchasing an Extended Warranty as well as GAP insurance on the vehicle. The Finance employee was very vague in explaining exactly what I was buying and signing for, and I was unable to understand it on account of my inexperience. None of the above was recognized until approximately a year later when my fiance analyzed my credit. The extended warranty was described as Tax Tag And Title fees. These practices do not seem to be illegal as far as I know however they are poor business practices and should not be accepted by the American consumer.
Compensation for Extended Warranty and GAP Insurance, and a Return at the purchase price of the vehicle.
All Star Family Ford appreciates the opportunity to respond to your concerns.
All Star Family Ford has multiple processes in place to ensure our customers are well informed prior to the signing of a contract. The bill of sale has a very clear breakdown of the charges and fees associated with the purchase of the vehicle. This includes the selling price, all fees, trade values, cash down, and trade payoff. Any additional warranty or GAP insurance are listed separately, after the total balance due. This information is also repeated on the contract. As an added measure, we make an audio/video recording of every transaction to ensure transparency.
From the credit inquiry standpoint, it is important to understand how credit inquiries actually effect your credit rating.
Several years ago, the credit reporting agencies changed their model on how multiple inquiries made in the same area (auto loans, mortgage loans, etc), in a short amount of time impact the credit score. They basically realized the consumer was not seeking to purchase multiple vehicles, but were simply looking for the best financial package available.
This is from the FICO web site: "most Credit Scores are not affected by multiple inquiries from auto, mortgage or student loan lenders within a short period of time. Typically, these are treated as a single inquiry and will have little impact on your credit scores."
There are many other factors that can negatively impact a person's credit score in a much more profound way, such as lack of credit, high balances on accounts, late payments, collections, etc.
With this being said, all warranties and GAP insurance can be cancelled at any time, and the prorated amount of insurance left will be credited against the amount you owe on the vehicle, however, the protection these insurances provide will no longer apply to the vehicle.