Troops Dodge Bullets Only To Walk An Auto Financing Minefield

Members of the military do their duty day in and day out. Just like the rest of America, they want a nice car to drive and want to feel that they can expect an honest transaction when they buy one. That does not seem to be the case in several instances.

Some dealers who are near military bases have developed a reputation for inflating prices and padding interest rates on military car loans just to fleece young soldiers. ”When it comes to dealers that fly American flags and post signs that say ‘Welcome Military,’ consumer advocates often joke that the bigger the flag, the worse their practices are,” said Rosemary Shahan, president of Consumers for Auto Reliability and Safety, a California-based advocacy group.

A common practice is to give a price to a customer, tell them the expected interest rate, and send them home with the vehicle of their choice. Then, a few days later, call the soldier up with a story about how the financing is going to be at a higher rate and the dollar amount was off a little. The soldier is given the choice to return the vehicle, but some have found that when they return it, their trade in has been sold. They feel they have no choice other than to accept the new terms.

The best that dealership advocates can say is that there are a few bad apples, but nearly every military base in the country is aware of problem dealers in their vicinity. It does not seem like a few bad apples, but a concerted effort to take advantage of a group of young troops.