A FOTONOVELA FROM THE 

FEDERAL TRADE COMMISSION

Manuel Avoids 

Car-buying Trouble
The Federal Trade Commission is the nation’s 

consumer protection agency. Its mission is to 

protect consumers from fraudulent and deceptive 

practices.

This fotonovela is part of the FTC’s ongoing 

efforts to help the Latino community avoid scams 

and stop fraud. For more information, visit 

www.consumer.ftc.gov/fotonovela.

Report fraud by calling 1-877-FTC-HELP or at 

www.ftc.gov/complaint.

ABOUT THE FTC

Manuel Avoids 

Car-buying Trouble
1

Thanks, Victoria.

Welcome to the show! 

Today we’re talking about 

how to avoid scams with 

consumer protection 

expert Nicolas Garcia. 

Welcome back, Nicolas!

Let’s get to our first 

caller. Manuel, what’s 

on your mind today?

Hi. Last month my wife and I were 

shopping for a car.
2

We saw a minivan we really liked and the dealer 

was offering financing so we applied.
3

I have great news! You can take 

the minivan home today. We 

just need to sign a few papers.

The kids are going to 

be so excited! 
4

What do you mean the financing 

wasn’t approved? We signed a 

contract. I thought it was a done deal.

Honey, what 

happened?

The deal fell through. 

We have to go back to 

the dealer.

A few days later, the finance manager 

called back about the financing.
5

He had another financing agreement with a higher 

rate and monthly payment. I told him I couldn’t 

afford it. But he started pressuring me.

If you don’t sign this 

agreement, you’ll have to 

return the minivan.

I can’t. It’s already for sale.

Manuel, maybe we 

should just sign it. 

Take it. I can’t afford it 

anyway. Just give me my 

car back.
6

I didn’t let him push me around. I said I’d report 

him to the Attorney General. He canceled the 

contract and we returned the minivan. Then he 

gave us our car and title and we split.

Wow, that’s unbelievable! Thanks 

for sharing your story, Manuel. 

Nicolas, do you see this a lot? 
7

The dealer might say you 

have to make a bigger 

down payment...

...or buy an expensive add-on like 

an extended warranty or service 

contract. All this drives up the cost 

of the vehicle.

...accept a higher annual 

percentage rate...

We do see it happen, 

especially when the 

buyer has poor credit.
8

Why would anyone sign a 

contract that makes the 

car more expensive?

Buyers are under pressure.
9

Some say they’ll keep your 

trade-in vehicle. 

If you don’t sign, the dealer 

might refuse to return your 

down payment.

Others threaten to file a 

police report saying you 

stole the vehicle! 
10

If the contract says the sale 

is contingent on the dealer 

finding a financing source, the 

financing terms could change.

How can this happen? 

How can the dealer 

renege on the sale? When a buyer signs 

a contract, he thinks 

the sale is final. But it 

might not be. 
11

What if I can’t get a loan 

and dealer financing is my 

only option?

If I’m buying a car, how can 

I avoid a situation like this?

Before you start shopping, 

go to your bank or credit 

union and apply for a 

pre-approved loan.
12

Read the contract before 

you sign it.

Ask if your deal is final. If it 

is, make sure that’s written 

in the contract.

If it’s not, ask the dealer to put 

in writing that your trade-in 

vehicle won’t be sold and your 

down payment will be returned 

if the deal falls through.
13

Ask if your deal is final.

– If it is, make sure that’s written in the contract. 

– If it isn’t, ask the dealer to put in writing that your trade-in vehicle won’t 

be sold and your down payment will be returned if the deal falls through.

Read the contract before you sign it. 

– Check if the financing terms — annual percentage rate, length of the 

financing, and amount borrowed — are what you expected.

– If the contract includes add-ons you don’t want, ask the dealer to remove 

them.

If your financing falls through, an unscrupulous dealer might pressure 

you to accept a different deal that costs more. You don’t have to agree to a 

second deal.

If you have a problem with financing you received from a dealership, report 

it to the Federal Trade Commission at www.ftc.gov/complaint or 

call 1-877-FTC-HELP.

Avoiding a Car-Buying Jam

If you have a problem with dealership 

financing, let the Federal Trade 

Commission know about it. Your 

report makes a difference.

1-877-FTC-HELP

www.ftc.gov/complaint 

If you’re buying a vehicle and financing it through the dealer: 
Esta fotonovela es parte de nuestro continuo esfuerzo 

para elevar el nivel de concientización sobre las estafas 

dirigidas contra la comunidad latina. Este cuento provee 

consejos para evitar un problema al comprar un carro. 

Para solicitar copias gratuitas en español, 

visite www.ftc.gov/fotonovela.

December 2015

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