Do you still believe that buying the new car from the dealer is the safest way?
By: Gaus Trade
Tags: Vehicles, ICO, Btc, Blockchain, Eth

Buying a new car is an exciting and highly risky venture. Many buyers blindly trust auto dealers without taking into account the pitfalls that such a procedure entails. It would take several separate articles to describe the full spectrum of fraud and mishaps that the chain of intermediaries between the automaker and the end buyer has in store. Therefore, it would be much more straightforward to simply bring a real life case to bear as living proof.

Not long ago, a businessman was going to buy a new BMW 3GT from dealer “I” . He paid the first trance for the vehicle, then he paid the remaining amount a few days later. Under the agreement, the dealer was supposed to deliver the car within 20 days, although the employees promised to conclude the deal in 10 to 12 days. But our businessman did not receive his car in 10 or even 20 days.

Two and a half weeks after the car was paid for, the businessman got a call from the official BMW dealership and was asked to transfer all of the signed agreements to the dealer. Thanks to the intervention of the manufacturer, the businessman got his car, albeit with a delay of more than a month.

It turns out that dealer “I” had failed to deliver over 30 fully paid Volvo vehicles apart from the abovementioned BMW case, says a representative of the automaker, as the importer recommended its customers to solve all arising issues with the dealer. A representative of Volkswagen Group recognizes that the dealer did not deliver the fully paid cars and did not return the initial payments to the customers. A solution was found for the customers who had prepaid their new cars in the amount less than their full cost. The solution consisted of delivering the vehicles by the official manufacturer’s representative instead of the dealer.

Such cases of fraud and blatant disregard for customer service are common problems when buying cars from dealers. Among other issues that customers face are inconsistency of advertising promises and disappointments when comparing reality and expectations.

Other notable cases of automotive fraud include the Thompson v. 10,000 RV case, under which Ms. Thompson had overpaid for a vehicle she had bought, since the seller had manipulated the price, sold a sub-par quality product and refused to fix it. As a result of this case, vehicle dealers were forbidden to legally manipulate vehicle prices, as was done to Ms. Thompson. People have the right to be told what they are really paying and what the real trade-in value was.

Another prominent case is that of O’Neal v. Major Motors of 2006, under which Ms. O’Neal bought a used Porsche with 26,000 miles on it. Some days later, the dealership changed the contract and made her pay higher interest and payments. Ms. O’Neal won $60,000 at trial, including all her payments and punitive damages, along with cancellation of any future payments. This case demonstrates how dealers feel that they have absolute freedom in manipulating agreements even after they are signed.

There has been no solution for the rampant fraud and inefficiency in the auto industry for a very long time until the advent of GAUS Trade — a blockchain based platform for purchasing new vehicles directly from manufacturers that excludes all intermediaries from the chain between the automaker and the end buyer.

Learn more about revolutionary solution GAUS Trade provides to help you escape problems as above! Subscribe for our Telegram group and read our updates this week.