This case involves a large network of automobile dealers in regards to their trade-in value of their vehicles. When a consumer traded in a vehicle, the defendant would assign it a value. However, they would not not apply the value as a capitalized cost reduction towards the purchase of a new vehicle. Even where a trade-in vehicle was disclosed, along with the trade-in allowance, the defendant failed to use that as a capitalized cost reduction under certain circumstances as required. As a result, a number of customers received far less than the fair trade in values for their old vehicles.
Question(s) For Expert Witness
- 1. Please describe your experience in corporate automotive finance and leasing.
Expert Witness Response E-070736
I am an Automotive Industry Consultant and Trainer. I have been involved in the automobile business for over 42 years. I have an extensive background in the retail automobile dealership business for 19 years and 23 years as a consultant and trainer. My career as a Trainer started in 1994 at Cadillac, after which I founded my own training firm and became a Chevrolet Motor Division Certified Lease Trainer. There is a disclosure box on the lease Contract: Itemization of Amount Due at Lease Signing or Delivery. The field: Net Trade-In Allowance and should disclose the Actual Value less payoff (if any). In some cases, a customer could request a check and not use the equity as a cap cost reduction.