Dealer Scam

[dweiss6914]

My Genesis G80 lease is up in about a month. I went to dealer to discuss the procedure to purchase the car at lease end. I was told that even though my lease specified the purchase price he would not allow the buy until I paid an additional $2000 for "Certification" and $900 for an additional "Dealer Fee". None of that is in the signed lease and in article 9 of the lease there is a box that asks if any additional funds are due and written in is Zero. I am not buying a pre-owned car from the dealer and need it certified. It is my own car. This is nothing more than a money grab from a very unscrupulous dealer. The dealer in question is Delray Genesis (also Delray Hyundai, Acura), Delray Beach, Florida.

I plan on contacting Genesis Corporate and advising them of this situation. I see in your forums that the auto maker keeps a "hands off" when it comes to complaints about dealers but in this case if they do nothing it shows they are "complicit" in what I see as fraud.

I am also sending a registered letter to the the Florida State Attorney Generals office as I see this as a possible case of "fraud/extortion".

David Weissman

 

[Mcc]

Just talk with Genesis Financial. You need to deal with them directly to purchase at lease end. Dealer has nothing to do with it. Genesis Financial handles everything.

 

[EdP]

My Genesis G80 lease is up in about a month. I went to dealer to discuss the procedure to purchase the car at lease end. I was told that even though my lease specified the purchase price he would not allow the buy until I paid an additional $2000 for "Certification" and $900 for an additional "Dealer Fee". None of that is in the signed lease and in article 9 of the lease there is a box that asks if any additional funds are due and written in is Zero. I am not buying a pre-owned car from the dealer and need it certified. It is my own car. This is nothing more than a money grab from a very unscrupulous dealer. The dealer in question is Delray Genesis (also Delray Hyundai, Acura), Delray Beach, Florida.

I plan on contacting Genesis Corporate and advising them of this situation. I see in your forums that the auto maker keeps a "hands off" when it comes to complaints about dealers but in this case if they do nothing it shows they are "complicit" in what I see as fraud.

I am also sending a registered letter to the the Florida State Attorney Generals office as I see this as a possible case of "fraud/extortion".

David Weissman

Certainly sounds sleazy. Only possible way you'd have to pay to have it certified is to extend warranty. Not sure how it works but the 10/100 warranty on a used car becomes 5/60. Do they count you as second owner? Ask Genesis Finance about it.

 

[Chad86tsi]

I bought out my lease on a Tahoe many years ago. I just got financing pre-arranged and had my new bank call the leasing bank. That all happened with no work on my end, and I never even thought of talking to the dealer. It's just like refinancing, which is what I was doing. There was a lease termination fee of a few hundred $$, and nothing more. Took about a week in total.

 

[G-882847]

Just talk with Genesis Financial. You need to deal with them directly to purchase at lease end. Dealer has nothing to do with it. Genesis Financial handles everything.

Thanks for the info. I did finally speak to them and they transferred me over to an entity that I could purchase/finance the buyout. For some reason when Genesis sent me a questionnaire if I was going to turn in or buy they said that Florida has some strange rules. They (meaning Genesis Finance) cannot be used to buy at the end of the lease. You are supposed to go thru the dealer. Afterwords they sent me over to this other company. Even though I now know I can buy it back without going thru the dealer I am still going to pursue my fight against the dealer. I am sure there are many other people who did not know they can avoid this dealer and paid the "blackmail". I feel they should get back this "blackmail" money.

 

[NolaG80]

I had a terrible dealer experience trying to buy a used 2015 Hyundai Genesis at the dealership in Stuart, FL around Sept 2020. Wallace group that owns most of the dealers there north of the Palm Beaches. Crooks and quite rude as well. Sounds like you will be able to work through your issues with the dealer ok. If not, consider hiring an attorney. Best wishes

 

[Chad86tsi]

Interesting video on this from a legal channel I follow. It is specific to Florida too:

Yah, added fees are illegal, a Federal crime. The Florida Attorney is even encouraging people turn these scum bag dealers in. Do it

 

[glennk]

It is my understanding the most leases these days are closed end. The only reason you should owe anything would be for excessive wear or tires. That is owned to the leasing company, not the dealer

 

[twobits21]

Thanks for the info. I did finally speak to them and they transferred me over to an entity that I could purchase/finance the buyout. For some reason when Genesis sent me a questionnaire if I was going to turn in or buy they said that Florida has some strange rules. They (meaning Genesis Finance) cannot be used to buy at the end of the lease. You are supposed to go thru the dealer. Afterwords they sent me over to this other company. Even though I now know I can buy it back without going thru the dealer I am still going to pursue my fight against the dealer. I am sure there are many other people who did not know they can avoid this dealer and paid the "blackmail". I feel they should get back this "blackmail" money.

Can you share the "other company" that you were able to buy/finance your lease with? I am also in Florida and rather not deal with the dealer. Would be much appreciated. Thank you!

 

[G-365803]

Tresl is the company that Genesis will send you to to either buy directly or finance

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[strudenilist]

Did you manage to buy the car? I am also having trouble with my Hyundai dealer, and I don’t know what to do about it. They consider me a second car owner even though it was new when I bought it. They also ask me for an additional “dealer fee” that has not been stated anywhere before

 

[G-973773]

I bought/financed the car using Trestle which was directed to me by genesis finance. No problem. No dealer involvement

 

[strudenilist]

Did you manage to buy the car? I am also having trouble with my Hyundai dealer, and I don’t know what to do about it. They consider me a second car owner even though it was new when I bought it. They also ask me for an additional “dealer fee” that has not been stated anywhere before

I have already been thinking about suing them. I know a good court martial attorney. He is good for any case, and I think he would be able to sort out these problems too. If there are some more issues with the company, I will consider suing them as a possible option

 

[glennk]

Just the threat from an attorney usually scares them off. General Managers do not like paying for defense attorneys. I'd have yours draft a letter directly to him, copying the owner of the dealer.

 

[g70rpd]

Just talk with Genesis Financial. You need to deal with them directly to purchase at lease end. Dealer has nothing to do with it. Genesis Financial handles everything.

I just got off the phone with Genesis Financial and they said I must go through the dealership for any lease buyout financing.

I refuse to do so which means I'll get the loan elsewhere.

 

[Chad86tsi]

I just got off the phone with Genesis Financial and they said I must go through the dealership for any lease buyout financing.

I refuse to do so which means I'll get the loan elsewhere.

I'd read your lease terms first, that doesn't even sound legal. There has to be buyout terms or completion terms spelled out. You'll have to go to a dealer if you are just turning it in, and that's the only time a dealer is used in the process after a lease-sale.

What would happen if you defaulted on your lease? I doubt they would solicit the dealer to come knock on your door. The dealer sells cars, the Genesis finance department does the financing. Once sold, the dealer has no bearing on the transaction in the financing phase. they are paid and that's that. The dealers are completely separate entities, with nothing in common on paper or otherwise.

 

[EdP]

I'd read your lease terms first, that doesn't even sound legal. There has to be buyout terms or completion terms spelled out. You'll have to go to a dealer if you are just turning it in, and that's the only time a dealer is used in the process after a lease-sale.

What would happen if you defaulted on your lease? I doubt they would solicit the dealer to come knock on your door. The dealer sells cars, the Genesis finance department does the financing.

No, the Genesis finance department gave me the loan to buy my car but the dealer is the one doing the paperwork to get it started. What g70rpd did was called them directly. I'm assuming the dealers are the agents that do this sort of thing.

Sure, you can get money from any source you want, but you have to go through their system. Banks have a loan officer sitting in a cubicle out front, GMAF uses dealers.

If he had the money already they may accept a check or transfer be he wanted to finance it.

 

[Chad86tsi]

No, the Genesis finance department gave me the loan to buy my car but the dealer is the one doing the paperwork to get it started. What g70rpd did was called them directly. I'm assuming the dealers are the agents that do this sort of thing.

Sure, you can get money from any source you want, but you have to go through their system. Banks have a loan officer sitting in a cubicle out front, GMAF uses dealers.

If he had the money already they may accept a check or transfer be he wanted to finance it.

So the dealer owned the car, or the finance company? If the dealer is the owner and decision maker, why do they let you service it at any Genesis dealer?

Last few cars I've bought, the dealer did the paperwork, but my checks went to the finance company, and the finance company was name was what was on the lienholder spot on the title. The dealer doing paperwork is to be sure it's done right (form their perspective). You can lease a car in Florida and turn it in at the end in Washington. Why? because it's not the dealers car, or their business what happens to it after it leaves their lot.

 

[EdP]

So the dealer owned the car, or the finance company? If the dealer is the owner and decision maker, why do they let you service it at any Genesis dealer?

Last few cars I've bought, the dealer did the paperwork, but my checks went to the finance company, and the finance company was name was what was on the lienholder spot on the title. The dealer doing paperwork is to be sure it's done right (form their perspective). You can lease a car in Florida and turn it in at the end in Washington. Why? because it's not the dealers car, or their business what happens to it after it leaves their lot.

But none of that has anything to do with what the poster was trying to do.

Yes, the finance company owns the car. The poster wanted to buy it and wanted to obtain a loan. Normal transactions. So, the finance company told him to go to their agent to apply. That would be the dealer.

Just as most insurance companies have agents. Sure, you send them a check but changes and such are often handled by the agent. Many companies rely on a dealer network for sales, service, finance.

 

[Chad86tsi]

But none of that has anything to do with what the poster was trying to do.

Yes, the finance company owns the car. The poster wanted to buy it and wanted to obtain a loan. Normal transactions. So, the finance company told him to go to their agent to apply. That would be the dealer.

Just as most insurance companies have agents. Sure, you send them a check but changes and such are often handled by the agent. Many companies rely on a dealer network for sales, service, finance.

I refinanced my lease buyout through a credit union. There is more than one path to the solution, and going to a dealer is not usually the best one.