How do car ads get away with cheap monthly payments

Factual Questions
1

I see this all the time, an ad for a new/er car for $100-150 a month. I’ve never understood how this is even possible until the other day when I say the fine print. It said $100 three times a month, total $300 a month.

Now I get the three payments equals $300, what I don’t get is how they can get away with saying only $100 a month. That to me is an out right lie. They don’t say payments of $100, they say $100 a month. So how do these ads get away with a lie? I’m going to see if I can find an ad that shows what I’m after but I don’t remember all the places that do it.

2

I’ve never seen what you describe. Around here, the low payment deals usually involve a high down payment and/or a balloon payment, with an 84 month term. Or are just a flat-out lease, but they talk around it enough it in the ad to make it sound like a purchase.

3

I like the ones that have " Final payment may differ from advertised payment" in the small print.

WTF? Basically, we can charge you what we want.

4

I believe this is supposed to be referring to the final payment in a normal loan, and how it’s less than the rest of the payments.

5

Ever bought a cell phone?! Anywhere from $0 to $199. Ask about actually buying the cell phone for that price and you’ll be shown a contract that far exceeds the cell phone’s technological lifespan - if not its functional lifespan.

6

One trick I’ve noticed-they will list a price, showing a substantial cash down payment (or trade). This is in fine print, so the price looks lower. Of course, you can pay and ungodly dealer interest rate (21%) and take out a 7 year loan!

7

I know the tricks they try, I’ve just never seen this one. It was a TV ad and I haven’t been able to find one like it in print. They did say:
“Payments $109 a month!*”
“*three payments of $109 per month at 8% for a total of $330 a month.”

What I don’t get is how they can say it’s only $109 a month when clearly it’s not. I listened to them as well and they kept repeating $109 a month. Now had they said payments of only $109 then I can see them getting away with it, but they didn’t say that.

8

Never seen the multiple payments per month crock. I have seen a noted German luxury car whose dealer up here had deals on leases with low monthly payment. Sure, until you read the fine print which included an up front lump sum of around $5000, lease only good for 27 months, and only 9000 miles per year otherwise very large “per mile” charges. :rolleyes: Adding in all that- the payments in reality doubled. :eek:

9

Just a WAG, but maybe you have to pay the $100 a month three times a month for full amortization on the loan, but they will let you pay only $100 a month for a period of time and still stay current on the loan, sort of like negative amortization on a home loan…

10

As garygnu said, you’re misunderstanding that one. It simply means that the last, final payment may be for a different amount than the rest of the payments.

As for the OP example, I have never come across that and would be amazed if it’s legal in this country.

11

Because they lie! And who’s going to stop them?

When the Government regulators have been cut so much that they can’t even keep China from putting poison in imported food, or lead paint on our childrens toys, do you think they are worrying about lies in advertising?

Just assume that everything that you see in an ad is either a direct lie, or a indirect, misleading lie – you’ll be much closer to the truth.

12

That may very well be the answer. They are on again, it’s Ted Britt in Virginia. Now though they seem to have dropped the price for everything down to $99 a month. Then in small print you have to be up next to the TV to read it says three monthly payments of $99 for $500 a month for 68 months or something crazy like that. Makes my brain hurt just trying to figure it out.

13

I have never heard or seen an ad like you describe, but I have seen ads that list a low monthly payment for the first 3 months, then shoot up to a higher payment.

So you’d have three monthly payments of $109 per month, then 57 payments or whatever of $330 per month.

14

Slight hijack, but did you miss the apology from Mattel that the lead paint was there through their - Mattel’s - design fault?

15

Well I finally get it. They say only $99 a month, except it says
“three payments of $99 a mo. payments of $300 for 69 mo.” They don’t use good grammar in the fine print making it confusing. So it’s only the first three payments are $99. It’s no wonder people have a hard time with this kind of crap, I knew something was up, but it took a week to figure it out.