I saw an add for a dodge stealth today for super cheap in Baraboo, which is about a 2hr drive from me. So I call em to get some info. It comes down to me needin a little money to finance this vehicle in addition to the money down. So i get aproved for financing. Now this guy knew how far away I'm comming from and it is a dealership (a dealership that is basically a small parking lot and a hut). He suddenly throws a curveball into everything..

He needs for me to have insurance to drive it away because of the finacing. Now in WI it is not law to have insurance. But i can understand because of the bank borrowing me money or whatever. So I call my insurer, have them fax papers over. For some reason he faxed these papers off to his insurance agent who promtly calls me.
She tells me in order to get insurance on this vehicle through this dealer I need to get it through her.
She also tells me I HAVE to have full coverage because of the loan also. Although unusual because I have a loan on my hyundai that only requires me to have liability (and it only does right now because its garaged.)
So I ask her for a quote and this is what I hear, "I see you have your house, x amount of vehicles, and a motorcycle insured through this company. In order for me provide you with any insurance, I would need you to transfer those properties onto our provider."

I stood up, told him to go fvck himself and left. I have never heard of a scam like this before, and the only conclusions I could come to were that this indeed was some sort of scam, or these two individuals through the dealership and insurance company are poorly trained sales personel. Either way both of them lost income they would not have had yesterday.
I just wanted to let you guys know what I went through today, so u can watch out and prepare for this in the future.

 

haha that sucks man. Next time get a loan through your bank and just go with cash. The only reason Ill finance at the dealership is because I get super low interest.

 

Yea thats what ill have to do. I basically went down there on a whim..the car turned out to be nice an the price was cheap enough to fix the only issue i saw w it an sell it for a quick chuck of change..im glad i didnt now tho because somethin was jus a little off in that whole situation. watch out for them if u ever make it down there. surprisingly the guys name was eric too.

 

what the heck?!?!

I don't know whats going on out in WI but in KY when you buy a new car your insurance company covers you automatically for the first couple weeks. Kentucky Farm Bureau, what I have, gives you 4 days full coverage then 10 days of liability to give you time to stop by and setup insurance!

Holy crap if thats the way the salesmen treat all there customers they can't be selling many cars.

 

That's waaaay illegal. True that you need to have full coverage on a vehicle loan, but it DOES NOT have to be through a certain person. And they know that they cannot tell you to transfer all your other insurance over to them. That's bullshit, and I'd inform the police (if not, the local news) of the scam if I were you.

 

thats crazy. my guess is this "insurance company" is owned by this car dealership. a little double dippin on the profits maybe?

 

agreed, you have to have full insurance on a loan in PA but it does not have to be thou a certain company.