Multiple customers of a Ft. Lauderdale, Florida car dealership have hired legal help after discovering what they claim to be fraudulent business practices. So far, attorneys have identified five cases wherein used car buyers believe they’ve agreed to a cash price, only to find loan finance paperwork for much higher amounts.

The dealership, Kars2Go, denies all allegations. In a statement, the company said that these customers mistakenly assumed the downpayment was the full sales price. It also claims that the loan paperwork used valid electronic signatures. However, one Toyota RAV4 buyer says there wasn’t a tablet or any means to sign electronically during the sales process. Lawyers say they’re uncovering more and more complaints.

Ruperto Guzman’s attorney says that Guzman negotiated via text messaging to purchase a 2018 Toyota Tacoma for $17,000 out-the-door. Guzman understood terms that included him putting $9,000 down and paying the remaining balance within two months…using cash.

After driving off with the Tacoma, Guzman found out that the dealership had entered him into a loan agreement totaling $30,960.

“He’s now on the hook for $31,000,” his attorney explained. “He needs the truck for work, so he has no choice but to keep paying for a loan he never agreed to.”

Another buyer, Samantha Thompson, says she spent years saving up to buy her mom a car for her 50th birthday. She spotted a 2016 Honda CR-V on Facebook Marketplace and contacted the dealership. She and her husband thought they negotiated a $6,800 cash price. Later, she found out Kars2Go created a loan in her and her husband’s names for more than $11,000 with a 20% interest rate. Since they already paid the $6,800, they will ultimately pay $21,000 for the car. Thompson is devastated.

In each case, Kars2Go maintains its innocence, claiming its buyers knew what they were signing. 

Thompson’s attorney looked into the circumstances of several fraud complaints. “We found that this dealership tends to prey on people who speak limited English or have difficulty reading English because they can be easily misled into signing documents they don’t fully understand,” he told Local 10 News.

The dealership already has an “F” BBB rating. What’s more, the Florida Department of Highway Safety and Motor Vehicles performed a dozen investigations of Kars2Go since 2020, but never uncovered any violations.

It’s incredibly important car shoppers fully comprehend what they are signing. While we would all think salespeople wouldn’t take advantage of a lack of understanding of car loans, they often push drivers into bad financial agreements. Please tell your loved ones, especially those who might have trouble reading loan agreements, not to sign anything at a dealership that they don’t understand completely.