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Old 07-16-2012, 01:59 PM
 
Location: NJ
17,579 posts, read 21,307,601 times
Reputation: 15431

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If there is nothing in the contract that says they can do this she doesn't have to give the car back. She shouldn't have to do anything other than keep making payments at the agreed upon price.

Obviously though the big question is if indeed they can or can't do this based on the contract. As others have said I would ask the dealership to point out EXACTLY where in the contract it says they can do this.
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Old 07-16-2012, 03:47 PM
 
Location: Sacramento
8,461 posts, read 5,537,021 times
Reputation: 6462
Don't Fall Prey to Spot Delivery Scams and Yo-Yo Financing - Edmunds.com

Tough position. It's not as simple as most of the posters are making it out to be, depending where you live of course. Best thing to do would be get financing through a local credit union or bank. Do that, sign the paper work and then refinance immediately (make sure there's no early-payment penalty).
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Old 07-17-2012, 03:14 PM
 
3,781 posts, read 4,427,422 times
Reputation: 2522
Every car dealer uses a contract stating the deal is dependent on an interest rate FAR above what you will pay. The salesperson will tell you something like dont pay any attention to the 18% rate, you will pay a lot less. This is the "out" they have in getting you to sign for a rate almost anyone can qualify for you cant rescind a deal based on interest rate. While on very rare occasion there are shenanigans going on, they dont happen much anymore because states and bankers regulate this end of the business. Fact is a majority of cars are sold on weekends and the banks arent open to give a 100% approval then. Your best recourse is just refuse the offer for higher rate andrun out the clock on the dealer if you dont want to pay it. You basically say I wont sign the financing contract as you have offered so the dealer will either hustle and find a better rate or just let the deal fall through. There is nothing illegal about it.
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Old 10-29-2013, 03:33 PM
 
1 posts, read 740 times
Reputation: 10
Default car dealership

I've got a great story.I traded my 2011 200 touring V6 for a same car 2013 4 banger. The dealership, was looking for a lender, and found a credit union who accepted the loan. I drove this car off the lot 9/24/2013, and on 10/19/2013 I get a weird call, dealership has a lil problem. The lender changed their minds, and was not taking the loan after all. The dealership pays off my loan on the car I traded in, I also gave them $1,000 down, because that is what the Credit union required. They now are trying to get me to re-contract at a higher rate, which I have no interests in. I'm about ready to bring their car back, and request my funds back, and go somewhere else. Specially since I went down there with a car, that now I believe the car has been whole saled, and gone. A month later, and and now this. I read my contract, it says that if they were unable to find a lender, they can request the vehicle back. In this case they found a lender, the dealer paid off my loan, the lender canceled on them just a tad bit too late, and I have a car, with no lender, and my payments per that deal were suppose start NOV 8th. Not to forget I don't have a car any longer, and the new car, with higher interest rate is not attractive to me. Anyone have any advice. ThanksMary

Last edited by Prison123; 10-29-2013 at 03:37 PM.. Reason: spelling
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Old 10-29-2013, 03:49 PM
Status: "USA Inc. - For the rich..." (set 18 days ago)
 
10,264 posts, read 3,217,236 times
Reputation: 2594
Quote:
Originally Posted by Prison123 View Post
I've got a great story.I traded my 2011 200 touring V6 for a same car 2013 4 banger. The dealership, was looking for a lender, and found a credit union who accepted the loan. I drove this car off the lot 9/24/2013, and on 10/19/2013 I get a weird call, dealership has a lil problem. The lender changed their minds, and was not taking the loan after all. The dealership pays off my loan on the car I traded in, I also gave them $1,000 down, because that is what the Credit union required. They now are trying to get me to re-contract at a higher rate, which I have no interests in. I'm about ready to bring their car back, and request my funds back, and go somewhere else. Specially since I went down there with a car, that now I believe the car has been whole saled, and gone. A month later, and and now this. I read my contract, it says that if they were unable to find a lender, they can request the vehicle back. In this case they found a lender, the dealer paid off my loan, the lender canceled on them just a tad bit too late, and I have a car, with no lender, and my payments per that deal were suppose start NOV 8th. Not to forget I don't have a car any longer, and the new car, with higher interest rate is not attractive to me. Anyone have any advice. ThanksMary
Do you know that your car has been sold for sure? If so, it seems you have 3 options. Take the car back, call the dealer and have them find a lower interest rate for you, or give you the cash and cash value of your trade (Ex: if they gave you $5K for your trade then they owe you $5K or your car). I had a similar thing happen to me (lender falling through), but I got a lower interest rate than what I originally agreed to.
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Old 10-29-2013, 04:55 PM
 
Location: Apple Valley Calif
7,426 posts, read 12,056,371 times
Reputation: 5169
A story in the local paper a while back, a guy takes his car into a local dealership to get it serviced. While waiting, he is talked into buying a new car, so he trades in the old one and drives home a happy man.
A month or so later, the finance company notifies him he is late on his car payment for the car he traded in. He tells them the car was traded in and he no longer owns it. Finance company tells him it was never paid off, and he better check with the dealership. So off he goes to the dealership, only to find--- The dealership is out of business and long gone. They sold his trade in but never paid it off.
He contacted the factory who told him it was out of their hands. He gets to make two car payments until paid off, while someone else is probably making payments on the same car...
Some times life sucks...
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Old 10-29-2013, 06:52 PM
 
Location: Carmichael, CA
1,012 posts, read 808,332 times
Reputation: 1291
Quote:
Originally Posted by Donn2390 View Post
A story in the local paper a while back, a guy takes his car into a local dealership to get it serviced. While waiting, he is talked into buying a new car, so he trades in the old one and drives home a happy man.
A month or so later, the finance company notifies him he is late on his car payment for the car he traded in. He tells them the car was traded in and he no longer owns it. Finance company tells him it was never paid off, and he better check with the dealership. So off he goes to the dealership, only to find--- The dealership is out of business and long gone. They sold his trade in but never paid it off.
He contacted the factory who told him it was out of their hands. He gets to make two car payments until paid off, while someone else is probably making payments on the same car...
Some times life sucks...
He should have contacted DMV Investigations. While the whole issue does end up being civil, there would also be the new car dealership and new buyer involved (whoever the car dealership that went out of business sold it to) and sometimes agreements can be made to share the cost of the payoff.
Also the dealer that went out of business would have had a $50,000 bond that could have been drawn against for the payoff.
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Old 10-29-2013, 07:23 PM
 
Location: 23.7 million to 162 million miles North of Venus
1,514 posts, read 1,997,000 times
Reputation: 1476
Quote:
Originally Posted by Prison123 View Post
I've got a great story.I traded my 2011 200 touring V6 for a same car 2013 4 banger. The dealership, was looking for a lender, and found a credit union who accepted the loan. I drove this car off the lot 9/24/2013, and on 10/19/2013 I get a weird call, dealership has a lil problem. The lender changed their minds, and was not taking the loan after all. The dealership pays off my loan on the car I traded in, I also gave them $1,000 down, because that is what the Credit union required. They now are trying to get me to re-contract at a higher rate, which I have no interests in. I'm about ready to bring their car back, and request my funds back, and go somewhere else. Specially since I went down there with a car, that now I believe the car has been whole saled, and gone. A month later, and and now this. I read my contract, it says that if they were unable to find a lender, they can request the vehicle back. In this case they found a lender, the dealer paid off my loan, the lender canceled on them just a tad bit too late, and I have a car, with no lender, and my payments per that deal were suppose start NOV 8th. Not to forget I don't have a car any longer, and the new car, with higher interest rate is not attractive to me. Anyone have any advice. ThanksMary
(for some reason multi quote isn't working)
Quote:
lycos679....... Do you know that your car has been sold for sure? If so, it seems you have 3 options. Take the car back, call the dealer and have them find a lower interest rate for you, or give you the cash and cash value of your trade (Ex: if they gave you $5K for your trade then they owe you $5K or your car). I had a similar thing happen to me (lender falling through), but I got a lower interest rate than what I originally agreed to.
I agree with lycos. Check with your previous dealer to see if the loan had been paid off. As far as if your trade in has been sold, most 'reputable dealers' won't sell off a trade in until the deal is finalized with the new lender and the dealer has the money in hand. Some may 'claim' they sold it, but it may be sitting in their back lot instead. You might run a CarFax report on your old car to see if it has traded hands - as long as it's been since they've had the car I would imagine that it's been long enough for a sale transaction to show up on a CarFax report. But even if they did sell it off you can demand the money back from it for whatever the trade-in value was on the contract, along with your $1k down payment. You signed a contract for a certain interest rate, if they cannot find a lender willing to match that interest rate then you are Not bound to "re-contract" at a higher rate. You also have 'the right' to ask for a copy of the letter denying financing at the agreed-upon terms (don't let them tell you that you don't have the right, because you do!) Did you sign a Bailment Agreement for Spot Delivery? If so, and you end up returning the vehicle, they 'might' be able to charge for mileage, for every mile 'exceeding average daily use'. If they can't/won't honor the original signed paperwork then take the car back and have them unwind the deal.
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Old 10-30-2013, 01:35 PM
 
Location: Apple Valley Calif
7,426 posts, read 12,056,371 times
Reputation: 5169
Quote:
Originally Posted by cb73 View Post
He should have contacted DMV Investigations. While the whole issue does end up being civil, there would also be the new car dealership and new buyer involved (whoever the car dealership that went out of business sold it to) and sometimes agreements can be made to share the cost of the payoff.
Also the dealer that went out of business would have had a $50,000 bond that could have been drawn against for the payoff.
I never heard what the final outcome was, it was just a story in the local paper. You are correct about the $50k bond, but if they were shady enough to have done one illegal transaction, they may have had many claims which would have chewed up the bond.
They would have had to have done some shady paperwork in order to sell a car they didn't own. They would have had to forge or falsify a title. Maybe the dealer is in jail now???? I certainly hope so.
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Old 10-30-2013, 03:09 PM
 
Location: New York City
3,487 posts, read 2,795,631 times
Reputation: 2641
Quote:
Originally Posted by Fields of Green View Post
A relative has contacted me in a panic and I don't know the answer so am asking here... She bought a new car at a dealership about a month ago, had a trade-in, agreed to interest rate, signed paperwork, etc. Their finance department contacted her this weekend saying they couldn't offer her that interest rate and said it would be 3 points higher. Nothing has changed with her credit, income, employment. I assume the answer is she needs to read her contract again, but this doesn't sound ordinary or legal. Is it? I assume she can cancel the deal and give the car back, but who knows where her old car she gave them is at this point...
They can and often do try this sort of stuff. What happens is that they write car deals semi-crossing their fingers that the financing company won't balk at the deal they wrote the customer. They've got brackets for credit-worthiness they put you into based on a quick 10 minute credit check, but sometimes they try to offer a marginal customer the best rate to make the deal as appealing as possible, and then it backfires on them when the bank comes back on them and says they won't finance the deal at the better rate. Sometimes it takes a few weeks for all that to roll back down hill.

They can't do anything without the customers consent and signature. She can either accept the higher rate and keep the car, or flat out refuse, which would make any number of outcomes possible. They could ask for the car back.
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