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I leased a new car this weekend. I traded in my old car that I still owed money on. I wasn’t sure what I owed on it off the top of my head but they said they would pay it off. So we went through the paper work, I signed over the title to my old car and drove away in my new leased car.
I got a call today and they said that I owed them 700 bucks cause I owed more on the old car than what they thought. Is that their mistake or do I legally owe that money? Seems weird for them to go looking for money after all the papers are signed, title is in their hand now on the old car etc.
I got a call today and they said that I owed them 700 bucks cause I owed more on the old car than what they thought. Is that their mistake or do I legally owe that money? Seems weird for them to go looking for money after all the papers are signed, title is in their hand now on the old car etc.
Check through your copy of the paperwork [you did save that, right?] to see if there is a payoff amount listed on the sale of the trade-in.
That is their problem not yours. They did the math wrong and now they are hoping you are a sucker and pay up. If all papers were signed, you owe them nothing but make sure your paperwork doesn't state that you owe them more money.
They are supposed to call the loan company that your car is with and ask for a 10-day payoff ammount. If they failed to do this and just guessed its on them.
Sorry, but this is a very typical scenario in the car business ...
where the paperwork that you signed to get your new car most likely had fine print in it that allows the car dealer to get a final payoff figure and adjust the amount you owe.
the inducement to lease (or buy) the car at the time you were on the premises was based upon a low-ball number, so you signed the deal and drove off with your new car, leaving the trade-in with the dealer.
You acknowledge that you didn't know the actual pay-off amount, so you should have anticipated that the final figure might be different. With this being an "after-hours" deal on the weekend, the payoff amount would not be available to the dealer at the time of your deal.
You owe the money for the payoff of your old car. Time now to pay up to the dealer where you traded in your car.
I agree with the others, Carrot . . . CHECK YOUR PAPERWORK.
Lots of crazies out there but I cannot imagine a "signed and sealed" contract without some type of total pay-off or maximum pay-off amount with a clause stating who is responsible for any additional funds needed.
However, once again . . . LOTS OF CRAZIES OUT THERE.
Check your paperwork. This is a little surprising, as they can USUALLY get a good idea of what your balance is based on your credit report, at least within one payment, and I've never heard of anyone getting a lease without the credit report being run. Also, as part of your trade in you should have something that states the trade value. You can compare that with the actual payoff amount.. Not all stores are run the same, but I would usually call the banks and get the exact amount for the loan or otherwise see if the customer couldn't bring it up and print it off so we knew within the range of perdiem what the payoff was.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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When I have bought new and traded something with a balance I check the account online that day and see what the payoff amount is, and never had that happen. You lease the car Saturday and the dealer contacts the old lender Monday and there is often a difference from what you think or the credit report shows. I'd be willing to bet that there is small print on the lease that requires you to pay it, even if there was a mistake where the old lender gave the wrong amount to the dealer over the phone.
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