car purschase im i gettin ripped off?

Question

About 1 month i ago i purschased a passat & traded in a jetta. the jetta was only worth about 10k but i owed 16,300.00
i got a trade in allowance of 16,500.00 by rolling 6,500 of negative equity to the new loan. The dealership said & stated on the contract they would payoff my car at 16,500.00 therefore i would get a refund from my bank of 200.00 . ( which i planned to use for window tint) i received a check from my bank that financed the jetta for only $20.00! .. later.. i found out the dealer only paid off 16,320.00 vs 16,500.00 ,. im calling the dealer & they're giving me the run around so now they kept the difference to profit & im screwed , what should i do? isnt this a violoation of contract? shouldnt they give me the difference now?

im willing to sue over 180 dollars if i can , it is a pre-owned & my contract clearly states trade in allowance is 16,500.00

Answer 1

OOOO they saw you coming buddy.

Answer 2

Here let me muddy up the waters. Another fact about rolling negative money into the new car loan you all have not said anything about. What if that 16,300 car gets totaled? Does your insurance provide GAP coverage? The difference of what the car is worth and the amount financed. State Cow will pay for the car but not the extra on the loan then you are behind payments on the bank loan with out a car. Not Great! The Finance Gremlins Have Got You!

Answer 3

Eh? You are dealing in funny money. They did you a favor and you are going to sue them? Your car was worth 10 grand & they gave you a 16,500 allowance that ended up being 16,320? Did you ask where the 180 went before flying off the deep end?

To answer the question, not enough details were included to honestly say whether or not you were ripped off. I'm leaning toward not- I have never heard of a dealer giving that much for a Jetta. VW has had a horrendous amount of press in the past few years and are considered the worst new cars by J.D. Power for reliability. I logged into Consumer Reports and that reminds me of the topsy turvy VW world. Jetta's get stellar marks for things like crash test, suspension, etc... but everyday things like your power windows going down.. all duds.

If you decide to sue, for this small amount, you have to go to small claims court. Go to your county seat court clerks website and there should be a link for small claims court. If they don't have a website then call up the court clerk and ask to have the form mailed to you- it will probably cost somewhere between $10-$20 to file.

Answer 4

Look, it's your money. They gave you 10000 for your car, then added the 6500 on to your loan for your new car. If they give you the $200, your loan will have to go up $200. They are paying you with your money and you don't even realize it. You paid off the 6300 you owed on your other car because they added it to the amount you have to pay for your new car. So, instead of you getting any kind of trade in value, you got what I like to call, taken to the woodshed. Let's do the math.

You owed 16300. They gave you 10000. I don't know what you paid for the new car, so I'll guess 13500. They told you they gave you 16500, but had to roll your "negative equity into the new loan", which means that you are paying for what they called trade in value, so your new car is costing your, oh, I don't know, maybe 20000, which is more than it's worth, so you are once again, upside down. The $200 is saving you a little tiny bit of payment, but if they give it to you, they're just adding it to your loan and making you pay interest on it. This was not a very well thought out transaction, my friend, and you took it in the shorts.

Answer 5

If this is in writting on the contract and you still have uncashed $20 check go into dealership and raise hell. I did a deal like this years ago where I had over $500 coming to me from the overpayment a dealer made on my bank loan to pay off car I traded in and I had no problems. The dealer himself got the extra payment back from my bank and gave it to me right away. It might state in contract that dealer has right to keep any overpayments made by dealership to your bank but even if it did and he told you money is yours what you have is a greedy dealer which probably means the dealerships owners are crooked. If they offer you free service in stead of money take it, most dealers are scum!

Answer 6

Dealers love customers like you. They are screwing you at every turn, allowing you to make uneducated and bad financial decisions. But, the buyer beware motto comes into play, and you are stuck with what you got, since even if it is not in the fine print of the contract, it is not worth pursuing them for it.....they will nail you when you need service done. Find a car dealer/salesmen with a solid reputation....it will take work and much time.

Answer 7

You should take a copy of your contract to the dealer and ask to see the general manager, show them your concern and that you are willing to take it to court to get your cash, if the manager has any sense they will give you the $180 asap and that should become history. If they don't give you a check send them a certified letter demanding the money in 7 days or you will proceed to small claims court.

Good Luck

Answer 8

I had that same problem when I traded in my car for a BMW. The BMW dealership was trying to keep my money, and kept given me the run around. But I told them that I would sue that hell out of them,(even though there a big company) and tell everyone what had happens to me. They gave me my money faster than I could dial the number to my attorney. I don't know how it is over there, but stay on them, and threaten to take action, and by all means follow up if necessary. Its your money and you are entitle to it!

Answer 9

Here's the seal, if the dealer did not pay what the contract said they would then take it up with the dealer.
DON'T CALL GO IN and make a scene with your salesman.....make sure he knows your mad. don't yell or do anything stupid...just ask him in a bit above normal voice why they didn't pay....get the check from them only....
If thatfails get your ducks in a row and go to your local TV station who does the consumer watch or on your side episodes......trust me one visit and the balance is yours...you might even mention that on your visit...cause them immediate pain don't do the lawyer crap as that just delays the fun you will have watching the TV media rip them...

Answer 10

Take a close look at the bill of sale. If that is not the same what they paid/rolled over call the BBB and see if they can tell you what to do. I would suggest a lawyer, but they cost much more.

Answer 11

See your State Attorney General, on the web, or Blue Government Pages of the phone book. I was in the auto business.