Wrong payoff amount?

Question

I bought a vehicle for carmax. I financed it thru carmax and then refinanced thru another lender the next day. Carmax called and said I owe them more money because when they called to verify the payoff amout on my trade in, the amount was higher than the amount they were given originally. Shouldnt the company I had the car I traded in financed with be responsible for the difference since they are the ones that made the mistake? Problem is I dont have the money to give to Carmax

Yes Dale you have it right, the shortage is the difference in what Carmax was quoted the payoff was and the actual payoff amount.

Answer 1

If I follow you correctly then it sounds like that perhaps the problem was that carmax waited too long to send in the payoff and the amount quoted was no longer valid.

Answer 2

I think I have this right... You bought a car at CarMax and traded in your existing car that had a loan balance. You financed the trade difference at CarMax Finance and subsequently paid off the CarMax loan with the refinance loan.... Okay so far? Now after you've paid off CarMax's loan they are calling and asking for reimbursement on a shortage from the loan on the car you traded in? If that's the case, is the original loan on the trade in paid in full? Better check with that lender first.

Answer 3

call the company you refinanced through and find out why they didnt pay the entire amount. It's not likely they will pay the difference to carmax, just that they will roll it into your loan. You need to deal with the new company now though, since it was their mistake. Also, maybe find out if there was a pre-payment penalty at Carmax, maybe that's what you owe them, which probably wouldnt get rolled into a loan.

Answer 4

If you have a piece of paper which shows the trade-in value car-max offered you, go into carmax with a copy of this, ask to speak to a sales manager, and ask if the attorney general buys cars there

Answer 5

well you could be in a pickle here.
Hereis why. If the price offered was for the lower amount, it might be that is all the other company was willing to give you.
However if it was misquated then yes that company would be libable for the difference.

If on the other hand carmex was willing to finance it for one price and then looked it up and found that thy were wrong when thy were financeing it at the higher price, then you owe the difference.

Answer 6

I would say that the contract was made at the price you paid therefore you should not have to pay the extra...its their mistake so they pay!

Answer 7

Also get it looked into qiuckly before it goes into collection and affect your credit