Needing legit. advice about my rights as a car consumer.?

Question

on 11/4 I purchased a vehichle from a used car dealer. I used my prior vehichle as a trade in and was given enough trade allowance to provide a decent down payment. The sales person and I had to fed ex contracts back and forth for various reasons, and by the time we did the final contract(1/5/2007), I abruptly lost my job(1/9) .Now the company that had the the financing will not go through with the loan. Now the lady is telling me that I not only have to return the vehichle, but shes also telling me that I must pay the "negitive equity" from the trade that was supposed to be my down payment. If they gave me xx,xxx.xx$ for my truck, &x,xxx.xx went to pay off the existing loan for that truck, the $x,xxx.xx remaining should be returned to me if they cant put in me in a new vehicle, Correct? Im feeling a little pushed around and would like to get some idea of whats up before I head to the family law office.

I should add that although I was fired, I was blessed enough to turn around and join another company right away. The car dealers response to this: " You havent been on the job long enough, and WE cant let this sit untill you get verifiable proof of income"...let it be known that i was on my prior job for 6 years, so it isn't as though I have an unproven track record in my career that would cause them to balk at financing.

Answer 1

Definitely talk to the lawyer on this one. 2 months to get financing in order? Sounds like a shady dealer to me. We have one like that here. They switch your financing around, and sometimes you don't realize the favour they did by getting you financing was actually a high-interest lease. We used to have one that put your car on the lot while you were taking yours for a test drive, and in one case I know of, actually sold it on the poor people. That is no longer possible with the ownership documents we now have to obtain. Good luck.

Answer 2

In a nutshell, you're screwed. Then again, you're both at fault. But seriously, 60 days to finance a car deal? Did you title your old car over to them without a closed deal on their end? Your income shouldn't be the issue at this point, rather your FICO score so the paper can get bought. (A bank needs to carry the loan on the car and the title). The bank is concerned about your ability to pay, yes, but they have an asset to collateralize to cover the loan.

The dealer bought your old car at a wholesale price so they could retail it for a profit. If you return the car they are giving you a wholesale value, which is why they are asking for you to come up with cash to cover the negative equity. It's B.S. They're making cash three ways:

1. sold your car for a profit
2. sold you a car for a profit, but asking you to cover inequity in a deal they couldn't get bought.
3. taking the car back at wholesale so they can retail it to someone else.

Keep in mind a car is a depreciating asset. But two months on a used car shouldn't be too much. Financially, you stand a better chance of retailing this car yourself (if you have a title), paying off what is owed and profiting from the sale if you can. To do this you need to know what they are presently valuing the car at. Add in your "inequity" and that is your break even price. Then find out what the car can sell for by checking Kelly Blue Book or Autotrader.com. There are book values and actual values. Autotrader will tell you what that car is selling for in a particular area. Since not all markets are the same, you can cross reference both and come up with a number and try to sell the car.

OR... you can find a bank to finance the deal and send them a check. OR.. you can ask them to carry the note for a reasonable interest rate.

Bottom line, attorneys are expensive. But don't give back the car at wholesale when you paid retail just 60 days ago. The way I see it, their finance dept dropped the ball and they need to eat it. But you need to get this wrapped up ASAP.

Answer 3

Since you are not working, money is probably tight. Something smells rotton to me. Below are 3 options - I have used all 3 successfully in Richmond, Virginia.

1. CHANNEL ## ON YOUR SIDE
Many tv stations have a Channel ## On Your Side where they investigate consumer complaints and help resolve the issue. The fear of a little publicity does wonders to get people to negotiate. If the car dealership does a lot of advertising at the tv station, you will not get any help from the tv station. But most used car dealers do not advertise on tv. This should be your first option. (In my area, a woman told the tv stations she needed a car because hers had died. A local Ford dealer donated a used car[about 3 years old] - for free. This was mentioned in each news broadcasts for a day - giving the Ford dealer great publicity. Hey you can trust this dealer!)

2.Most states have a State Office of Consumer Affairs. Call them to get their forms so you can submit a written complaint. (Check your phone book or website for your state.) They will investigate - at no cost to you. Anything they find will remain on the used car dealer's record.

I have used this approach several times (since 1975) and gotten much better results than contacting the Better Business Bureau (in my opinion, a waste of time).

Your state's Consumer Affairs should assign an investigator - who will try to work out a settlement between the 2 of you. If they find anything criminal, they will pass it onto the state's Attorney General for criminal prosecution.

Either way, the fact that you file a complaint with your State Office of Consumer Affairs, means that complaint will stay on record - and people can view some of the details - for years.

From my experiences, you need to start keeping a diary of events; all correspondence, and stop talking to them over the phone (how can you prove who said what and when was it?).

The number 1 type of complaints they get is about car dealers.

3. Another route, is to check with your state Corporation Commission to find out who owns the car dealership. Then send the owner, a certified letter (with return receipt so you have proof they received your letter). You also should keep a copy. Do not make accusations that you cannot prove in court. Just explain what has happened and what you feel is a reasonable solution. State: I we cannot reach an agreement within 14 business days, I will submit a complaint to xxx (your state office of consumer affairs). I have done this several times, and it does wonders for motivating companies.

YOU NEED SOMEONE WITH MORE EXPERIENCE TO TAKE A HARD LOOK AT THIS.

Good luck.

Answer 4

Wrong. They didn't default, you did. They are out the money they spent to pay off your vehicle. They are out the time and effort of putting together the deal for you. You are no longer in the same position, because you now don't have the proper credit requirements to finish the deal. They didn't make you lose your job, so they can't be responsible. You will have to give the vehicle back, and pay something for the time you were using it. Why would they give you a vehicle free of charge for the time you had it?

Go to the law office if you want, but I doubt you will prevail if you do.

Answer 5

Having a minor concussion is not going get you much in a settlement amount. There is a threshold for Personal Injury cases. You need to have death, permanent dismemberment, loss of fetus, permanent limited use of extremities. Two days in the hospital with a final diagnosis of a concussion is on every Personal Injury attorney's desk, and they are nothing cases because they don't fall into the legal threshold of personal injury. Just go through the insurance to recover property damage to your car. However, keep an eye out on your health and make sure to file for no-fault insurance within 90 days of the accident to safe guard yourself. Most serious injuries from a car accident don't show up right away. You have three years from the date of accident to file a lawsuit.

Answer 6

Sounds like a classic "Spot Delivery" scam. If the dealer is rolling back the deal, they have to return your trade to you. 2 months is WAY too long to get financing approved -- and I'm suspicious about "FedExing" contracts back and forth on a car sale. This doesn't make much sense.

However, since I don't know what XXX is worth, it's not possible to answer your question further.

Answer 7

Just go to the law office, they will surely give you better advice than you will get here.

Answer 8

I think so, but honestly your best bet is to ask a lawyer for advice.