Am I being given the run around?

Question

I recently bought a new car 2 weeks ago. I traded my car in which I only owed about $800 on. The new car dealer has yet to send the pay of for my trade in. The bank says I am still responsible and that this is affecting my credit, since the payment shows as late now. I have talked to the financing department and they informed that nothing was wrong and that the check was cut and ready to be send out. 3 Days later and the bank has yet to receive the pay off. I bought the new car through a very big and well know dealership in Orange County. I am beginning to think that I am being put through the " the financing fell through scam" since my credit is not perfect. What can I do?

How long does a dealer have to find a bank to finance the loan? Is it possible that after 2 weeks they still have not found a bank and can take the car back?

Answer 1

Talk to a reputable lawyer, he will tell you what you can do.

Answer 2

The facts are that financing can take 2-4 weeks at a high volume dealership. They send the bid out to two or three finance companies and then often have to negotiate a final settlement.
The bank is correct that you are responsible until the car is paid for. Since you are driving a new car and no payments have begun, that does not seem like a real tall order. It just means that you will probably get a check for the overpayment.
The dealer has more at stake than you do. They sent you off in a new car on a promise and an old car. The car's resale value dropped as soon as it was driven off the lot and they do not want it back.

Answer 3

Well, they may have already sent the payment and the bank has not credited your account yet...ir if they didn't put enough information with the payment, it's just sitting there. Contact the dealer and let them know the bank has not received or processed they pay off and they are starting to bug you for the payment. If their finance department gives you a hard time, speak to the General Manager. The dealership is responsible for making the final payoff. And if they are late, they have to pay any late fees. You could ask them to see a copy of the pay off check they sent the bank. Personally I would go to the dealership and make some waves...be firm and don't back down. Stay there until they confirm the bank has received the check and credited your account. Make sure you get the name of the person you or they speak to. You could even ask them to have the bank fax over a receipt for the payment!! It is also in their interest to get the payment to the bank. They won't be able to sell the car until they have the title, and the bank won't send out the title until the car is paid off. And the longer they wait, the highter the late fees will be! I know it is a pain in the butt, but it is your credit that is on the line here. Is it worth the bother?? To me it would be.
IF you threaten a lawyer or whatever, just be sure you are willing to follow through with it. I don't thnk it will come down to that, but.
In my experience, it isn't always the dealer that causes this type of stuff to happen. Banks are notorious for misplacing or misfiling information. The dealership may have sent it to a different location than the pay offs are supposed to go, like a different branch. Some banks have one specific address to sent ppayments and a completely different address to send pay offs.

Answer 4

Legitimate auto dealers can take upwards of 30 days to finalize the payoff of a traded in vehicle and send in the check, so just check with your bank on a daily basis and stay on the dealer's *** about the trade-in

Answer 5

Don't know where you are located but if that happened to me in Pennsylvania.

1st I'd report the incident with the local authorities

2nd I'd get the Attorney general involved

3rd I'd contact the better business bureau and submit a claim.

4th I'd contact my attorney and bring forth charges against said company.