Auto Dealer Sold My Van Without A Title?

Question

Over the weekend we traded in our van and purchased another vehicle.
The trade in was paid off so I needed to bring in the title.
While I was there, the business manager says I need to bring in my wife and sign another contract because they needed to raise the interest rate by a half a point.
I said h3ll no, we got a deal and basically we got into an argument.
So I threw the keys on the desk, told him to rip up the previous contract and give me my van back.
That's when I was informed that it was already sold to a wholesaler who in turn sold it to someone else.
How can this legally be done? Looking to get a good lawyer now.

I tried calling the police outside on my cell phone.
They told me that it was a civil matter and they don't get involved in them and to contact an attorney.
I should of made it a criminal matter if you know what I mean...

Answer 1

Most dealers are covered on this or else they wouldn't do it.
Your contract is based on final bank approval.
Since the dealership doesn't actually loan the money (in most cases) they merely act as a "broker" for the loan and get a commission on it.
Until you get a title or manufacturer certificate (new vehicle), the deal really isn't done.
While I find it irresponsible for them to sell your trade before they know the deal is final. It is legal in almost every state since you more than likely signed a power of attorney to pay off your vehicle and take possession of the title.
So even though these things don't make very good business practices, it sells cars so managers keep doing it.

Answer 2

whether or not they could wholesale your car depends entirely on what you signed. When someone trades in a vehicle but doesn't have their title I always have them sign a duplicate title request form just in case they don't bring the title in. If this is the case then the title you hold is worthless. What they did with you is commonly called a de-horse. Put the customer in the new vehicle and process the deal on the assumption that the financing will be approved even if it's not likely to be. The customer then shows his new car to all his friends and relatives so when you ask for more $ he's too embarrassed to back out of the deal. You may have signed a form that states the deal is contingent on you receiving financing at reasonable rates. This gives the dealer the ability to bump your rate. The one thing you have on your side is that they need the new contract to complete the deal with the finance company.If you don't sign, they don't get paid. If they sold your trade & don't have a deal they owe you the value of the trade as stated on the contract.. They may try to reduce this amount by charging you for the time you used their vehicle. Once again you may have already signed a form agreeing to this.

Answer 3

Your problem isn't the title to your van. You are a victim of one of the oldest cons in the used car book. The dealer hands over the keys to the car before your financing is approved and then a week, two or even a month later informs you the interest rate has gone up or you need to come up with addition down payment money to get approved. Of course your stuck because he's already sold your trade in the day you walked off the lot. It's long gone.

Just stick to your guns, toss the signed contract in his face (you do have a signed financial agreement and bill of sale??) and tell him you're not giving him a nickel more and you'll sue him for breach of contract if he tries to change terms on you after the paperwork has been signed.

All he's doing is trying to extort money from you. Don't fall for it.

And yes, he has the legal right to sell your car. The dealership has a reasonable expectation that the title work from your trade in will go through and he can forward it onto whoever the new owner is whenever it arrives.


This is one reason I tell people to NEVER let the dealership do the financing. Get your pre-approved financing from a Credit Union or a local bank before you ever set foot onto dealership property.

Answer 4

The van was not his to sell if he was still negotiating a contract. Just a ploy on the managers part your van is in the detail department getting cleaned up to wholesale. Some dealers have a storage area and the wholesaler looks them over others get rid of cars to one used car lot right away. The Dealership does not set the interest rate the lending company does. Still have the new car ask your bank or credit union what interest you can get on this car for the amount financed? Warning Car loan Sharks are in a feeding frenzy!

Answer 5

If you never signed the title of your van your van was never their to sell. Call the police and make a report you will need it, I would rent a vehicle if you need one, because in the end the Dealership will have to rein burs you. I would contact a lawyer after I call the police, because having the report will ensure your lawyer will get paid in the end and will doubt that you wouln't win. However if you signed a contract with them in order for them to get off they must give you the vehicle you purchased from them at the initial price of the document, and that makes you liable to pay for the vehicle you purchased. If you where told to sign another contract before you were given your new vehicle then automatically they are braking your previous contract. Just to make sure call the police get a report and then call a lawyer. GOOD LUCK...............

Answer 6

Didn't you have to sign the original title when you bought it? It would also have been marked salvage. Probably they do have some responsibility to disclose the salvage title, though. It's worth looking into.