01-28-2013 12:36 AM
I purchased a new truck while back (Paid way to much for it) and took out a loan thru the dealership. Due to collection of fortunate events I was able to pay off the loan in its entirety with couple months, Received lein release and all. Flash forward another month, Yesterday, I got a call from the dealership finance office, The finance guy claims they are showing a balance due for the truck in there records for $900. When I asked why, He said something about the loan not paying the entire balance of the truck. I told him I am not paying a dime, asked why I have the truck if the entire balance wasn't paid and why I am only hearing about his now. Anyways, basically a back and forth between him and myself for few minutes, He basically told me they would reposess the truck. I asked how can you reposess the truck when I have a full title without a lein in my name. He tells me "Oh well we have a lein, Its just not recorded on the title." Having worked at the DMV in my college day for a few years, I know this is BS and tell him as much. He tells me at the very least to expect a summons. At this point I tell him to expect me to file a counter suite and just hang up.
I have never heard of a dealership doing this and I have purchased many cars from many dealerships. I know they have no claim to my truck. I can't figure out why they would call me like this. I know they have no leg to stand on, I have all the paperwork and everything. What gets me is they should know this, yet for some reason, they are trying to shake me down for some money.
Anyone ever heard of this happening before? Am I missing something, From my perspective they have 0 claim, But maybe they know something I don't?
01-28-2013 04:52 AM
I have only heard of this when you have a rule of 78's type of loan which I don't even think is used anymore. Read the finance agreement. Some auto lenders now call that type of interest "add on interest". That means if the loan was to generate *pulling number out of air here* $5000 in interest than the $5000 is due even if the loan is paid off immediately after taking out the loan. The full liability for the interest is created with the signing of the contract.
This is the opposite of a normal simple interest loan which is prevalent in the market today. However, some subprime lenders like those little mom and pop shops at the corner dealership (like Drive Time or similar) use this add on type loan. It's a really bad loan.
However, having said the above, I don't see how they could repo anything from you if you have the title without a lien. It doesn't make sense to me.
IMO, I would get out your contract to make sure you don't have one of the funky add on type loans and go to an attorney and have the attorney send a letter before they ever contact you. That way if they attempt to ruin your credit with a derog TL you have a paper trail to have it removed. JMO.
01-28-2013 01:47 PM
No, It was a simple interest loan. The loan was with chase thru the dealership. I have looked over all the paperwork and it specifically says that there is no penalty for paying off early, and even if there were that would be between chase and myself. And infact chase sent me the lein release after I paid it off. It is specifically the dealership asking for money. I am just dumbfonded as to why all the sudden they would be asking for money. The paperwork I have clearly shows, Trade-in + Loan + down equaled full price of the truck. Someone mentioned to me that maybe by paying off the loan within a couple months I somehow hurt the dealership, But I don't see how or why I should care.
I think my only real option is to ignore this and see were it goes for now. I have had many loans and never had an issue like this before, Im still a bit in shock.
01-28-2013 01:52 PM
Wow, that is very weird.
It doesn't sound like a legitimate thing at all since Chase was your lender and they are the one's that have the lien, now fully released since your payoff. It almost sounds like some sort of scam that someone in the dealership could be running.
Ultimately I think you are right to ignore it at the moment. If anything comes of it, you certainly have your documentation to prove you paid it.
01-29-2013 06:43 PM
I would, but its more money and hassle than its worth, And I don't really have anything to sue for yet.
They called again today, and the guy that spoke with me more or less directly told me that they get a kickback for financing the loan. He told me that because I paid the loan off so fast chase didn't make any significant money off the interest so the dealership didn't get any commission. Who knew they would get that kind of commission from a loan. He then told me that since the price of the truck we agreed to was only if I financed through there dealership and they didn't get the commission from the financing, I owe them what they would have made on commission. My response was its not my problem and don't bother me again and I hung up.
So we will see what happens.
01-29-2013 06:50 PM
Wow, what gall that guy has for coming to you to even ask for additional funds! There can't possibly be anything in writing about the kick back so I would say he is SOL.
01-30-2013 12:40 PM
Sounds like basically, they maybe gave an extra rebate for using thier financing and since you paid it off they didn't get that money back. Problem is, you didn't pay the dealership off, you paid the bank off. If they want that money they need to go after Chase for it. Your contract was between you and the bank, not you and the dealer. And if there was to be a reposses, it would have been by the bank not the dealer.
I would tell this guy to go pound sand, they have no recourse.
01-30-2013 03:50 PM
The loan is between you and the bank, the bank already paid the dealer whatever the price of the car was. I financed a $36000 loan last year through Chase, paid the Ist month and paid off the loan after that, never had any issues.
02-01-2013 04:12 PM - edited 02-01-2013 04:16 PM
It sounds like Chase may have pulled back F&I's buydown and now the dealer is trying to scam you into making it up for them. I would demand an itemized accounting of what they say you owe them, and why. Until then, they are blowing smoke up your rear IMO.
Any pullback on a buydown is between the dealership and Chase. It doesn't involve you, and can't involve you. Chase told them to go screw themselves and now they're trying to flim-flam you into making up their loss.
I'd even go so far as to say that I suspect the F&I guy is doing this on his own. Call or go buy and ask to speak to the principal, and explain what is happening to him. Also contact the manufacturer if this is a franchise dealership. This will go away very quickly, and if F&I is doing this on his own. he'll be on the street.
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