topic Re: What do I do? in Auto Loans

What do I do?

Anonymous — Wed, 20 Apr 2016 13:30:17 GMT

Hello all,

I received approval from USAA to buy another car back in September 2015. I went to the dealership and bought a used car that I really liked. Signed the contract and gave them the blank check and went home with my car. Fast forward a few months and somehow they say they finalized the check and faxed it to USAA, but USAA never received it and the dealership can't prove that USAA received it. So fast forward to February 2016 and USAA finally receives the check, but now it's expired. They bank calls me and tells me I have to reapply so I do and guess what I get denied. They changed from using Equifax to Experian and my score is under the threshold with Experian. So I say let me look at my scores and see if I can see any errors and fix it. Fast forward to April 2016 there isn't any difference between the two reports, Experian still scores me lower so I can't get approved. I have the car and the title.

Does anybody know where I stand legally? The car has depreciated and if I get a new loan through someone else or the delearship it's going to value the car less. Am I required to pay the same amount for the car, could I just give the car back or am I required to do anything since they let the check expire.

Any guidance will be greatly appreciated.

Re: What do I do?

Anonymous — Wed, 20 Apr 2016 15:00:18 GMT

If you have the car, the title and I assume all the signed paperwork, then its their burden to carry not yours. I would let nature take its course and see what happens. They will have to push the loan through. The dealer will have to recon the decision. Again this has NOTHING to do with you.

Re: What do I do?

Anonymous — Wed, 20 Apr 2016 15:18:06 GMT

@Anonymous wrote:
If you have the car, the title and I assume all the signed paperwork, then its their burden to carry not yours. I would let nature take its course and see what happens. They will have to push the loan through. The dealer will have to recon the decision. Again this has NOTHING to do with you.

Bad advice. It does have something to do with the OP. The dealer cannot recon with USAA as for one it's not their lender and two USAA does not recon any credit decision ever. There is no 'pushing the loan' thru. The dealer can and probably will repossess the vehicle if the OP does nothing. His best bet may be to take the vehicle back and tell them here's your keys and walk away. I'm shocked that the dealer has let this go on this long.

Also the OP does have some responsibility for the situation. When he took delivery of the vehicle and then no notice was received from USAA that the draft had been completed and the contract finalized he should have been proactive and found out what was going on. You don't turn in a draft to a dealer and all of a sudden have no payments due.

OP, what communication have you had from the dealer recently? Have they offered you in house financing for the same terms as the USAA draft? Have they told you to bring the vehicle back? Do you have copies of all the paperwork you signed including any conditional sales contract?

Re: What do I do?

6speed8 — Wed, 20 Apr 2016 15:33:53 GMT

I would not sit idly by. Five years ago, a friend was looking for an 04-06 GTO. Found one at a dealer an hour away so I drove him out there. Red, 6 speed, 104,000 miles but immaculate. Owned by a Marine. He put $1000 down, signed the Capital One paperwork and left. Three weeks go by and no payment info from Capital One. At that time, Cap One was capped at cars with 70,000 miles. So when he called them, they said they cannot honor the terms. If he wanted to keep the car, it would be half the duration with nearly double the payment. Like the dealer NEVER did business with Cap One and didn't know 70K was the cut off. I followed him back to the dealer, handed them the keys and sat there until they gave him a $1000 check for his down payment. Sure your dealer EFF'd up but don't sit by waiting for them to correct - or not correct - the situation at your expense.

Re: What do I do?

6speed8 — Wed, 20 Apr 2016 15:43:30 GMT

Also, I'm no contract lawyer but this is THEIR EFF UP. Don't let them intimidate you into accepting off the wall terms to keep the car, owe them money for mileage/depreciation,etc if you hand them the keys.

Re: What do I do?

Anonymous — Wed, 20 Apr 2016 22:19:01 GMT

So Yes I should have been more proactive when I noticed the loan expiration date was getting close instead of waiting until after it expires but I just assumed they were taking their time. I contacted them once it expired they said they were on top of it so I left it alone. Then in February when they called and USAA finally received the paperwork that's when I started taking action. I have signed contract from the delearship and couldn't find anything in the fine print dealing with this type of situation. What does OP mean by the way? Anyways. Can they repo the car if I have the title and its in my name? I called them Friday and told them after a long talk with USAA that USAA has agreed to honor the check if they can prove USAA received it and it was USAA's fault. They said ok and I haven't heard back yet but it's only Wednesday. Would I just sign the title back over to them and hand them the keys if I wanted to walk away? Can they come after me legally if I decide to walk away from the car?

Re: What do I do?

Skye12329 — Wed, 20 Apr 2016 23:14:51 GMT

They could repo it. But if they take it back, make sure you get your down payment back since the loan didn't go through.
OP means other post
As for the title, its odd it would be to you. I say this because usually the title has the lien holder owning it and then you get it when its paid. This is just a mess.

Re: What do I do?

Chris679 — Thu, 21 Apr 2016 00:55:59 GMT

OP stands for Original Poster. It is easier than typing out a user name.

Re: What do I do?

exCYter — Thu, 21 Apr 2016 05:14:48 GMT

They're going to repo a car they don't possess the title to? Would love to see a repo company that would touch that one. Bottom line is it sounds like the dealer lost the check, never submitted it, found it but submitted it too late. You can either give them the car back and walk away or you can try to play hardball and make them match the payment/terms you were offered somehow--whether they finance it themselves or they find a different bank.

Your loan with USAA was never executed so you have no path there.

Re: What do I do?

Anonymous — Thu, 21 Apr 2016 12:41:17 GMT

Well I sent the title off to USAA, but after all this cluster they sent it back to me. So the title is free and clear in my name at the moment. Seeing how long it's taken them this long to call me back I think they realize they are in the wrong. I didn't think they could Repo a car with me having the title. I'm going to see if I can reach out to a lawyer and figure out where do I stand legally at this point. I really like the car so I'd rather keep it but they aren't going to corner me either. if anybody knows a lawyer can they ask them where I stand legally?

Re: What do I do?

nycplayboy78 — Thu, 21 Apr 2016 13:44:48 GMT

@Anonymous wrote:
Well I sent the title off to USAA, but after all this cluster they sent it back to me. So the title is free and clear in my name at the moment. Seeing how long it's taken them this long to call me back I think they realize they are in the wrong. I didn't think they could Repo a car with me having the title. I'm going to see if I can reach out to a lawyer and figure out where do I stand legally at this point. I really like the car so I'd rather keep it but they aren't going to corner me either. if anybody knows a lawyer can they ask them where I stand legally?

YES!!! This is the BEST option for you. Seek legal cousel because you DON'T want any sort of REPO or JUDGEMENT on your credit file due to either a dealer error or bank error or their parts.

Re: What do I do?

jim44 — Thu, 21 Apr 2016 17:00:13 GMT

@Anonymous wrote:
If you have the car, the title and I assume all the signed paperwork, then its their burden to carry not yours. I would let nature take its course and see what happens. They will have to push the loan through. The dealer will have to recon the decision. Again this has NOTHING to do with you.

Yes and no. There are a few steps that should have taken place in this process. 1st when USAA never received the blank check from the dealer in a 30 day period, USAA should have sent you notice that credit was never extended to you. USAA as lienholder SHOULD have been printed on your Bill of Sale from the dealer and the amount financed shown on the bill of sale that you stated you signed.

The dealer screwed up by presenting your title work to the local DMV without listing USAA as lienholder, however they should have had you sign a "SPOT DELIVERY' notice stating that the dealership doesn't extend credit nor do they lend money and if your contract with USAA for any reason is rejected, you must return the car.

What is not understandable is how a dealership can deliver a car and not press USAA for immediate payment when the 30 days elapsed. NO contract is valid after 30 days if its not executed and the dealership knows this. I mean the dealership should have been saying" OK, it's been 30 days where is the funding from USAA for this car.

In the end the dealership messed up but your intent was to enter into a contract to buy the car with funding from USAA. You must have "signed" a retail installment contract with USAA even if it wasn't executed by the dealer. You should have known the loan failed if after 30 or 45 days you weren't contacted by USAA about setting up monthly payments. The dealer should be able to show that you never actually paid for the car. Like other posters have stated, IMO I wouldn't wait for the dealer or the dealer's lawyer to come knocking at your door. I would contact the dealer, USAA or another lender and work something out. JMO.

Re: What do I do?

Anonymous — Fri, 22 Apr 2016 00:47:31 GMT

Everything through USAA was electronic. I already use them for everything else as well as another car I own so they were supposed to just start charging me after everything processed. The same way it did with the other vehicle. I did not sign any kind of spot delivery notice nor did they put down USAA as the lien holder on the title. I will be reaching out to get some legal advice to see what am I legally obligated to do. I have already gotten an approval through capital one and the dealership is patterned with capital one.
Do you think I should try to go off the existing contract or start a new contract? The only issue im looking at now is the vehicle will be valued less than the initial purchase price due to the mileage I've accumulated plus the vehicle being slightly older.

Re: What do I do?

jkjklkjkl — Fri, 22 Apr 2016 20:06:24 GMT

I wouldn't press looking for a new car, I would sit back and wait for the dealership and USAA to figure it out. I would get a consultation with a lawyer, just to be in the know, but today may be your lucky day that ineptitude works in your favor. If you've done your part to facilitate both companies, then you've done your due diligence. I would continue to provide any information requested, though.