topic Re: Dealer wants car back over downpayment in Auto Loans

Dealer wants car back over downpayment

Anonymous — Sun, 21 May 2017 02:39:43 GMT

I bought a used 2010 Altima last Monday 5/8 and was to pay 1500 down payment. I gave 1000 and had a few days to pay the rest of the 500, I added the car to my existing insurance, signed my contract stating the 1500 was paid and left with the car. It was financed, the finance company called me the next day confirmed everything and sent a welcome kit. And confirmed my next payment day.

Then a few days later on that Friday the dealership said the deal was gonna be canceled if I didn't pay the other 500 right away and they would take the car. I called my finance company to double check if that was correct Bc I needed a few more days as I was siting on my paycheck and the dealership knew that. The finance company escalated this to there legal department and said they would call the dealership and myself in a few days.

I got a call on this last Tuesday from the finance company and they said that the contract states the 1500 was paid and I don't owe them any more money. I told her I only paid 1000z she said that it doesn't state deferred payments so I don't owe anything else to them and I'm not to pay them anything else. And all future payments are to be paid to the finance company. The dealership called me the same day and left a vm stating they wanted to settle the remaining balance even after talking to the finance company. I called back and left a message.

I get a call today Saturday stating I owe a balance and if I don't pay return the car.

Who should I believe or what should I do. I was gonna pay to end it all but the finance company told me me not to and the dealership knew I needed a week to pay and demanded the money back abefore that time. If the car I was paid for by the finance company should the dealership keep calling me. I'm just confused.

Thanks

Re: Dealer wants car back over downpayment

Anonymous — Sun, 21 May 2017 03:04:39 GMT

I meant to say I was waiting for my paycheck*

Re: Dealer wants car back over downpayment

Anonymous — Sun, 21 May 2017 04:31:52 GMT

The problem is your confusing the finance company's business and the dealerships. The dealership takes and down payment from you and the remainining payment from the finance company and then you make payments on the balance to the finance company plus interest. The fact is the finance company is fine, they will send payment to the dealership for the balance owned and you will make payments to them. The dealership is the party short the $500. I am shocked that they would let a customer defer a portion of a downpayment, they did so and now you owe it to them. You need to pay them thr $500 and be done with it or return the car and get your $1,000 back and go through the whole purchase process again. Did you have a written agreement for when the $500 would be paid? If so what day was a agreed upon?

Re: Dealer wants car back over downpayment

Anonymous — Sun, 21 May 2017 06:16:40 GMT

No there was no written agreement. The finance company already paid for the car and paid the loan amount as per my contract. They said they own the car now and not the dealership. The finance company said that the dealership did not state a defeated downpayment was fine and per the contract it was paid in full. And that I was not to pay the dealership any more money as that the downpayment is commison money for the sales person. And it was verbal that upon my next paycheck I would pay remaining but they we're demanding it prior to the day. 4 days after I bought the car.

Re: Dealer wants car back over downpayment

Anonymous — Sun, 21 May 2017 08:28:02 GMT

Honestly, the dealership did you a favor by paying your downpayment in full ($1,500) to the lender while the dealership gave you extra time to come up with the $500 to fulfil your part of the deal.

The lender doesn't know anything about what goes on in the dealership they only see paperwork. When you make a downpayment that payment is made to the dealership then the dealership sends in your contracts along with your downpayment. Neither you or the lender knows the commission structure of that dealership so that downpayment doesn't necessarily only go to their commision.

If I were you, make it right and pay $500 to dealership as verbally made an agreement. Worse comes to worse the dealership can also file civil claim against you.

Re: Dealer wants car back over downpayment

Anonymous — Sun, 21 May 2017 10:26:12 GMT

I agree with the other two responses. You made a commitment to the dealership, and should do the honorable thing; which means keeping your word. You may be able to get away with not paying what you promised, but what would that say about you as a person? I'm sure they'll sue if you don't pay (I would), and even if they lose, you'll be out more than $500 from loss of work, lawyers, etc.

Re: Dealer wants car back over downpayment

StartingOver10 — Sun, 21 May 2017 14:24:22 GMT

OP, in your first post you said that you paid $1000 toward the $1500 down payment requirement on your contract and you had a "few days" to bring in the $500. This was as of Monday May 8, 2017.

Your post was made May 20, 2017 and you still haven't paid the $500 due to the dealership per your agreement.

First, I am not a fan of deferred down payments because if you can't afford to make the down payment in full, then you shouldn't buy the vehicle.

However, since you have already signed a contract that says you gave $1500 at the time of purchase, it is disingeneous of you to now claim you don't owe the $500 you promised to pay. The lender that issued the loan didn't know that you were participating in loan fraud - or they wouldn't have issued the loan.

Make things right. Pay the $500 you owe - now. Then make all of your vehicle payments on time to the lender.

Re: Dealer wants car back over downpayment

Anonymous — Sun, 21 May 2017 14:28:34 GMT

This is really odd. I am by no means an expert. But if I were granted a loan contingent on paying a balance on a set date, I would make good on my promise; as the dealer made good on theirs.

Best of luck to you.

Re: Dealer wants car back over downpayment

adavis425 — Sun, 21 May 2017 18:22:36 GMT

I don't understand where the confusion comes in. The dealership spotted you $500 so you could drive away AFTER you signed a contract committing to pay $1500. You clearly owe the $500 and as someone mentioned above, the financing company doesn't know what goes on in the dealership. They only get the final paperwork and go from there. You owe the dealership.

Re: Dealer wants car back over downpayment

Anonymous — Sun, 21 May 2017 18:46:09 GMT

Stories like this is why so many dealerships no longer will "hold a deposit check until next month."

I remember when I bought a car in 1994 or so; the dealership accepted 2 months of postdated checks towards the deposit. Was no big deal, I just called them to let them know when to deposit each check and I had my car months ahead of time.

Nowadays, more and more dealers won't close a sale without 100% deposit made at closing.

Re: Dealer wants car back over downpayment

Anonymous — Sun, 21 May 2017 23:24:15 GMT

Loan on 5/8 with a few days to pay the rest of the down payment you owe.

You posted this on the 20th. So it has been a few days many times over.

The dealership will NOT be able to pull your loan with the finance company.

Worst case is they keep calling you. You never pay and they are out of the money.

You made a agreement to pay. Verbal. They could have held the car until you made the rest of the down payment but they gave you the car. Bad credit dealer or not, it's a crappy thing to skip out on your obligations IMO

Re: Dealer wants car back over downpayment

Anonymous — Mon, 22 May 2017 03:01:15 GMT

Bet the dealership doesn't help the next person out when they are in a bind and don't have the full down payment. Unfortunate

Re: Dealer wants car back over downpayment

Anonymous — Mon, 22 May 2017 05:24:36 GMT

I know several dealerships that want the downpayment in the form of cash or cashiers checks only. No pay later or personal checks allowed

Re: Dealer wants car back over downpayment

stellar — Mon, 22 May 2017 07:17:46 GMT

Guys, You have to remember that some people on this forum are VERY YOUNG or just inexperienced. If she said she was confused bc 2 parties were saying diff things, then she was confused.

workingfor850 and beastmode did a good job clarifying the issue I think.

If you attack people and make them feel bad then no one will want to post their problems on this forum.

Re: Dealer wants car back over downpayment

StartingOver10 — Mon, 22 May 2017 20:48:30 GMT

@stellar wrote:
Guys, You have to remember that some people on this forum are VERY YOUNG or just inexperienced. If she said she was confused bc 2 parties were saying diff things, then she was confused.

workingfor850 and beastmode did a good job clarifying the issue I think.

If you attack people and make them feel bad then no one will want to post their problems on this forum.

Stellar, I have been thinking about your post.

None of us want to attack anyone for not only the reason you post, but because it isn't helpful.

We are here to help people as much as possible and to do it in a supportive and friendly way.

Some posters need a more firm approach to get them to see their errors in thinking through their problem. It is sometimes difficult to post in such a way that doesn't come across as harsh. Thank you for the gentle reminder to keep our posts supportive and friendly.

Re: Dealer wants car back over downpayment

JGGM — Mon, 22 May 2017 22:04:00 GMT

My dealership has made arrangements like this in the past to customers. The difference is we don't submit everything for funding until the full down payment is received - so that we can "repo" a vehicle if needed.

Re: Dealer wants car back over downpayment

DeeBee78 — Tue, 23 May 2017 22:15:13 GMT

I did this 5 years ago when I needed a car pretty bad, and only had $1000 (just starting a new job after a cross-country move). Dealer wanted $1500 down payment, and gave me an extra month to come up with the funds.

I signed a deferred down payment contract with the dealership, where I agreed to pay a portion of the down payment at a later date. I also had to give them a blank check, so they could EFT the funds out of my checking accoount.

The contract stated that if the funds could not be pulled, the dealer would send the owed amount to an outside collection agency. Chances are this is what is going to happen to you as well.

Is it worth ruining your credit over the $500 that you owe them? That's up to you to decide. Personally, after working so hard to rebuild, it's not worth it to me.

Re: Dealer wants car back over downpayment

trant3 — Tue, 23 May 2017 22:54:33 GMT

They did you a favor but "lending" the $500, you ought to pay them whats owed. Point blank, period. No confusion here.

Re: Dealer wants car back over downpayment

9CLINE — Wed, 24 May 2017 01:13:07 GMT

+1 Take them the money......

Re: Dealer wants car back over downpayment

Anonymous — Wed, 24 May 2017 05:11:10 GMT

Let me say this again I never signed a deferred payment contract, I never paid with a post dated check. I said a few days as a generalization bc I was waiting for my paycheck which I had just received on this past sunday. I never knew the dealership put that the downpayment was paid in full on the contract. I was informed by my finance company legal
Department that they had not notified them of deferred payments in the contract and regardless of if I owed them the 500 not to pay them and all funds would be given to the finance company going forth.

I also was only trying to make sure that my car was not going to get repo'd by the dealership and I called the finance company to see if they had the authority to repo it.

As Stellar said I was confused. But y'all are very quick to say I was going to take advantage of the dealership bc they did me a favor , but I never said I wasn't going to pay I just said who do I believe.

And you all are very judgemental when all I read in here is tips of how to get around this or that, and what not. I learn a lot from this forum but I prob won't ask another question.

Oh and I paid the remained on Monday. Thanks