Auto Loan Unwinding - Dealership not accepting my cash

[Anonymous]

Hey guys, need advice on my current situation.  I purchased a vehicle from Carvana, went throught the application and i was able to obtain financing through sub prime lender, Bridgecrest.  I know Bridgecrest is probably involved in some shady business but i need to rebuild my credit and thought i can refinance in 6 months or so.. Anyways, here is the situation.  Carvana delivered the car and processed my 1200 downpayment via ACH Debit.. The bank declined the transaction due to insufficient funds (yes my fault).. However, I called Carvana 4-5 days later and asked them if i can wire the money to them, cut them a certified check or pay with my debit card.  At this point, they are declining my money and say that they want the car back or they are going to repossess it and that they will not accept any cash becasue i defaulted and they wont allow me to make good on the Down Payment..  In the mean time, my account balance with Bridgecrest is about 23k.  According to my credit report, the leinholder is also Bridgecrest and my account is in good standing..  I called Bridgecrest and they said Carvana wants to Unwind the loan - what does this mean? Can they unilaterally unwind the loan?  Also, in addition to this, a section of the Carvana contract state that any miles driven above 400 miles will be charged $1 a mile, i feel like they are trying to screw me on this one.. I have the cash to make good on the downpayment (I HAVE CERTIFIED FUNDS), they just wont accept it!! What should I do?  I know the payment was initially declined, but I already have an open account that I intend to fully make good on..  Can Carvana legally do this?  Is this a direct violation of the Unfair/Deceptive Trade Practices Act?  Please help as I do not know how to proceed.  By the way I reside in Texas

[Anonymous]

Hello and welcome to the forums!

To answer your biggest question - Yes, its legal.

A dealer can exercise a valid contraction right to rescind the contract before the contractual deadline passes. This often occurs when financing is not secured.

Also, since you took delivery of and operated that vehicle, this transaction will be treated as a rollback, not an unwind.

You should probablt speak Carvana and try and convince them to use a different lender. At the same time, it would not hurt engaging a credit defense attorney.

Good luck!

[Anonymous]

Hi thanks for your answer, financing has been secured as i stated in my question.. There is an open account with the Lender (Bridgecrest).. it is Carvanas decision to not accept my payment, not the Lender.. Thinking this is more a Deceptive/Unfair Trade Practices case?

[Anonymous]

In short. Yes they can take the car back. They have a policy in place that if someone fails to provide funds. Which you did that will cancel the contract. Its nothing personal against you I'm just sure they've had situations where customers promise to send funds and never do. This ensures they never get burned. As others have said try calling a attorney and see what your options are.

[Anonymous]

People, please read the question and details before providing (Moderator Edit) answers.  The question is.. can the dealershio REJECT MY CASH WHEN I AM TRYING TO WIRE THEM MONEY?

[Anonymous]

Reminder to everyone.  Please ensure your posts follow the guidelines listed here:  Friendly, Supportive and Respectful.  Thank you for your understanding and cooperation.

[SarahJo]

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@Anonymous wrote:

People, please read the question and details before providing (Moderator Edit) answers.  The question is.. can the dealershio REJECT MY CASH WHEN I AM TRYING TO WIRE THEM MONEY?

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Yes

[Anonymous]

I'm sure it was stated somewhere in that looong drawn out contract you neglected to read. It usually is.

Though this type of incident doesn't look good on them if it was a simple mistake, and one is trying to correct it. You could also contact the BBB, and see if they could offer some type of assistance in resolving this. 

[Anonymous]

Why did you wait 4-5 days? My guess is they probably tried to contact you.

Look at it from their perspective. You have the car and they have nothing.
The terms of the loan is contingent on you making the down payment. So they cannot collect anything from the lender without the initial terms being met

You essentially going to end up having to get a new deal done. Don’t hold onto the car. “Unwinding” a car deal is nothing to your credit. If they officially file to “repo” you are screwed credit wise.

[Anonymous]

Hi  there!  I just read your story, I hope it ended well for you. My son has a similiar situation , were you able to work out your situation with carvana? I am looking to engage in an attorney since his downpayment was pulled from his  bank account from Carvana, and Carvana repo his car . We feel it was wrongfully repo. He has made all his payment to the lender, but carvana states they did not receive his downpayment and tht is the reason why his car got repo! Any feedback is appreciated!  Thanks