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Dealer paying off old loan for new one

Coffeelover2020
New Member

Dealer paying off old loan for new one

So, I recently rolled some negative equality into a new car loan and it is a much better deal all around. The dealer said they would pay the vehicle off within the 10 day quote period. Well, It has ended on the 23rd (3/13-3/23) and I still see no notice on my bank lender account about this being paid off. I called and they said the dealer called on the 23rd- but couldn't say much more, they mentioned it could have been extended to April 2nd, and I guess they ate the extra 10 fee or what. I asked about how it would effect me with my payment date coming up (3/31). I informed my current bank lender holding this car that the dealer told me I would not need to pay anymore due to them paying the loan off. My bank with this loan told me not to worry, there is a 10 day grace period and they can't report a late until 30 days. Assuring me they would get a check before then. I have no clue who to call at the dealership and inquire about the payment status. I have no doubt they will pay this off- they are the biggest Toyota dealer in South Florida. But it's just my nerves and anxiety with payments, I stress over too much. Does anyone have an idea who to reach out to at the dealership maybe finanace dept? And has anyone encountered this situation? Thanks. 

Message 1 of 3
2 REPLIES 2
chiefone4u
Established Contributor

Re: Dealer paying off old loan for new one

Yes, you'd reach out to the finance department. 

 

If you are worried about a late payment, make your payment by the due date. When the dealership pays off your loan, your lender will refund you the over payment (depending on lender could be as little as 3 day's to around 90 days to receive the refund).

 

Congratulations on the new vehicle! 

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Message 2 of 3
Loquat
Moderator

Re: Dealer paying off old loan for new one

Solid info about. Even though you traded your previous vehicle and the dealership is to pay it off, know that you are still responsible for the account until it is indeed paid off.

Like mentioned above, I would make the payment and wait to be refunded if the dealer hasn't paid off before your due date.

In the mean time I would again take the advice above and call the dealership as ask for the office personnel who handles the payoff. Finance Managers are done with the deal the moment you sign unless for some reason they need to re-ink you.

Hopefully for you it's just a true situation of the classic "check is in the mail". With you saying that it's a fairly large dealership you're dealing with I'm sure it'll all shake out.

I just purchased a new vehicle myself and even as a former F&I Manager who knows the process I still follow up as m MSO hadn't arrived with about 4 days left until temp registration expired.

I phoned up the office staff and they hadn't sent it out yet but after my called they said they would send overnight for delivery...they did and all was well in the world.

Sometimes volume dealers get overwhelmed and with the mail service still being affected (slow) due to Covid, you have to make sure that the dealership is keeping your paperwork (or in your case the check) moving through the process.

Congrats on the new vehicle!!!
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