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Dealer wants car back over downpayment

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Anonymous
Not applicable

Dealer wants car back over downpayment

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

28 REPLIES 28
Anonymous
Not applicable

Re: Dealer wants car back over downpayment

I meant to say I was waiting for my paycheck*
Message 2 of 29
Anonymous
Not applicable

Re: Dealer wants car back over downpayment

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?

Message 3 of 29
Anonymous
Not applicable

Re: Dealer wants car back over downpayment

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.
Message 4 of 29
Anonymous
Not applicable

Re: Dealer wants car back over downpayment

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.

 

 

Message 5 of 29
Anonymous
Not applicable

Re: Dealer wants car back over downpayment

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. 

Message 6 of 29
StartingOver10
Moderator Emerita

Re: Dealer wants car back over downpayment

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.  

 

 

Message 7 of 29
Anonymous
Not applicable

Re: Dealer wants car back over downpayment

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.

Message 8 of 29
adavis425
Established Contributor

Re: Dealer wants car back over downpayment

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.

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Message 9 of 29
Anonymous
Not applicable

Re: Dealer wants car back over downpayment

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.

Message 10 of 29
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