In March 2013, I traded in my 2011 Kia Soul Base (manual) which I bought brand new for a 2013 Kia Soul Base (automatic) due to work injury of my right arm. I could no longer drive a stick shift due to having the world's worst tennis elbow. So I went to the KIA dealership where I got my 2011 Kia Soul and they let me drive off the lot without financing approved. (1st danger sign)
Had the car for about a little over month before they called me in saying everything was ready to go contract wise. This after I would call about when can I come in and sign the paperwork and seeing my old car on lot with its price written on front windshield, front and center ready to bought by a customer. So I went to the dealer with my stepmom and dad in tow. (Thank God) At first the FM was no worries everything ok but then oh I am taking a look at your contract and we need more money down. By the way by Stepmom and Dad loaned me 2550 to put down cause they understood I needed a car with an automatic.
My stepmom got real mad and said give me the check back and we will go to the Honda dealer. The FM all of a sudden changed his tune. By the way the put the wrong amount for the downpayment and had to reimburse us about $50. By the time the deal was approved my pay off letter had expired and about $60 balance was left. Took them about 3 weeks to get that straightened out which before they paid it off, they had sold my old car.
So I got to sign the contract, it included Gap Insurance ($800) and Extended Warranty ($1500) added to my contract along with the $2000 owed from my 2011 rolled into this contract.
This past summer, I called the warranty company and they did not have my contract number. After going back and forth with warranty company since the Car Dealership had gone bankrupt and the current owner was not responsible for any liabilities I was able to get a $900 credit for the extended warranty towards what I owed.
Soon after I decided to declare BK and not re-affirm my loan. (Thank GOD) My BK was discharged, got financing for a new Honda and so I called my Lein holder to come get my 2013 Soul. Wednesday night it was picked up and Thursday, guess what, to be nice I called the Gap Insurance Folks to cancel the gap on the Kia. Guess what, it was the same company that had the extended warranty contract and they did not have a record of my Gap Insurance contract.
I called my Lein holder and CS was like Gap insurance does not come into play until the insurance company tells them it it totaled. I tried telling them if the gap is cancelled they would get pro rated amount back. But CS did not want to hear this.
Oh well, I am not responsible anymore for this debt and I am not sure if it is worth it to pursue cancelling the gap at this point.
Moral of the story if your auto loan seems shady, verify that everything is correct and if not pursue legal action cause if you wait to long the owner changes and you are out of money and you are stuck with a bad contract.
