car trade fiasco -- should I stop payment on deposit

[designated_knitter]

So I traded in my 2013 Nissan Rogue on May 1st for a 2014 Nissan Maxima.  It was through the Nissan dealership.  The dealership obtained the pay off amount and they were going to be paying off my old finance company (GM Financial).

New car is being financed through Ally.  

GM is callling me bugging me for my car payment.  I told them I traded the vehicle to the Nissan Dealership.  Nissan Dealership has already SOLD my old car (despite not having paid off GM Financial and having clear title.

Spoke to the finance department and they said that they hadn't received a check from my new finance company (Ally) and they don't typically pay off the trade until those funds have been received.  

I have no control over a) when Ally pays the dealership; b) when the dealership pays GM Financial... GM doesn't seem to care that I don't HAVE the vehicle any longer -- they just want their money.  The dealership doesn't seem to care that I'll wrack up a 30 day past due payment with GMFinancial (impacting my credit).  

Sooooo, the only thing I have control over:

I did give a post-dated check for 1500.00 which is supposed to be depositied on the 15th (this friday).  

Do I have any legal grounds to stop payment on that check?  Use the money to make sure GM financial gets paid so that I don't get a 30-day past due on that loan?

I feel like I'm between a rock and a hard place.  I don't trust the dealer at this point as far as I can throw them since they were trying all bunch of games to get me to pay more than we had agreed to.... not sure what to do here that won't ruin my credit or get me arrested for passing a bad check...

Suggestions? 

Thanks in advance.

[CH-7-Mission-Accomplished]

I would go ahead and make the next car payment just to preserve your credit.  You may be legaly correct but you will suffer the damage from the late payment.

It's not right but the dust will settle out within a month and you will get a check back from your current loan company.

[disdreamin]

I agree, I'd make the payment to your current lender. But I would also contact them and ask if they processed paperwork authorizing removal of their lien from the title. If they have not, I would go back to the dealership and ask them how they were able to transfer the title to a new owner.

FWIW, I read that there was a car dealer who was brought up on charges for scenario much like this. He was taking cars on trade, never paying off the loan, selling the owner a new vehicle and keeping all the cash.

[Anonymous]

Seems all this dealer cared about was closing the deal and making money.  I'd make payment so that you don't get reported as missing a payment on your reports.  I'd then call the dealership you got your car from and give them hell.

Put a stop payment on the $1,500.  Because if they deposit it and it bounces, it will force them to resolve the issue as they will want their money.  Once they fix it, write them a new check and subtract the payment you are going to pay to GM since it is their error.

Why should you be penalized for their mistake? So simply put,

-Pay GM

-Put a stop payment on the $1,500

-Write them a new check - what you paid to GM.

[designated_knitter]

When I talked to the finance manager -- they said they coudl "sell the car" -- the new owner just couldn't register it in their name until they got the title.  

I would understand this sort of thing if it was a little "buy here pay here" lot - -but we are talking about a regular full service Nissan dealership!  

Problem is, I gave a deposit that is more than 2 months of my old car payment.  I can't afford to pay my old car payment PLUS the deposit as well... That is why I was thinking of stopping payment on the deposit check.  But I bet that would get me in all sorts of other problems.... 

[Anonymous]

---

@designated_knitter wrote:

When I talked to the finance manager -- they said they coudl "sell the car" -- the new owner just couldn't register it in their name until they got the title.  

I would understand this sort of thing if it was a little "buy here pay here" lot - -but we are talking about a regular full service Nissan dealership!  

Problem is, I gave a deposit that is more than 2 months of my old car payment.  I can't afford to pay my old car payment PLUS the deposit as well... That is why I was thinking of stopping payment on the deposit check.  But I bet that would get me in all sorts of other problems.... 

---

Put a stop payment on it.  It seems this dealer lied to you and have not held their end of the bargain.  A true and reliable dealership will not be playing games like this. 

What are you worried?  They are putting the screws in you.  What are they going to do?  Take you to court?  They are probably worried about their shady practices coming to light.  

If I were you, I put a stop payment on the check.  The choice is yours.  Either have GM report you as missing payment on your credit reports OR take your chance with this sucker of a dealership...

[Ragelog]

I would pay GM no later then 29 days late so it doesn't report on your credit report. You will get a refund for whatever overpayment happens. I am not sure if a dealer is required to pay off a trade within 10 days some do but some take a little longer. In the end they have a sold a car that they will likely need to provide paperwork to the new buyer within 30 days of it's sale so. I would figure out a way to pay both. 

[CH-7-Mission-Accomplished]

Why don't you just go to the dealership and insist on meeting with the finance manager.  Tell him/her that you want this resolved now.  He/she can get on the phone and be the squeaky wheel to get the $$$ moving.

You can also tell him you are going to stop payment on your check, and if he says so what, do it while you are sitting in his office.

But you can bet they have 100 outs written into those contracts you signed, and every legal advantage will be in their court.

At the end of the day it is your credit that is at stake, so I would find a way to pay that car payment, even if I had to take a cash advance on my credit card.

[StartingOver10]

---

@CH-7-Mission-Accomplished wrote:

Why don't you just go to the dealership and insist on meeting with the finance manager.  Tell him/her that you want this resolved now.  He/she can get on the phone and be the squeaky wheel to get the $$$ moving.

You can also tell him you are going to stop payment on your check, and if he says so what, do it while you are sitting in his office.

But you can bet they have 100 outs written into those contracts you signed, and every legal advantage will be in their court.

At the end of the day it is your credit that is at stake, so I would find a way to pay that car payment, even if I had to take a cash advance on my credit card.

---

^^^This.  The damage from a 30 day late on an auto loan is a long punishment. Do what you have to do. Your finance contract with GM is still in effect until it is paid in full. You don't want to risk your credit for the slowness of this dealer.

As pointed out above, any over payment has to be refunded to you when Nissan pays the old car loan off.

[Anonymous]

Make sure to document, document, document. Who you talked to at each place and when and what they said. I would go in to the dealership, as stated, asking to have them exchange your post dated check for one that' is that amount less your car payment. I'd have it ready. I'd also have a written statement about what you're doing, exchanging the check, and be sure to include what you've been told by them, that they have the right to sell a car to someone that's not eligible for registration. I'd ask the finance manager or someone to sign your statement. They probably won't, and then I agree - make the payment even if you have to do a cash advance or something. Or, if going to the dealership doesn't sound like something you'd be comfortable with, still make the payment and see what happens over the next week or two.