Last post on Nov 20, 2013 at 9:45 AM
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Car Buying, Car Selling
#2949 of 3350 Re: Spare tire switching [kevinc5]
Apr 28, 2012 (5:11 am)
you got a full size spare? These days, that in itself is a miracle.
anyway, the brand doesn't really matter (since it should be on for only a short time), but I would be concerned about having a unidirectional spare. Not sure what that would do running "backwards" on one side of the car. A spare needs to be non-directional.
#2950 of 3350 Dealer made huge finance/contract error. Help!
May 20, 2012 (8:58 pm)
I need help and I am unsure what to do and how to proceed with the following issue. I purchase a Jeep 6 weeks ago in California and had financing through my personal bank. Went in to buy the car and as it was a Sunday I couldn't get a bank draft from my bank that day. I gave the dealer my down payment and signed an option contract, but told them I would be back in a day or two with full payment. I came back a few later with the bank draft and a second personal check in order to my the bank draft an even number. At this point the dealer had FULL payment for my vehicle. The dealer said the contract was full satisfied. Although, despite my asking several times didn't give me paperwork backing this up...not sure what I was suppose to receive?
I found out several weeks later that the dealer never cashed my bank draft (they only cashed down payment check) and that they filed for a loan with Ally bank-their lender that I was not aware of until I got a phone call for Ally saying my payment was late. I am working to Flat Cancel the loan with Ally, but I have two options moving forward and I need help to find out what I need to do in both cases and how to protect myself. One big issue is that the registration and title erroneously list Ally as the lienholder. I have the registration in hand but NOT the title yet.
Option 1: Keep the car but the dealer is telling me I have to sign a new contract as the numbers on my current contract don't match the bank draft due to the 2nd personal check I gave. Bank needs numbers to match for dealer to cash check. I am worried about signing a new contract. How will I be sure that the old one is voided and the new one is correct. Also, not sure what I need to do to correct the title and registration. Again, still waiting on the title.
Option 2: They will let me return the car and get my full down payment back. How do I ensure that the contract is fully voided and I am released from all responsibly on the vehicle. Again, what do I do about the title and registration.
Any advise would be greatly appreciated.
#2951 of 3350 Re: Dealer made huge finance/contract error. Help! [abgcdm]
May 22, 2012 (12:52 am)
That is a bit of a messy situation. I can see it happening on accident at the dealership, although yes of course it could have been done intentionally because sometimes a dealer prefers one method of financing vs the other. It happened once at my work to one of my customers simply because the paperwork goes to a different office as soon as you buy the car, and when you handed me or the finance person your check a few days later, odds of that info getting communicated to the person in the 'business office' are low. Its annoying but true. A few days pass and they simply proceed with the original loan figuring you never came in to complete your side of the 'option contract'.
If this entire deal is at a franchise name brand store, even if you bought a random used car, I would really NOT worry about getting actually defrauded. If you need to sign a new contract, you're safe doing so. I've had to resign new contracts due to random errors many times with customers. A dealer wont, and cant, try to get you multiple loans on the same car or anything crazy like that. If its at a small private 'mom and pop' store, Id be a little more careful, simply in regards to checking that all the numbers and math add up.
If you do resign a contract, they sometimes use a form that explains the reason for a new contract. Its nothing official looking.
Also, you mention the title. You will not actually receive the title. One of the two banks will. So you'll have a hard time knowing. However, good news is the bank will fight to make sure they get the title. If you redo your loan with your own bank, and it finally gets cashed and done, eventually THEY will start asking where their title is.
Calling the DMV will not do much because the paperwork process on their end takes forever, sometimes as long as 90-100 days. They wont know what has been mailed or sitting in a bin waiting to be opened. Especially with how messed up this deal is, it could easily take 90 days from the time it begins being fixed.
My advice is to decide if you want the car, which if the only problem being this loan mixup, Id say you want it and keep it. If thats the case, next step just call or visit the dealership and talk to the sales manager or general manager if hes available. DO NOT GET ANGRY and out of line, because if they dont like you, odds of getting help gets reduced. Legally they are probably fine to just leave everything as is, because the option contract was legal, and it would be hard to prove that yes you really gave them a 100% fully executable draft check. It isnt their job to 'help' get your second loan funded, and if there was one one small problem, they can stick with the original loan. So just ask for help, which it seems like you have done, since they are being nice and offering to take the car back.
I think you can get this problem taken care, as its not TOO big of a problem. It sucks, but within 6 months it WILL be taken care of, with only a few phone calls to check on your part I bet.
What I would worry about WAY more, to make sure its taken care of, is getting the WRONG loan, and ANY reference to a LATE payment, TAKEN OFF YOUR CREDIT. Thats whats important! And probably the only important thing in this whole thing. Im not an expert in that but calling the actual bank that said you missed a payment and checking, and double checking that they really mean it wont be there, should be the #1 priority.
#2952 of 3350 Re: Dealer made huge finance/contract error. Help! [abgcdm]
May 22, 2012 (1:02 am)
On a side note to my response above.. You said you didnt know until Ally called you regarding a late payment.
Regardless of this dealership mixup, how were you supposed to make the payment if you HAD knowingly gone with Ally from day1? Did they not send you a payment book, welcome packet, or notice prior?
#2953 of 3350 Re: Dealer made huge finance/contract error. Help! [abgcdm]
May 22, 2012 (5:05 am)
You simply need to return the car! As for Ally Bank, the dealer and you should be dealing with Ally Bank! If Ally never sent you a welcome letter or an account number it is up to Ally to prove that they sent you that material! Just void the deal and return the car, and then deal with Ally Bank! Or, you can keep the car and have the dealer deal with Ally Bank and the new bank!
Quite frankly, I would go and see a civil lawyer to find out what possible case you might have against the dealer!
As for not getting angry, I agree! You should be as nonchalant as you possibly can!
#2954 of 3350 Re: Dealer made huge finance/contract error. Help! [abgcdm]
May 22, 2012 (5:29 am)
I don't see how you can return the car. You signed the contract and its completely enforcable.
The only thing in your corner right now is the dealer not wanting an upset customer. As Rick said, be nice. They honestly don't HAVE to help you if they don't really want to.
How is the interest rate on the loan they did get you, though? If its just as good, I see no reason to go through this trouble.
If Ally is giving you a better rate, ask them if they will just refinance the loan that the dealership acquired for you. I know my credit union doesn't care if its a refinance or not... the rates are the same.
#2955 of 3350 Re: Dealer made huge finance/contract error. Help! [qbrozen]
May 22, 2012 (9:07 am)
I don't see how you can return the car
He said that the dealer was willing to take the car back! If the dealer is willing to accommodate him like that, he should definitely take them up on that. He now has a "late" payment issue with Ally Bank. He needs to contact Ally right away about that. If he did not know which bank he was being financed through at the dealership, that is fine - that happens all the time. But they must notify you within a reasonable time that a payment is due and where the payments must go.
So, someone blew it - either the dealership or Ally Bank. That is why I would talk with a civil lawyer - first to find out any recourse he has, and secondly, to protect himself from further issues. I'll bet an attorney would be willing to take this, assuming there is enough evidence that "due notice" was not provided by the dealership and/or the bank!
#2956 of 3350 sales tax w/trade-in (new jersey)
May 31, 2012 (10:44 am)
Hi, I just bought a camry se in new jersey and heard that I should have only paid sales tax on the difference between the car price and trade-in allowance (my trade-in did have a payoff on it though). The sales tax in my contract is for the full car price (7%). Should the tax have been calculated on $22,134.41 - $17,000 = $5,134.41?
Car Price $22,134.41
Sales Tax $1,549.41
Doc Fee $299.00
Title Fees $22.25
NJ Tire Fees $7.50
Loan Amount $18,945.57
#2957 of 3350 Re: sales tax w/trade-in (new jersey) [riz3]
May 31, 2012 (10:47 am)
To clarify, the trade-in allowance was $17,000 and the payoff on it was $14,634, so the net amount I got from it was $2,366. So should tax be calculated on
a) Car Price = $22,134.41
b) Car Price - allowance = $22,134.41 - $17,000 = $5,134.41
c) Car Price - net_trade_in = $22,134.41 - ($17,000 - $14,634) = $19,768.41
#2958 of 3350 Re: sales tax w/trade-in (new jersey) [riz3]
by Kirstie@Edmunds HOST
May 31, 2012 (11:07 am)
I'm not specifically familiar with NJ, so your best bet is to call your local DMV to be sure, but...
In the states I AM familiar with that let you pay sales tax on the difference only, the payoff amount is irrelevant. They just take the new purchase price, subtract whatever the trade-in allowance in is, and you pay tax on that difference. In your case that would be scenario B. The state doesn't care who the trade-in money goes to.