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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Does this sound fishy....car deal....
You purchase a car, you get the loan. They asked for a lower loan then they originally said the price would be. THEN...they call and tell you that the only way you can keep the car is to give them the remainder in CASH as the lender will not add it to the loan.
Is this a scam for the dealership to make money?
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Posted 4/11/12 3:56 PM  |
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Long Island Weddings
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Re: Does this sound fishy....car deal....
Yes
ETA: That makes no sense at all. You need a purchase agreement to buy a car. The price would never be mixed up because the lender goes off the contract.
Message edited 4/11/2012 4:01:42 PM.
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| Posted 4/11/12 3:59 PM |
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Re: Does this sound fishy....car deal....
Do you have the car? Have you signed for loan yet?
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| Posted 4/11/12 4:02 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Does this sound fishy....car deal....
Posted by greenybeans
Do you have the car? Have you signed for loan yet?
Yes, the person got the car and everything was signed for.
She got a call saying that the amount loaned was incorrect (less than what was originally negotiated) even after she signed paperwork and that they now need more money because the lender will not add any more money onto the monthly payments.
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| Posted 4/11/12 4:08 PM |
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Re: Does this sound fishy....car deal....
Posted by hazeleyes33
Posted by greenybeans
Do you have the car? Have you signed for loan yet?
Yes, the person got the car and everything was signed for.
She got a call saying that the amount loaned was incorrect (less than what was originally negotiated) even after she signed paperwork and that they now need more money because the lender will not add any more money onto the monthly payments.
Wow, I have never heard of that. It sounds like the dealer is looking for more than the car is worth. I would call the lender and make sure everything is good with the loan. If so, then I would contact the BBB about the dealer. Tell the person NOT to give any more money for the car.
ETA: When you buy a car you have a purchase agreement signed by the dealer and the buyer with the price of the car. You also have an original security agreement, a long yellow piece of paper with all your loan info on it. Compare them, and call the lending bank..
Message edited 4/11/2012 4:20:07 PM.
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| Posted 4/11/12 4:15 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Does this sound fishy....car deal....
Posted by greenybeans
Posted by hazeleyes33
Posted by greenybeans
Do you have the car? Have you signed for loan yet?
Yes, the person got the car and everything was signed for.
She got a call saying that the amount loaned was incorrect (less than what was originally negotiated) even after she signed paperwork and that they now need more money because the lender will not add any more money onto the monthly payments.
Wow, I have never heard of that. It sounds like the dealer is looking for more than the car is worth. I would call the lender and make sure everything is good with the loan. If so, then I would contact the BBB about the dealer. Tell the person NOT to give any more money for the car.
ETA: When you buy a car you have a purchase agreement signed by the dealer and the buyer with the price of the car. You also have an original security agreement, a long yellow piece of paper with all your loan info on it. Compare them, and call the lending bank..
Yep. All paperwork was fine when signed. The only discrepancy was the original paperwork. (which was not a signed paperwork just to show how much the loan would be).
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| Posted 4/11/12 4:22 PM |
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Xelindrya
Mommy's little YouTube Star!
Member since 8/05 14470 total posts
Name:
Veronica
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Re: Does this sound fishy....car deal....
Fishy and then some.
If all the paper work says the lower number but they WANT a higher number, sorry charlie, you agreed to the lower number.
Lets say she got a car and it says its worth 10K all and all. She signed EVERYTHING for 8k. Well its a contract she just got herself a car for 8K. That's what the bank approved her for, that's what they agreed to, that's what she bought. She's golden. Tell them to go fly a kite.
If she signed everything for 10k but only asked for financing for 8k because she was told to do so or for whatever reasons. Well then she's on the hook for the other 2k. Not sure why you would knowingly borrow less than the value and not think you would owe the difference.
I nearly bought a used car which I could not get the full value from the bank. But I knew the difference I would have to make up.
Based on what you said its either A) they messed up their paperwork but she fully financed the contracted amount, dealership is out of luck. or B) she foolishly signed off on an amount more than she financed thinking they'd fix the paperwork later, then she owes that money, but yeah they are sleazy.
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| Posted 4/11/12 4:23 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Does this sound fishy....car deal....
Posted by Xelindrya
Fishy and then some.
If all the paper work says the lower number but they WANT a higher number, sorry charlie, you agreed to the lower number.
Lets say she got a car and it says its worth 10K all and all. She signed EVERYTHING for 8k. Well its a contract she just got herself a car for 8K. That's what the bank approved her for, that's what they agreed to, that's what she bought. She's golden. Tell them to go fly a kite.
If she signed everything for 10k but only asked for financing for 8k because she was told to do so or for whatever reasons. Well then she's on the hook for the other 2k. Not sure why you would knowingly borrow less than the value and not think you would owe the difference.
I nearly bought a used car which I could not get the full value from the bank. But I knew the difference I would have to make up.
Based on what you said its either A) they messed up their paperwork but she fully financed the contracted amount, dealership is out of luck. or B) she foolishly signed off on an amount more than she financed thinking they'd fix the paperwork later, then she owes that money, but yeah they are sleazy.
She didn't compare the paperwork to what the original price said but she was told this payment a few times before and after signing the paperwork.
Now they say the amount for the loan was too low and to keep the car she will need to pay more money to THEM as the lender will not increase the loan.
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| Posted 4/11/12 4:29 PM |
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Xelindrya
Mommy's little YouTube Star!
Member since 8/05 14470 total posts
Name:
Veronica
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Re: Does this sound fishy....car deal....
Posted by hazeleyes33
She didn't compare the paperwork to what the original price said but she was told this payment a few times before and after signing the paperwork.
Now they say the amount for the loan was too low and to keep the car she will need to pay more money to THEM as the lender will not increase the loan.
Yeah but who cares what the original price was (assuming it was the higher number?) Higher or lower.... what she agreed to buy the car for (and sign a contract for) is the issue. Unless I'm seeing it wrong. If she signs everything for a car to be bought for $1000 and its really a $10000 car. Well hey that's their fault for not fixing their end of the paperwork. If they push it then I'd unravel the whole thing and tell them to shove it.
Look up Truth in Lending
They need to be CLEAR on what's financed.
Generally a bank will require the contract to finance so i can't see how they'd get it wrong.
Bottom line besides all this is the sad realization is to read read read before you sign. I ask dumb questions just to stay awake and even complain about stupid charges I KNOW I have to pay because darn it I should have a chance to complain! LOL
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| Posted 4/11/12 4:41 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Does this sound fishy....car deal....
Posted by Xelindrya
Posted by hazeleyes33
She didn't compare the paperwork to what the original price said but she was told this payment a few times before and after signing the paperwork.
Now they say the amount for the loan was too low and to keep the car she will need to pay more money to THEM as the lender will not increase the loan.
Yeah but who cares what the original price was (assuming it was the higher number?) Higher or lower.... what she agreed to buy the car for (and sign a contract for) is the issue. Unless I'm seeing it wrong. If she signs everything for a car to be bought for $1000 and its really a $10000 car. Well hey that's their fault for not fixing their end of the paperwork. If they push it then I'd unravel the whole thing and tell them to shove it.
Look up Truth in Lending
They need to be CLEAR on what's financed.
Generally a bank will require the contract to finance so i can't see how they'd get it wrong.
Bottom line besides all this is the sad realization is to read read read before you sign. I ask dumb questions just to stay awake and even complain about stupid charges I KNOW I have to pay because darn it I should have a chance to complain! LOL
I agree, she should have seen that discrepancy but they also should have seen it before having her sign the paperwork. It was not a rushed deal either as it took a few days.
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| Posted 4/11/12 4:46 PM |
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alli3131
Peanut is here!!!!!!
Member since 5/09 18388 total posts
Name:
Allison
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Re: Does this sound fishy....car deal....
S/he is on the hook for what the papers s/he signed.
That signed agreement is the binding document.
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| Posted 4/11/12 4:48 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Does this sound fishy....car deal....
Posted by alli3131
S/he is on the hook for what the papers s/he signed.
That signed agreement is the binding document.
I agree but the dealer wants more money as THEY made a mistake and won't back down.
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| Posted 4/11/12 4:54 PM |
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Xelindrya
Mommy's little YouTube Star!
Member since 8/05 14470 total posts
Name:
Veronica
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Re: Does this sound fishy....car deal....
Posted by alli3131
S/he is on the hook for what the papers s/he signed.
That signed agreement is the binding document.
exactly.
No matter which way it flies She owes what she signed for. End of story.
You can only hope she got financing for what she signed for.
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| Posted 4/11/12 4:56 PM |
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Xelindrya
Mommy's little YouTube Star!
Member since 8/05 14470 total posts
Name:
Veronica
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Re: Does this sound fishy....car deal....
Posted by hazeleyes33
Posted by alli3131
S/he is on the hook for what the papers s/he signed.
That signed agreement is the binding document.
I agree but the dealer wants more money as THEY made a mistake and won't back down.
Pfft.. good luck to them!
What can they do? They undersold a car at a loss. The bank how has the lien, not them. No way I'd even entertain that! Higher value would also mean higher taxes etc. NO WAY, Jose!
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| Posted 4/11/12 4:57 PM |
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Re: Does this sound fishy....car deal....
Posted by hazeleyes33
Posted by alli3131
S/he is on the hook for what the papers s/he signed.
That signed agreement is the binding document.
I agree but the dealer wants more money as THEY made a mistake and won't back down.
Was it an error or are they going back on the price?
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| Posted 4/11/12 6:56 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Does this sound fishy....car deal....
Posted by greenybeans
Posted by hazeleyes33
Posted by alli3131
S/he is on the hook for what the papers s/he signed.
That signed agreement is the binding document.
I agree but the dealer wants more money as THEY made a mistake and won't back down.
Was it an error or are they going back on the price?
Their error. They forgot to put the amount owed on her trade-in, in the loan and now they wanted her to pay them the extra amount.
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| Posted 4/12/12 9:13 AM |
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billswife
LIF Infant
Member since 1/08 216 total posts
Name:
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Re: Does this sound fishy....car deal....
There is an article about this on the today show website today. They are calling it a yo-yo scam.
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| Posted 4/12/12 9:23 AM |
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Re: Does this sound fishy....car deal....
Posted by hazeleyes33
Posted by greenybeans
Posted by hazeleyes33
Their error. They forgot to put the amount owed on her trade-in, in the loan and now they wanted her to pay them the extra amount.
They probably did that on purpose. The loan would be upside down. A bank usually won't give out a loan for more than the NADA value on the new car, so the amount owed on trade in wouldn't be allowed in the loan. KWIM? She could not have added that amount on to the loan and bought the new car for what it was worth.
So they probably "made a mistake" and now they expect your friend to cover the difference. However, since it's paying off an existing lien your friend may have a problem. Was the previous loan paid off by the dealer? If so, it's not her problem. If not, she now has 2 car payments. So she has to call both banks and figure it out.
That's what it sounds like to me from what you're posting. I obviously could be wrong. Lol.
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| Posted 4/12/12 9:44 AM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Does this sound fishy....car deal....
Posted by greenybeans
Posted by hazeleyes33
Posted by greenybeans
Posted by hazeleyes33
Their error. They forgot to put the amount owed on her trade-in, in the loan and now they wanted her to pay them the extra amount.
They probably did that on purpose. The loan would be upside down. A bank usually won't give out a loan for more than the NADA value on the new car, so the amount owed on trade in wouldn't be allowed in the loan. KWIM? She could not have added that amount on to the loan and bought the new car for what it was worth.
So they probably "made a mistake" and now they expect your friend to cover the difference. However, since it's paying off an existing lien your friend may have a problem. Was the previous loan paid off by the dealer? If so, it's not her problem. If not, she now has 2 car payments. So she has to call both banks and figure it out.
That's what it sounds like to me from what you're posting. I obviously could be wrong. Lol.
Yep, this is what it sounds like. This dealership was going to pay off the loan BUT put the extra money into this existing loan. BUT...when they got the loan for her it was LESS that amount and now they want this in money now (cash, check, credit card) if she wants the car.
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| Posted 4/12/12 9:47 AM |
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Re: Does this sound fishy....car deal....
Posted by hazeleyes33
Yep, this is what it sounds like. This dealership was going to pay off the loan BUT put the extra money into this existing loan. BUT...when they got the loan for her it was LESS that amount and now they want this in money now (cash, check, credit card) if she wants the car.
Hmmm... Either way, honest error or not, she has to take care of this. She can't just ignore their calls. She needs to contact the bank (directly) that did the loan, they should be able to help her. (bring the paperwork)
It sounds very shady but the bank will be able to help her. The dealer can take her to court, etc... No good will come out of this if she actually owes them this money.
HTH.
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| Posted 4/12/12 10:19 AM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Does this sound fishy....car deal....
Posted by greenybeans
Posted by hazeleyes33
Yep, this is what it sounds like. This dealership was going to pay off the loan BUT put the extra money into this existing loan. BUT...when they got the loan for her it was LESS that amount and now they want this in money now (cash, check, credit card) if she wants the car.
Hmmm... Either way, honest error or not, she has to take care of this. She can't just ignore their calls. She needs to contact the bank (directly) that did the loan, they should be able to help her. (bring the paperwork)
It sounds very shady but the bank will be able to help her. The dealer can take her to court, etc... No good will come out of this if she actually owes them this money.
HTH.
She has taken care of it and had to take the old car back as they would not help her out and only wanted more money to keep the new car.
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| Posted 4/12/12 10:21 AM |
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mrsboss
my little love
Member since 12/09 5054 total posts
Name:
Me
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Re: Does this sound fishy....car deal....
This is why Errors&Omissions insurance policies are available to banks, dealers etc. The dealer can submit the errors claim with their insurance carrier.
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| Posted 4/12/12 10:23 AM |
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Xelindrya
Mommy's little YouTube Star!
Member since 8/05 14470 total posts
Name:
Veronica
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Re: Does this sound fishy....car deal....
Posted by hazeleyes33
Posted by greenybeans
Posted by hazeleyes33
Posted by greenybeans
Posted by hazeleyes33
Their error. They forgot to put the amount owed on her trade-in, in the loan and now they wanted her to pay them the extra amount.
They probably did that on purpose. The loan would be upside down. A bank usually won't give out a loan for more than the NADA value on the new car, so the amount owed on trade in wouldn't be allowed in the loan. KWIM? She could not have added that amount on to the loan and bought the new car for what it was worth.
So they probably "made a mistake" and now they expect your friend to cover the difference. However, since it's paying off an existing lien your friend may have a problem. Was the previous loan paid off by the dealer? If so, it's not her problem. If not, she now has 2 car payments. So she has to call both banks and figure it out.
That's what it sounds like to me from what you're posting. I obviously could be wrong. Lol.
Yep, this is what it sounds like. This dealership was going to pay off the loan BUT put the extra money into this existing loan. BUT...when they got the loan for her it was LESS that amount and now they want this in money now (cash, check, credit card) if she wants the car.
EW didnt realize there was another lien too. Yeah thats a problem indeed. I agree with PP, she'll have to deal with this.
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| Posted 4/12/12 11:08 AM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Does this sound fishy....car deal....
Posted by Xelindrya
Posted by hazeleyes33
Posted by greenybeans
Posted by hazeleyes33
Posted by greenybeans
Posted by hazeleyes33
Their error. They forgot to put the amount owed on her trade-in, in the loan and now they wanted her to pay them the extra amount.
They probably did that on purpose. The loan would be upside down. A bank usually won't give out a loan for more than the NADA value on the new car, so the amount owed on trade in wouldn't be allowed in the loan. KWIM? She could not have added that amount on to the loan and bought the new car for what it was worth.
So they probably "made a mistake" and now they expect your friend to cover the difference. However, since it's paying off an existing lien your friend may have a problem. Was the previous loan paid off by the dealer? If so, it's not her problem. If not, she now has 2 car payments. So she has to call both banks and figure it out.
That's what it sounds like to me from what you're posting. I obviously could be wrong. Lol.
Yep, this is what it sounds like. This dealership was going to pay off the loan BUT put the extra money into this existing loan. BUT...when they got the loan for her it was LESS that amount and now they want this in money now (cash, check, credit card) if she wants the car.
EW didnt realize there was another lien too. Yeah thats a problem indeed. I agree with PP, she'll have to deal with this.
Yep she has. Unfortunately she had to take the old car back and drop the whole deal because of their mess up :(
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| Posted 4/12/12 11:20 AM |
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nrthshgrl
It goes fast. Pay attention.
Member since 7/05 57538 total posts
Name:
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Re: Does this sound fishy....car deal....
Posted by mrsboss
This is why Errors&Omissions insurance policies are available to banks, dealers etc. The dealer can submit the errors claim with their insurance carrier.
This.
Not her problem if the title paperwork she has indicates a lower amount
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| Posted 4/12/12 11:26 AM |
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