Bad Auto Dealer Help!

[crybrynt1975]

I signed a contract on May 31, 2008 for a new Dodge Ram; my first payment was due 7/15/08. By July 1st I hadn't received any information about who secured my financing, so I contacted the dealer and was told American First credit union. I called the credit union and they told me I didn't have a loan with them, I than starting to receive collection calls for the truck I traded in saying I was behind 2 months on my payments. I called lhm dodge about this and they said oops we forgot to send the payoff check. A couple of days later I called my former loan holder and they told me the trade was paid off. I went back to the dealership on 7/14 to see if I could get to the bottom of the issue, I spoke with the finance director Mr. Mike Richards and he stated he just finished my paperwork……… my contract stated 10.99% for 84 months at a payment of 791/mo. The paperwork he pulled out was at a payment of 898/mo, I informed him that wasn't what we signed upon and I didn't receive a letter within 10 day of May 31 stating the dealer couldn't find me financing, so I wanted to have the offer rescinded. He stated to give him a few weeks and he would find me financing at the rates we signed upon and when he did he would change the contract so my payment wouldn't be due for another 45 days. On Aug 18 I get a call from the dealership my paperwork is ready to be signed, so I headed down there. They informed me Mr Richards no longer worked there and they weren't responsible for his actions the paperwork they pulled out was the one I refused earlier for 898/mo. They told me if I didn't sign the paperwork I would be charged with milage and because my trade in allowance was 12,900 and my amount owed was 10,000 on my trade I would end up with no vehicle by time they took their 10,000 back and added up my charges. They had me at this point I have a family of 5 included a infant and I could be without a vehicle. They backdated the paperwork to May 31 and I signed it, with 1350.00 down. Finally thought the ordeal was over!!! On Sept 7 I again received another call they cant find financing because from May 31 to Sept my credit score dropped. The dealership again didn't sent me a 10 day letter of not being able to provide financing. I was told to try and find a co-signer or my own financing, which I couldn't do I want to return the vehicle and receive my down payment and trade in allowance back. Please help

 

[lwpat]

This sounds like a typical "yo-yo" sale. Many states have specific laws banning this type of action from a dealership. Do a Google search to see if there is anything in your state. You will need the assistance of an attorney if you feel that is what happened.

http://money.cnn.com/2004/01/14/pf/autos/yoyo/

 

[jalancast]

I responded to crybrynt1975's post in another thread. This is in response to the yo-yo sale comment and link.

It's funny to me that people assume a "yo-yo" sale by a dealership is malicious or intentional. First of all, the consumer signed paperwork that indicated he was accepting a spot delivery. What is the consumer's responsibility for taking delivery of a vehicle they knowingly may not be able to keep? While it's true that most consumers don't actually realize this fact when they take delivery, most dealerships have a "spot delivery" disclosure form that the consumer is supposed to read.

Secondly, "yo-yo" sales for profit rarely involve brand new vehicles. When the yo-yo breaks and you have to get your car back, you often find that it has damage and a bunch of miles, both of which tremendously effect the value of a new car. If this were a used vehicle there would be a chance that this was intentional, but even then I would argue it isn't. The deal would have been done 80 days ago if this was nothing more than a simple ploy.

Don't get me wrong - the dealership we're talking about is incredibly poorly managed. From my perspective as an experienced dealership manager, it's amazing that this series of events have transpired. But I would respectfully submit that we should "never attribute to malice that which can most easily be explained by stupidity" (or something like that - my father used to say it all the time).

The dealership in this instance is much more likely stupid than they are conniving "yo-yo" salespeople.

 

[lwpat]

I tend to disagree. The critical part for me is where they say they are not responsible for the actions of an employee. That is a lie and intentional deception on their part which leads me to believe this is a yo-yo.

You have to remember on a forum we are only getting one side which is why I suggested the research and contacting an attorney. The attorney can review the parperwork and decide whether there is a claim of deceptive trade practices.

 

[jalancast]

Good point - the "we're not responsible for that guy" line doesn't fly.

As you say, we only know half the story.

I will say that generally speaking yo-yo sales wouldn't involve new cars. The risk of damage to the asset, combined with the fact that most consumers view new cars with more than a few hundred miles as "used," it wouldn't make much sense to try this with a new truck.

Still, Dodge dealers are in a bind. Anything is certainly possible.

 

[lwpat]

The leading case in our state involves a new car.