Cash for Clunkers Deal Gone Wrong

[WatkinsGarrett]

In August, my husband and I purchased a car through the Cash for Clunkers program. We chose a car and then signed all of the appropriate paperwork including a Dept. of Transportation application that had us acknowledge that to the best of our knowledge we met specific criteria. At the time that we signed the application, we thought that our insurance on the trade in covered a consecutive year, but later found out that there had been some lapses that covered a few days each because of slow pay.

We found this out after our financing agency sent the check to the dealer and the dealer sent the title to the financing agency. A month and a half after the deal was done, the dealership called with the following options- 1) give them more money, 2) turn the car in (and they send funds minus administrative fees and costs for mileage back to the financing agent), or 3) have the car repossessed.

We believe that the deal is done because the car was paid for and the title was sent? Does the dealership have the right to demand that we comply with the above mentioned options?

We tried to be fair in the situation by compensating the dealer with something that will help them make some profit, but the general manager keeps threatening us with repossession and other actions. Help!

 

[jharris352]

I doubt they can "repossess" the car. If they do they are likely in some real trouble. They made the deal, they got the payoff, and they are responsible for any mistakes. Now that having been said a court is going to make you pay any excess payoff that occurred because of your fault. Tell the Dealership manager, who doesn't have a lien on your car, that you will sue his rear if he continues to threaten you, much less do something so silly as repo a car he doesn't have a lien on.