Dealer hasn't paid trade-in loan off

[Lexus404]

February 2 I went to purchase a car. My mother went with me as a co-signer. I took my old car to trade-in which I owed about $1800.00 on the loan. My car was worth about $5200.00.

We agreed on a deal for the new car. They gave me $2000 as a down payment and stated they will pay off the $1800. I accepted that offer. Even though my car was in good mechanical shape, the cosmetic issues were about $2000 by itself.

Well we waited and finally was called into the managers office. Once inside they stated they were able to put my name on the loan. They put the loan in my mothers name. Me and my mother spoke about it...she said it was fine. So she signed the deal. We just figured we would refinance in about 6 months. FYI...my credit at the time was 600 and hers was 720.

So after looking over the paper work. The car I traded-in which I solely owed besides the lien holder. The paperwork showed as if my mother owed the vehicle. Then two weeks after owning the vehicle the stereo amplifier went out. I called about the issue but no resolution.

It's been 20 days since the deal. They haven't paid off my trade-in loan yet. The has called numerous of times.

Reading this situation...what are my options legally?

 

[disagreeable]

Normally the best way to handle it to file a complaint with the states Atty. General. Evidently GA does not want to assist. Unless you have a warranty covering the amp your recourse is to fix it yourself.

http://consumer.georgia.gov/consume...er-to-pay-off-your-loan-can-be-risky-business

 

[army judge]

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You should discuss this with your mother.
I see several problems that could cause other issues.
You and your former lien holder were titled on the old car.
Mom is the only one on this loan.
Mom wasn't on the old car's title.
I see many problems with this deal.
I also see mom getting stuck with the NEW note.
Financing may not have been finalized, and they may ask you to return the "car you now possess".
You and mother should visit the dealership in person and seek clarification on the loan.
I'd forget about that lousy "amp", until you know financing has been resolved.

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[Lexus404]

Clarification on post. The financing isn't through the dealership. The financing is with Capital One. I've already made my first car payment yesterday.

I'm not sure if another deal could be worked out with Capital One. But I plan on refinancing the car in 3-6 months under my name.


My concern was what can I do if the dealership doesn't pay off the $1800.00 left on the car I traded in. Any legal recourse for that? Is there a time limit on when they need to pay it off?

 

[mightymoose]

They will pay the trade in. It just takes time. Make sure you make any pending payments until it is paid off. Any over payment will be reimbursed.
If this is a new car you bought you need to read your warranty paperwork and know what is covered and what is not.
If you bought a used car the stereo is not likely covered.

 

[disagreeable]

That is why you need to contact the state AG to see if they will send a nasty gram in response to your complaint. You must keep up payments on it or it will go into default. I would go in person to speak to the dealership manager first.