Dealership hasn't cashed financing check

[Tony Georgiev]

Jurisdiction

Florida

Hi!

Hope someone can help! I am getting to the point:

Jan 18, 2020 I was approved for financing for a vehicle from a bank. A blank check was given to me with expiration date Feb 17, 2020. The next day, Jan 19, 2020, I bought a vehicle for $21600. Of that, $1,600 was paid with a credit card and the check was written for $20,000. The check was never cashed and today is Mar 6, 2020. Check is invalid.

Obviously it is the dealer's fault and I would expect them to solve the problem. At minimum I would require them to finance the purchase with the exact same terms as I had with the bank. They haven't contacted me at this point. What should I do in this case? Should I contact them? Should I wait? Could there be implications if I don't contact them? Can they request to return the car (I don't want to)? Do I need a lawyer?

 

[adjusterjack]

I think you should be talking to your bank first. Seems to me that you are already on its books as owing $20,000 and you should be making payments on it regardless of whether the check has been cashed or not. Your first payment on the loan should have been made on Feb17 or Feb 19. If you didn't make a payment you may be in default on the loan and lose the car to a bank repo.

Like I said, talk to the people at the bank and make sure you make your payments.

At some point the dealer will come looking for its money and you'll have to get another check from the bank.

 

[Zigner]

I think you should be talking to your bank first. Seems to me that you are already on its books as owing $20,000 and you should be making payments on it regardless of whether the check has been cashed or not. Your first payment on the loan should have been made on Feb17 or Feb 19. If you didn't make a payment you may be in default on the loan and lose the car to a bank repo.

Like I said, talk to the people at the bank and make sure you make your payments.

At some point the dealer will come looking for its money and you'll have to get another check from the bank.

I agree with your statement that the OP should speak with the bank. I disagree with your other conclusions.
The OP was handed a "blank check" and approved for a loan (I'm sure there was a maximum amount on the loan amount - probably $20,000). Since the check was never submitted to the bank for payment, there was no actual money loaned. Now, the OP will need to speak to the bank about continuing the terms under which the loan was initially approved.

 

[Tony Georgiev]

I agree with your statement that the OP should speak with the bank. I disagree with your other conclusions.
The OP was handed a "blank check" and approved for a loan (I'm sure there was a maximum amount on the loan amount - probably $20,000). Since the check was never submitted to the bank for payment, there was no actual money loaned. Now, the OP will need to speak to the bank about continuing the terms under which the loan was initially approved.

Yes, it was a "blank check" for amount up to $20,000, and this is what I used. Forgot to mention I spoke with the bank and they said check is no longer valid. They offered to apply again with them, but at this point this is no good for me, my credit rating is not the same and I wouldn't like the new terms on a possible new application.

 

[Tony Georgiev]

I think you should be talking to your bank first. Seems to me that you are already on its books as owing $20,000 and you should be making payments on it regardless of whether the check has been cashed or not. Your first payment on the loan should have been made on Feb17 or Feb 19. If you didn't make a payment you may be in default on the loan and lose the car to a bank repo.

Like I said, talk to the people at the bank and make sure you make your payments.

At some point the dealer will come looking for its money and you'll have to get another check from the bank.

Since the check was never cashed, no loan has been originated. At the bank they have an approved application for an auto loan, that's it. There is no loan number or anything.

 

[army judge]

Yes, it was a "blank check" for amount up to $20,000, and this is what I used. Forgot to mention I spoke with the bank and they said check is no longer valid. They offered to apply again with them, but at this point this is no good for me, my credit rating is not the same and I wouldn't like the new terms on a possible new application.

It is time for you to speak to one of the authority figures at the dealership.

I suspect that your FICO tanked shortly after you received the "check".

Did you solicit the bank in order to receive the "check", or did you simply receive the "check" unsolicited (as in mass mailing by the bank)?

My guess is that the "check" contained small print you overlooked or failed to read before initiating the transaction.

When you contact the dealership another issue will rear it's angry head.

You're going to owe some serious money to the dealer for "renting" the vehicle that you thought you had "purchased on credit".

 

[Tony Georgiev]

It is time for you to speak to one of the authority figures at the dealership.

I suspect that your FICO tanked shortly after you received the "check".

Did you solicit the bank in order to receive the "check", or did you simply receive the "check" unsolicited (as in mass mailing by the bank)?

My guess is that the "check" contained small print you overlooked or failed to read before initiating the transaction.

When you contact the dealership another issue will rear it's angry head.

You're going to owe some serious money to the dealer for "renting" the vehicle that you thought you had "purchased on credit".

Score went down because I took large balance transfer from a credit card for a home remodel (after the auto loan application).

I solicited the bank. Got into a branch for a different matter, they told me I was instantly approved for an auto loan and I took the offer.

Your guess for a fine print that I overlooked is wrong. The check was accompanied with instructions for the dealer (on the same page) from the bank. The dealer is a major car rental player, car sales division, so not some small independent one.

They did not cash the check and now it is expired. I have a car and no loan. Bank at this point is out of the game. Dealer has to fix this. Question is, should I talk to them again? I already stopped by and talked to them 5 days before check expired, they assured me it will get taken care of in the next 2-3 days. Should I talk to a lawyer?

 

[Zigner]

Score went down because I took large balance transfer from a credit card for a home remodel (after the auto loan application).

I solicited the bank. Got into a branch for a different matter, they told me I was instantly approved for an auto loan and I took the offer.

Your guess for a fine print that I overlooked is wrong. The check was accompanied with instructions for the dealer (on the same page) from the bank. The dealer is a major car rental player, car sales division, so not some small independent one.

They did not cash the check and now it is expired. I have a car and no loan. Bank at this point is out of the game. Dealer has to fix this. Question is, should I talk to them again? I already stopped by and talked to them 5 days before check expired, they assured me it will get taken care of in the next 2-3 days. Should I talk to a lawyer?

Actually, this is still your problem. If the check is no good, then you are going to have to find alternative financing. You may need to negotiate with the dealer, but you can't force them to offer the same terms.

 

[army judge]

Should I talk to a lawyer?

If I were in your seat, I'd visit the dealer and ask to speak with one of the higher level authority figures.

I can assure you that if the dealer has not yet discovered what the bank told you, that when the dealer does discover it, you'll see some very aggressive actions towards you on their part.

 

[Disabled Vet]

sounds like someone will be giving the car back to the dealership....
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