Down Payment Used Car

[Taylor Stewart]

Jurisdiction

New Jersey

I purchased a used 2019 Kia Forte XYZ LLC in August 2020. The listing price was 13,900 and I put down 6,000. My APR is 7% and two years later I still owe $8,800. I sent in a letter demanding my down payment back and also cc'ed the state attorney general. The dealer refused and told me I was wasting my time. I know based on consumer law my rights were violated and I want my down payment back. My signature was also forged on the Retail Installment Contract. The physical copy I was given has a completely different signature than what was submitted to Ally Financial. Ally told me since no numbers are different on my copy that there is nothing they can do, however, the fact still remains that my signature was forged. Is there a way to get my down payment back as well as rescind the contract with Ally and obtain the title to my vehicle?

 

[justblue]

I purchased a used 2019 Kia Forte from Autotec Auto Sales LLC in August 2020. The listing price was 13,900 and I put down 6,000. My APR is 7% and two years later I still owe $8,800. I sent in a letter demanding my down payment back and also cc'ed the state attorney general. The dealer refused and told me I was wasting my time. I know based on consumer law my rights were violated and I want my down payment back. My signature was also forged on the Retail Installment Contract. The physical copy I was given has a completely different signature than what was submitted to Ally Financial. Ally told me since no numbers are different on my copy that there is nothing they can do, however, the fact still remains that my signature was forged. Is there a way to get my down payment back as well as rescind the contract with Ally and obtain the title to my vehicle?

You want to rescind a contract you entered into over 2 YEARS ago? Why? And why should they give you back your down payment????????

In what way were your rights violated?
What law was violated (post a link to the law)?

 

[Zigner]

You're not going to get out of the contract based on this.
Can you tell me what the term of the loan is?
Have you missed any payments?

 

[Tax Counsel]

I purchased a used 2019 Kia Forte XYZ LLC in August 2020. The listing price was 13,900 and I put down 6,000. My APR is 7% and two years later I still owe $8,800. I sent in a letter demanding my down payment back and also cc'ed the state attorney general. The dealer refused and told me I was wasting my time. I know based on consumer law my rights were violated and I want my down payment back. My signature was also forged on the Retail Installment Contract. The physical copy I was given has a completely different signature than what was submitted to Ally Financial. Ally told me since no numbers are different on my copy that there is nothing they can do, however, the fact still remains that my signature was forged. Is there a way to get my down payment back as well as rescind the contract with Ally and obtain the title to my vehicle?

What law, specifically, do you think was violated?

You won't get your downpayment back and be able to keep the vehicle. That would give you the car for substantially less than the $13,900 you agreed to pay, and that's not a fair outcome for the dealer.

I suggest you consult a consumer rights attorney and have that attorney review your contract to see if there is any problem with it.

 

[army judge]

Is there a way to get my down payment back as well as rescind the contract with Ally and obtain the title to my vehicle?

You can't unilaterally decide you want to rescind a contract.

Under What Circumstances Can a Contract Be Rescinded?
There must be certain circumstances for a court to find grounds for rescinding a contract.This means that a judge must make a decision that there is a very good reason to cancel the contract. Since a contract creates legal responsibilities, a court will not rescind a contract without a valid basis. You cannot just change your mind about the agreement and have a contract rescinded.

Contract rescission is most often available in certain specific circumstances. There are grounds for rescinding a contract in the following situations:

Mutual consent: Mutual consent means that both parties must show that they agree to have the contract cancelled. The best way to show consent is by using another written document. The written document should say clearly that both parties agree that the contract should be terminated.
Problems with contract formation: A contract must be created legally. Both parties must have consented to the contract. The consent must be legal under contract law. If there were illegal conditions when the contract was created, a court can rescind the contract. The most common issues with formation include:
Incapacity: This happens when one or both of the parties have a lack of capacity. Lack of capacity means that the party does not have the ability to enter or negotiate a contract under the law. Examples of lack of capacity include mental incompetency, certain illnesses, intoxication, or being a minor. Usually, a minor is someone who is underage. In many states, a minor is a person under 18 years of age.
Fraud: Fraud is a false representation about the subject of the contract or things related to the contract. Contract fraud can be many things. It usually happens when a party lies or uses deceit to get you to form the agreement.
Duress/Coercion/Undue Influence: You cannot force a party to sign a contract by threatening them. You also cannot use hostile or scary conditions to get them to agree to a contract. Duress, coercion and undue influence are all examples of when a party does not sign a contract of their own free will.
Mistake: A mistake is when the parties do not understand the terms in a contract. Often this is a mistake of fact about one of the terms. For example, the parties might be mistaken about whether a contract about the sale of cups means paper cups or plastic cups.
Anticipatory Repudiation: Anticipatory repudiation means that one party acts in a way that shows that they will not perform their legal obligations under the contract.
Consideration: Consideration is a requirement for forming a contract. In certain cases, consideration can fail, be inadequate, or is not legal.
Against the Public Interest: Sometimes a contract can be rescinded if it is against the public interest. This means that it would be bad for the general public. For example, a contract that requires a person be an indentured servant.

When Can You Rescind a Contract? | Rescission of Contract Law | LegalMatch

In reality, you've determined you made a less than satisfactory deal. The problem for you might be called buyer's remorse.

The time to have raised your many objections has long expired, if it ever existed.

As far as your signature being forged, that's a matter for law enforcement to address. The problem with that issue is you've paid on the note for two years, retained possession of the vehicle, kept it insured, and properly licensed. If you hadn't, Ally would have REPOED same.

The only legal way to obtain the title is to pay off the loan.

 

[Zigner]

Ok, let's do the math a little here using estimated and rounded numbers:

Vehicle cost: $13,900.00
Sales Tax: $920.00
Registration Fee: $60.00
Dealer Doc Fees: $300.00
Less Down Pymt: <$6,000.00)

Total Loan Amount: $9,180.00

At 7% interest:

60 month loan, your balance after 24 months would be $5,887.
66 month loan, your balance after 24 months would be $6,241.
72 month loan, your balance after 24 months would be $6,536.00.
84 month loan, your balance after 24 months would be $6,535.88.

I agree that a balance of $8,800 after 2 years would not be appropriate based on the numbers you gave. Now, pull out your contract and see what the numbers actually were.

 

[army judge]

I agree that a balance of $8,800 after 2 years would not be appropriate based on the numbers you gave.

It might be accurate IF someone isn't current on the note.

 

[Zigner]

It might be accurate IF someone isn't current on the note.

Another possibility (which you alluded to, perhaps inadvertently) is that the OP did not, in fact, maintain insurance, thus causing the lender to put a policy in place. Of course, if that's the case, then the insurance would cost MUCH more than if it were purchased by the OP.

 

[army judge]

Another possibility (which you alluded to, perhaps inadvertently) is that the OP did not, in fact, maintain insurance, thus causing the lender to put a policy in place. Of course, if that's the case, then the insurance would cost MUCH more than if it were purchased by the OP.

 

[zddoodah]

The listing price was 13,900 and I put down 6,000. My APR is 7% and two years later I still owe $8,800.

So...you borrowed $7,900 and, for two years, have been making timely monthly payments (you didn't say so, but I'm assuming), and you now owe $8,800. That's simply not possible, which means there must be relevant facts you haven't shared with us.

While you didn't tell us how long the term of your loan was, a five year term is standard. With a $7,900 loan at 7% for 5 years, your principal balance after two years would be just under $5,000 (obviously, I didn't factor in sales taxes and fees and simply assumed that $13,900 was the bottom line).

Why do you think that you "still owe $8,800"?

I sent in a letter demanding my down payment back

Sent a letter to whom? On what factual and legal bases do you think you're entitled to have your down payment returned?

I know based on consumer law my rights were violated

Which consumer law? What rights? Violated how and by whom?

Is there a way to get my down payment back as well as rescind the contract with Ally and obtain the title to my vehicle?

You want your down payment back, to rescind the contract and to keep the car? You think that whatever happened entitles you to a free $14,000 car? You're kidding, right?

Without a clear articulation of what legal wrong you think occurred, it's utterly impossible to determine what you might be entitled to.

 

[Zigner]

So...you borrowed $7,900

This does not change the overall meaning or validity of your post, but the OP's loan was a bit more than that once you factor in taxes and fees that are based on the full value of the vehicle before deducting the down payment.

 

[adjusterjack]

I purchased a used 2019 Kia Forte XYZ LLC in August 2020. The listing price was 13,900 and I put down 6,000. My APR is 7% and two years later I still owe $8,800.

Feel free to upload a copy of your finance contract so we can see what happened. Redact any identifying information.

Speculation without documentation is futile.

 

[Taylor Stewart]

It might be accurate IF someone isn't current on the note.

Well I am so that's absolutely not an issue. The issue is the fact that that 6,000 was never taken off the initial 13,995 price of the car. They essentially added extra fees to account for my down payment and it got buried.

 

[justblue]

Well I am so that's absolutely not an issue. The issue is the fact that that 6,000 was never taken off the initial 13,995 price of the car. They essentially added extra fees to account for my down payment and it got buried.

What extra fees? Provide the details and perhaps there is recourse.

 

[adjusterjack]

Well I am so that's absolutely not an issue. The issue is the fact that that 6,000 was never taken off the initial 13,995 price of the car. They essentially added extra fees to account for my down payment and it got buried.

One more time.

Upload a copy of your finance contract and your purchase contract so we can see what happened. Redact any identifying information.

Speculation without documentation is futile.

 

[zddoodah]

The issue is the fact that that 6,000 was never taken off the initial 13,995 price of the car. They essentially added extra fees to account for my down payment and it got buried.

That's something that ought to be reported to the DMV and about which you ought to consult with a local attorney.

 

[army judge]

Well I am so that's absolutely not an issue. The issue is the fact that that 6,000 was never taken off the initial 13,995 price of the car. They essentially added extra fees to account for my down payment and it got buried.

Hmmm, you feigned IGNORANCE, all the while KNOWING or later ALLEGING, others are at fault.

Why did you leave out the answer to your question?

Better yet, why pose a question to which you knew the answer?

If your ALLEGATION can be proven, see an attorney.

There could be a nice puddle of loot coming your way.

The sooner you begin, the sooner you win!!!