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Purchased a car

Discussion in 'Car Sales, Dealers, Repairs, Lemon Law' started by Melissa Johnson, Feb 22, 2021.

  1. Melissa Johnson

    Melissa Johnson Law Topic Starter New Member

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    My daughter went to buy a new vehicle because she had a small Honda Civic and she recently moved to Montana and with all the snow wanted something a little bigger. The loan on the civic was in both of our names and I was on it first . She was in a accident w couple of years ago and we’re finally settling it with my insurance company because the driver had none . She’s a young girl and should have never went in and bought a brand new car that she can’t afford. She traded the civic in and signed it over for them to pay off . My question is , since I’m on the loan for the civic , shouldn’t we both have to sign a paper for them to do a payoff? Also with her not knowing any better, she told them that she had money to put down . I feel as though they ripped her off . I know that she was upside down but they asked her to put $10,000.00 down on the CRV . She hasn’t even gotten the settlement check yet and they gave her the keys to the car without the money down and she walked away with a payment she thought she could afford. I was furious and she knew right after she left that she made a huge mistake. She took it back down there to talk to them and they said there’s nothing they can do . She has to keep the CRV and put $10,000 down whenever she gets it . I’ve never heard of anything like this . Also I didn’t give my permission for them to get a copy of her insurance card for the civic to cover the CRV until she can get her own insurance. I’m the policy holder and she’s just a driver . She really needs to take it back because she can’t afford it and I feel like they took advantage of a young girl who didn’t know any better and had no clue how the car buying business goes . So all of that is to ask if there’s anything we can do to get her car back now because they’re telling her no but she’ll never have the $10,000.00 to give them because the settlement wasn’t enough to pay for that . Thanks
     
  2. army judge

    army judge Super Moderator

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    How old is your daughter?

    Is your daughter of sound mind?

    What is the contracted price of the vehicle she purchased?

    I suggest you read the contract and/or purchase documents.

    You'll probably find a section discussing "contingent financing".

    If you don't, here's what I'm trying to illustrate.

    What will your daughter do WHEN her financing fails to be achieved?
    As you mentioned, she won't get her hands on $10,000, that alone will put the kibosh on any deal.

    One of the MANY car dealer tricks is called the Spot Delivery Scam.

    This is where the dealer arranges the financing, lets you take the car home, then calls you several days later informing you the financing fell through and you need to bring the car back.

    When you're back at the dealership, they'll ask you to sign a new loan at a higher interest rate and possibly a bigger down payment to qualify for the new terms.

    The consumer is confused because she/he assumed everything was fine.

    He/she had signed the purchase agreement and took the car home, so how could this be happening?

    What people fail to realize is the agreement was contingent on financing getting approved.

    In the meantime, the car buyer has been driving the car around and showing it off to friends and neighbors. They may have even traded their old car and the dealer has sold that car off the lot.

    So now the buyer is in a really tight spot.

    The buyer/victim has to sign the new terms or return the vehicle.

    There will also be some unexpected fees and usage costs, if the dealer agrees to take the car back.

    The dealer knew the mark would never be approved for the loan and that she/he is likely to sign the new terms to keep the car. It's easy, greedy profits for the dealer.

    This scam is pulled mostly on people with bad credit. Dealers know these consumers don't have many options so they take advantage of their tough situation.

    You might contact a local TV or newspaper investigative reporter, or consumer reporter to see if the media can assist you in getting your daughter untangled from this spider's web of trickery.

    Sometimes a phone call to the owner or general manager can result in a quick and cheaper return of the car and cut those credit chains that imprison the uninitiated.
     
  3. Zigner

    Zigner Well-Known Member

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    No.


    Irrelevant.
     
  4. Redemptionman

    Redemptionman Member

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    Some states have a 3 day cooling off period. However, Montana does not have this so unless the dealership goodwill allows you to return the vehicle it will be impossible to do so.
     
  5. adjusterjack

    adjusterjack Super Moderator

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    There's no question that she got screwed on the deal because car dealers are liars and thieves and that's what they do. Unfortunately, the do it legally.

    However, she's an adult and she signed a contract and is stuck with the consequences. Her Civic has probably been resold already so if she doesn't come up with the $10,000 the new lender or the dealer will repo the car and trash her credit. Then she won't have a car nor the ability to buy another new one.
     
  6. Melissa Johnson

    Melissa Johnson Law Topic Starter New Member

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    She’s 22 years old and she doesn’t have bad credit but it’s about an 650 with her trying to build credit . The finance company went through and said that the dealer put that she had already put $10,000.00 down even though they still haven’t gotten the money and they won’t return her car to her . I won’t sign the paper to pay her car off as it’s in both our names . My lawyer said not to sign it over so I’m not really sure what to do as of now .
     
  7. army judge

    army judge Super Moderator

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    If you trust your lawyer, heed her/his advice.

    Your inaction will likely force the dealer's hand.

    If your daughter can't come up with the $10K, I suspect the dealer will ask her to return the car.

    The deal will be unwound, but the dealer will demand tribute for "wear and tear" on the vehicle.

    As you won't be signing off on the title, sit back and allow things to come to a head.
     

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