|
|
Post by kellybelly77 on May 28, 2015 19:56:51 GMT
6/1/15 Update So last Thursday my sis called the Attorney Generals office and they said it does seem fishy and to get together all the documents to file a complaint and they would look into it since they have had similar complaints from the same dealership in the last few months.
Then on Friday she went into the dealership and spoke with her finance persons boss. Her finance gal who made the mistake called her Thursday morning with the bad news from the airport, or so she says. The finance boss knew some the situation and was not accommodating at all. He basically just told them that they have to re do the papers and that's that. So my sis asked to speak to his boss, who is more over the whole dealership I guess. He was a little standoffish at first. She showed him all the documents she prepared for the AG's office and said that if they don't fix this mistake without putting it all on her that she was giving back the new car and then marching right down to the AG's office to file the complaint. My sister said he was immediately scared!
So he made a few phone calls to other folks and, long story short, the dealership ended up eating the cost of the mistake. Since they had to draw up new loan paperwork anyway they checked a different credit union and the rate was lower than what she had signed for. It went from 2.99% to 2.49% so the overall payment dropped another $14 a month!
She is happy that they made it right! She does not believe that it was a mistake though. She said they are being vague as to what exactly happened other than the finance gal used the wrong amounts and that they were vague and not accommodating until she produced the papers she intended to take to the AG's office. After that their tune changed. Maybe they were really just scared of the complaint, who knows. But in the end everything was fixed to her favor!
So my sis bought a new car yesterday. She likes to trade in every couple years and she has had her current car for only 18 mo. She knew that she would probably take a loss since she hasn't had it very long. She traded it in at the dealer and took her new car home. Then today they called her and said they made a mistake in applying the trade in money or something and so part of the loss wasn't figured in. I'm not exactly sure what they screwed up on since this was via text message and she was pissed...
Anyway, the dealership told her that due to this mistake they had to redo her paperwork and loan with the bank and the payment actually comes out to about $100 more per month than they originally figured. And that they need her to come back in and re sign the loan documents. She is pretty pissed and is probably just going to take her old car back and cancel the agreement since she can do that within like 3 days.
But I just kind of mentioned (thinking out loud kinda thing..) that I bet car dealerships do this on purpose so that you see the numbers you want to see, get all excited about the car and then want to continue with the sale. Even in her case she said that if they had told her this new payment amount up front she wouldn't have purchased. I wasn't accusing the dealership of this just kind of wondering. She then starts talking to a friend who works at a bank and mentions my theory and he told her that this happens a lot actually. In some cases they suspect that it is dealerships giving people the numbers they want to see and then discovering their "mistake" and the customer is left on the hook for the difference because the dealership won't reduce their sale price any to compensate for the difference. He didn't really have any advice for her other than they suspect that it happens.
Now, I think this particular dealership she went to is shady as hell and would never do business there based on horror stories I have heard from other folks. But with what her banker friend said I just wondered if this is common. Her hubby wanted to protest and take a stand that the dealership needed to eat the cost because it was their mistake but she only has 3 days to return the car and get her old car back.
PS- I am not a white collar detective, nor do I play one on TV, I was just being super cynical when I first brought it up!  |
|
|
|
Post by freecharlie on May 28, 2015 20:03:00 GMT
I would think that the dealership was being screwy yesterday. I would be pissed. I would call a lawyer and see if they are allowed to change the terms of the agreement after the signing is done (I assume they have the three days as well). I would not sign any paperwork to increase the loan. I would get my car back and have them have something written and signed that voids the current contract. I would leave them feedback.
Or if I could get one to go with me, I'd call and ask what time they wanted my lawyer and I to come meet with them.
|
|
caangel
Drama Llama
Posts: 5,437 
Location: So Cal
|
Post by caangel on May 28, 2015 20:03:54 GMT
No idea but if she is getting a new car that often why doesn't she lease?
|
|
|
|
Post by kellybelly77 on May 28, 2015 20:11:59 GMT
No idea but if she is getting a new car that often why doesn't she lease? Who knows. Probably because she has 2 messy kids and she does drive a lot. In the 9 years I have had my car I think she has been through 4 or 5 cars. |
|
|
|
Post by anxiousmom on May 28, 2015 20:13:12 GMT
This exact scenario happened to me. I can't remember the details as to why it happened, but the dealership (which was supposedly an honest one) called me three days later to return to sign new paperwork at an increased interest rate and monthly payment.
I told them I wanted my old car back. They told me it was too late. There was ugliness all around. And I never did sign the paperwork.
It does make me wonder if they do this to those they think will be vulnerable to the tactic.
|
|
|
|
Post by LavenderLayoutLady on May 28, 2015 20:17:48 GMT
Tell her not to re-sign!
If the dealership made a mistake, it's on them. The contract is binding, even if the error is not in their favor.
|
|
|
|
Post by leannec on May 28, 2015 20:18:24 GMT
No idea but if she is getting a new car that often why doesn't she lease? She is the perfect customer for a lease ... unless she is driving an extreme number of miles per year it would be a way more economical situation for her to get a new car every couple of years ... In the present situation, I would think that a contract is a contract and that she should tell them to pound sand  |
|
Deleted
Posts: 0
Apr 25, 2024 12:15:10 GMT
|
Post by Deleted on May 28, 2015 20:18:46 GMT
I am not going to jump to convict the dealer. It's quite possible they really did simply make a mistake. I've never heard of that happening.
With that said, I'd certainly not re-sign any paperwork or agree to terms that she didn't originally agree to, mistake or not. I'd get my old car back and start new elsewhere.
The dealership WILL take a hit on this because they will NOT be able to sell that vehicle as a new car.
I just got a new car in April and the dealer and finance guy told us that there is a time period that they reserve the right to demand the vehicle back if there is any kind of fluke or issue with financing. (he said he wasn't worried about us by looking at our credit scores...but he went on to tell stories of people coming in the day before they file bankruptcy, or the weekend before they know their car is going to be re-possessed...people do stupid things all the time to try and cheat dealerships or get a leg up or get something for nothing)
|
|
|
|
Post by littlemama on May 28, 2015 20:22:56 GMT
She has a signed contract, I really don't think the dealership has any recourse, but I am not an attorney, nor do I play one on tv.  |
|
|
|
Post by kellybelly77 on May 28, 2015 20:25:01 GMT
Tell her not to re-sign! If the dealership made a mistake, it's on them. The contract is binding, even if the error is not in their favor. She isn't going to re sign any papers. She wants to get her old car back and move on. Her hubby though wanted to force their hand and make them eat the difference in the amount. But if they can also cancel the current contract with a 3 day window, it's possible the dealership will be the ones to pull the contract and demand the car back if she doesn't re sign.
I guess we will find out in 2 days!
|
|
|
|
Post by kellybelly77 on May 28, 2015 20:26:09 GMT
I would think that the dealership was being screwy yesterday. I would be pissed. I would call a lawyer and see if they are allowed to change the terms of the agreement after the signing is done (I assume they have the three days as well). I would not sign any paperwork to increase the loan. I would get my car back and have them have something written and signed that voids the current contract. I would leave them feedback. Or if I could get one to go with me, I'd call and ask what time they wanted my lawyer and I to come meet with them. I happen to know the Director of the Consumer Assistance division at our State Attorney Generals office so I told her to call him directly and ask what her options are. |
|
akathy
What's For Dinner?
Still peaing from Podunk!
Posts: 4,546
Location: North Dakota
Jun 25, 2014 22:56:55 GMT
|
Post by akathy on May 28, 2015 20:26:36 GMT
Tell her not to re-sign! If the dealership made a mistake, it's on them. The contract is binding, even if the error is not in their favor.  |
|
|
|
Post by Patter on May 28, 2015 20:27:05 GMT
I have never heard of this happening, and I love to buy cars. Just bought another one in March. Anyway, I feel as everyone else--she has a signed contract. They need to eat the cost. I too do not think they have any recourse.
|
|
|
|
Post by Spongemom Scrappants on May 28, 2015 20:27:10 GMT
I don't know that I've ever heard of that particular scenario happening, but you need to keep us updated. I really want to know how this one comes out!
|
|
|
|
Post by eebud on May 28, 2015 20:28:46 GMT
So my sis bought a new car yesterday. She likes to trade in every couple years and she has had her current car for only 18 mo. She knew that she would probably take a loss since she hasn't had it very long. She traded it in at the dealer and took her new car home. Then today they called her and said they made a mistake in applying the trade in money or something and so part of the loss wasn't figured in. I'm not exactly sure what they screwed up on since this was via text message and she was pissed...
Anyway, the dealership told her that due to this mistake they had to redo her paperwork and loan with the bank and the payment actually comes out to about $100 more per month than they originally figured. And that they need her to come back in and re sign the loan documents. She is pretty pissed and is probably just going to take her old car back and cancel the agreement since she can do that within like 3 days.
But I just kind of mentioned (thinking out loud kinda thing..) that I bet car dealerships do this on purpose so that you see the numbers you want to see, get all excited about the car and then want to continue with the sale. Even in her case she said that if they had told her this new payment amount up front she wouldn't have purchased. I wasn't accusing the dealership of this just kind of wondering. She then starts talking to a friend who works at a bank and mentions my theory and he told her that this happens a lot actually. In some cases they suspect that it is dealerships giving people the numbers they want to see and then discovering their "mistake" and the customer is left on the hook for the difference because the dealership won't reduce their sale price any to compensate for the difference. He didn't really have any advice for her other than they suspect that it happens.
Now, I think this particular dealership she went to is shady as hell and would never do business there based on horror stories I have heard from other folks. But with what her banker friend said I just wondered if this is common. Her hubby wanted to protest and take a stand that the dealership needed to eat the cost because it was their mistake but she only has 3 days to return the car and get her old car back.
PS- I am not a white collar detective, nor do I play one on TV, I was just being super cynical when I first brought it up! DH just bought a new truck a few days ago. One of the papers that was signed was a document that said if they made a mistake on the paperwork, we would have to come in and sign new papers. However, for things like the sale price and trade in amount, we have their quotes on that and they can't change that. What we would have to resign for would be if they screwed up the paperwork...........for example, if the loan was supposed to be $20,000 and they left a 0 off and wrote the loan for $2,000 instead. That would be a mistake that we would have to come in and sign new papers. It would be a mistake that was not part of our negotiated agreement. It is very similar to a document we signed when we bought our house. If they messed up some numbers from our contracted prices, we had to come resign. ***ETA So, IMO, I think it depends on what the mistake was as to whether or not she has to sign new paperwork. Does the paperwork match the negotiated price on the new vehicle? Did the amount they were going to give her for the trade match the amount they said they were going to give her for her trade? If not, she probably is legally required to resign. If they do match what was negotiated but they screwed up their negotiation, then I'm not so sure and I would contact a lawyer or just get my car back. |
|
georgiapea
Drama Llama
Posts: 6,846
|
Post by georgiapea on May 28, 2015 20:29:45 GMT
I would contact an attorney before going in to sign that new paperwork. I'd also contact the Better Business Bureau to find out if other complaints of that nature have been filed. But then I'm biased. I worked for an auto dealership and consider them all swarmy.
|
|
Deleted
Posts: 0
Apr 25, 2024 12:15:10 GMT
|
Post by Deleted on May 28, 2015 20:33:38 GMT
This is called de-horsing. Just from what you posted, I would bet that she was several thousands upside down and unless she had BRICK credit, they could not get the deal "bought" by the bank at the rate they had her figured at. It could be that she doesn't have stellar credit (think 750+). There is nothing illegal about what they did, there is also nothing "immoral" about what they did. It happens.
The only other way to change the payment is to come up with money down (downpayment) and my guess would also be that she did not have one, or a small one anyway.
|
|
|
|
Post by gritzi on May 28, 2015 20:36:26 GMT
There's no way I would accept a higher payment due to their mistake. I would be demanding the sale be void & my car be returned in the exact condition.
I'm not a fan of bait & switch, questionable business practices, etc. I would never do business w/them again.
|
|
quiltedbrain
Full Member
Posts: 429
Jun 26, 2014 3:34:53 GMT
|
Post by quiltedbrain on May 28, 2015 20:43:54 GMT
I had something very like this happen to me back in the day. I was in my early 20s and had leased my first car. When the lease was up, I actually had equity in it and was looking around for my best deal to trade up to a loan (this in the early days of leasing to individuals). So on a Saturday, DH and I went to the same dealership I leased the car from and ended up going home with a small pickup truck and a payment I was comfortable with.
On Monday, I got a call from the dealership saying that they got some numbers wrong and they needed me to come in. I went in, and they were trying to raise my payment by $50. I was very unhappy, refused to pay more and wanted my car back. They said they couldn't get it for me because it was being detailed at that very moment. I left with the understanding that they would call me when my car was ready, still had the new truck. When my DH got wind of what was happening (this was back in the day before cell phones and he worked out of town), he called them and was very irate. For him, they dropped the $50 in a heartbeat. I was LIVID!! Why would they drop it for him, but not me. The car was in my name, not his.
I still refused to keep the truck and told them I'd be there first thing the next morning to get my car. When I arrived, the sales manager started yelling at me for being unreasonable! I stood my ground and waited for my car. To this day, I think they were trying to pull something on my because I was a woman. Jerks!
|
|
|
|
Post by originalvanillabean on May 28, 2015 20:46:56 GMT
I think it's a terrible situation to be in, but it really could be an error. If not though, and they are trying bait and switch (which is likely since it impacts the mo payment amount) then I hope she gets out of it exactly what she wants. (old car back).
What if they tell her they don't have her car anymore? They sent it to auction or sold it to another buyer.
|
|
|
|
Post by 3SugarBugs on May 28, 2015 20:49:12 GMT
Please tell her not to re-sign..she is protected under Truth in Lending. This is a Regulation Z error and the lender is bound to the contract that is signed. The Dealer is asking her to come back because they are making less on the deal...the actual lender knows they are bound.
|
|
|
|
Post by kellybelly77 on May 28, 2015 20:59:38 GMT
This is called de-horsing. Just from what you posted, I would bet that she was several thousands upside down and unless she had BRICK credit, they could not get the deal "bought" by the bank at the rate they had her figured at. It could be that she doesn't have stellar credit (think 750+). There is nothing illegal about what they did, there is also nothing "immoral" about what they did. It happens. The only other way to change the payment is to come up with money down (downpayment) and my guess would also be that she did not have one, or a small one anyway. Aack! I went and googled this and it does sound like what is happening to her. It's crazy to me to think that a dealership can take her car, promise her financing and then just yank the rug out several days later and not even have to give her her old car back. I know she has almost perfect credit but she was upside down in her old car. |
|
|
|
Post by Anna*Banana on May 28, 2015 21:00:11 GMT
And this is why you need to go over any paperwork with a fine tooth comb, over all the math and the terms. I know the last time we purchased a car, the finance paperwork said that they were quoting based on something I may not qualify for and if I don't qualify for the terms they were plopping in there (at the time it was 0% promotion offered by the manufacturer), I was bound by the interest and terms the dealership was offering. I can't remember exactly, but their terms were laughable. Because of that, we hadn't purchased a car with a loan in a while, we did not sign. We went back to our Credit Union and got preapproved for a loan, then went back and signed new paperwork. One that stated if the promotion fell through for some crazy reason we could use our own financing.
|
|
|
|
Post by 2peaornot2pea on May 28, 2015 21:12:46 GMT
kellybelly77, Your sister doesn't have three days after signing the contract to change her mind and cancel. The "cooling off rule" only applies in very specific circumstances. Going to an auto dealership and purchasing a car isn't one of them.
|
|
gina
Pearl Clutcher
Posts: 3,199
|
Post by gina on May 28, 2015 21:23:49 GMT
I have heard of this happening before and it sounds shady on the dealer's part. I would NOT return and NOT re-sign any paperwork!
|
|
scrapaddie
Drama Llama
Posts: 5,090
|
Post by scrapaddie on May 28, 2015 21:30:00 GMT
I think it's a terrible situation to be in, but it really could be an error. If not though, and they are trying bait and switch (which is likely since it impacts the mo payment amount) then I hope she gets out of it exactly what she wants. (old car back). What if they tell her they don't have her car anymore? They sent it to auction or sold it to another buyer. I remember looking for a car in the late 70s. The salesman actually told me to come back with my husband and he would let me test drive. It goes without saying that I never went back. |
|
|
|
Post by elaine on May 28, 2015 21:57:19 GMT
kellybelly77, Your sister doesn't have three days after signing the contract to change her mind and cancel. The "cooling off rule" only applies in very specific circumstances. Going to an auto dealership and purchasing a car isn't one of them. It depends on the state - I've lived in several states where buying a car from an auto dealership DEFINITELY qualifies for the cooling off rule. |
|
|
|
Post by elaine on May 28, 2015 22:00:22 GMT
This is called de-horsing. Just from what you posted, I would bet that she was several thousands upside down and unless she had BRICK credit, they could not get the deal "bought" by the bank at the rate they had her figured at. It could be that she doesn't have stellar credit (think 750+). There is nothing illegal about what they did, there is also nothing "immoral" about what they did. It happens. The only other way to change the payment is to come up with money down (downpayment) and my guess would also be that she did not have one, or a small one anyway. Aack! I went and googled this and it does sound like what is happening to her. It's crazy to me to think that a dealership can take her car, promise her financing and then just yank the rug out several days later and not even have to give her her old car back. I know she has almost perfect credit but she was upside down in her old car. Like Anna banana did, we ALWAYS get preapproved for a loan from our credit union before setting foot in a dealership. Your sister might want to try that next time she goes in so that she doesn't have to depend on dealership financing. |
|
|
|
Post by kellybelly77 on Jun 1, 2015 17:09:36 GMT
See up top for update!
|
|
Deleted
Posts: 0
Apr 25, 2024 12:15:10 GMT
|
Post by Deleted on Jun 1, 2015 17:39:24 GMT
Aack! I went and googled this and it does sound like what is happening to her. It's crazy to me to think that a dealership can take her car, promise her financing and then just yank the rug out several days later and not even have to give her her old car back. I know she has almost perfect credit but she was upside down in her old car. Like Anna banana did, we ALWAYS get preapproved for a loan from our credit union before setting foot in a dealership. Your sister might want to try that next time she goes in so that she doesn't have to depend on dealership financing. Preapproval is a good idea, for sure...but don't assume "dealership financing" is always going to be terrible.
We went in, pre-approved through USAA and the dealership beat the interest rate. I was shocked because I assumed USAA would be best.
|
|
