Overhaulin'

can a car dealer sell your trade in before your new deal goes through finance?

The dealership called me 3 weeks after i signed the paperwork and said give us more money down or we will repo the vehicle. At the time they had stickers in my trade and screwed with it while it was on the lot. There are a lot of holes in their complaint. They raised the finance total on me. I dont know if there is anything I can do

Public Comments

1. Did you finance the car with the dealership or with a bank? Because if it is with a bank they are out of the picture. The Bank it the only one that will be allowed to repo a car and they cant do that till you are late with the payments.
2. I seriously doubt it! If you already signed the paperwork for a certain amount down, etc, that is a contract and they are as bound by it as you.
3. Hold on, folks. The contract you signed when you took delivery is contingent upon the bank financing your deal. Sounds like the dealer did a "spot delivery" based upon your credit score. The finance office believed they could get you financed at the rate they proposed based on criteria. Sounds like, after 3 weeks, they could not do this. This is because of the credit crunch going on. Banks are turning down loans that would have been a "sure thing" a year ago. In short, the car still belongs to the dealer, and if you refuse to return it, they can indeed send someone to get it back. Go back to the dealer with their vehicle, tell them you do not accept the new terms they are asking, and get your old car back. Hand them the keys to the new vehicle, and walk away. They cannot sell your trade until a bank signs off on the deal. Go to your bank, credit union, etc., and get pre-approved. Then, go shopping again.
4. There is something you can do. Be smart and finance through your favorite banking institution. And be sure it is one you can reasonably afford, too. Otherwise, give their car back.
5. I doubt very much the dealership worded it that way. More likely they said something on the order of "Based on your credit report, we won't be able to get financing for you unless you pay more down or accept a higher interest rate which will lead to a higher payment." As to your trade, you sold it to the dealer in return for a reduction in the price of the car you are looking to finance, or if you still owed on it, they invested their money into paying it off and giving you credit for your equity. In either case, it's their car now and they don't have to return it to you even if the financing falls through. What can you do? Several things. Seek your own financing. Pay a higher down payment and accept their financing. In either case the car would then be yours. Or if you prefer, return it to them, it is still theirs, not yours. You can ask for your trade back and they may return it, but again, they don't have to do that. You obviously owe them something for using their car for 3 weeks. Now you know why it's not a good idea to take spot delivery until you know for sure that the financing has been approved and is in place. I do wish you well.
6. The dealer CANNOT do anything with your trade-in until they get your loan funded on the new car. They jumped the gun and paid it off, reconditioned it and put it up for resale. Your trade in DOES NOT belong to them. It is still your car since it was one of the many parts of the deal ... the selling price, the APR, your down and the trade. If any of these pieces fell through, there is no deal. The contract you signed is now void and nonenforceable. If they still have the trade, they need to give it back to you. If they've already paid it off, they need to finance you at the trade-in price and with NO interest. Any reconditioning work they did on it cannot be charged back to you. If they've already sold your trade-in, they need to give you a check for the MARKET value of the car. Not the trade-in value. If they refuse, take the check for trade-in price and sue them for the balance in Small Clains Court. No dealer has the right to pay off or sell a trade until the deal on the new car is funded. These idiots couldn't wait so it's their butts on the line. Don't let them threaten you in any way. If they do, file a complaint against them with your local City Attorney's office. NOTE: I got part of my message mixed up. If they already paid off your trade-in, they owe you the trade-in amount or the car. Or they should finance another car for you at no interest since they screwed up. Give them that ultimatum. You should get your old car or a check within 24 to 48 hours.