Overhaulin'

Financed a car through Capital One, now dealer says I owe them money?

My mother and I recently applied for a Capital One auto loan and were approved. We went to a dealer who was associated with Capital One and purchased a car. We signed a contract that stated the price of the vehicle, and total financed cost after sales tax, License fees, etc. and a $0 down payment that both the dealer and I signed. 1 week later we get a phone call from Capital One saying that no paper work, nor the blank check that we were given had been processed, and that the dealer went over the LTV limit (110% of invoice price). The dealer is now saying, we're going to have to pay the difference even though we agreed upon a $0 down payment. My question is, Who is liable for the difference? Since Capital One's requirements state that the loan cannot be over 10% the value of the car, yet the dealer wrote up a contract in spite of that and let us drive away with the car. We even double checked with the person who went over the contract with us, that we would not be asked to pay any extra cost after we drove away in the car. TL;DR Financed a car through Capital One with no Down payment at a dealer, one week later they say we owe them money because they went over the LTV limit, who's responsible, the dealer who overlooked the LTV limit?

Public Comments

1. The dealer should "man up" and take the hit, or they should just null out the contract and take the car back as "USED". If you take the car back, be sure to ding it up a bit to really devalue the car. They'll make sure they do their paperwork correctly next time.
2. === go to Capital ONE and talk to the loan officer === find out if the dealer is ""pulling a fast ONE""" on you .... do not pay one dime to the dealer ..... if you call the bank you have no record of the transaction .... go to C_ONE and ask that they do something about the loan === let them tell you what you must do to satisfy the loan -- either add another $25.00 to monthly or cancel the loan and return the car ... do not scar or mar the car ..... surrender the car to the Capital ONE bank and get a letter stating the reason for the return and a receipt for the car ... the dealer is full of ""corn"" and this is a scam to get you to pay more ......... be cautious and do not talk to the dealership {{no words - no cuss fight - no nothing}} ----- ONLY talk to the bank .. in person ..... get a lawyer if necessary .... the bank tells the dealer what to do and in this case the dealer is a crook ....
3. The only thing you are bound to is what you agreed to. If the dealer or the bank will not accept this take the car back and find a dealer that is willing to work with you. Don't fall for the dealers' tricks, stand your ground and force the issue. Good luck
4. You do NOT have to pay another dime. But you may have to return the car & walk away from the deal. Pick one. Deals are regularly done where they THINK the deal will be approved and they later find out it was not. You hold the cards. Take the car back & walk away. If they take it back, you find out there were not bluffing. If they find a way to keep the deal as it was written, you know they were. All that being said, it doesnt automatically mean they were trying to rip you off. Depends on what 110% of what ? Retail ? If you agreed to pay more than 110% of retail, you overpaid anyway. Be glad you have an out. Even with tax & fees, it should be more than 110% unless you overpaid.