I purchased a truck on feb 1 and the week of feb 13 the dealership started calling me telling me there was a problem with the application. Then on the 18th the dealership called and asked me to come in because the contract needed to be restructured because they cut them $1400 short. When I got to the dealership they told me that they wanted $960 more from me. The bank has already issued me my billing statement and given them the money, I told the dealership I was not giving them anymore money. I would like to know if the dealership has any rights to the truck since they accepted the money from the bank and I have already signed paper with the original agreement
I assume they refuse to hand over the truck. NO, they do not. On its face it sounds like fraud. Short of hiring a lawyer, tho you may need to, speak with the Md State Police, who license car dealers, and the Consumer Protection Div of the Md Attorney General's Office.
If all else fails call me at 410-292-6989 and I will see what I can do.
Information here is general, does not create a lawyer-client relationship and is not a substitute for consulting with an experienced attorney on the specifics of your situation.
If you have a statement from the bank then it sounds like the dealer is playing the old "yo yo" game (that literally is what they call it). That's where they toss you out there, you thinking you have a done deal, and then reel you back in, saying they need more money from you to make the deal happen. The whole thing is most often just a ploy to get more money out of you because the down payment money ends up in the dealer's pocket, unlike the amount being financed which is bank money and has to be accounted for. You have a right to be suspicious of what is really going on. They do it because they know that if they can put you in their car and take you out of your old car, then they also take you out of the shopping market and that keeps you from buying somewhere else. They worry about setting up the financing later and if they can't set up a loan, then they may call you back and say they need more money down or the lender requires you to have a service contract as part of the deal or some other excuse. They may even say you have to sign a new contract for one reason or another (a better loan rate, you don't qualify with that lender, etc). In many states, that can be illegal. Look at your sales paperwork for a document that is often called a “Spot Delivery” or “Bailment” Agreement. That's a paper that says what how long the dealer has to set up the loan and what happens if they don't get it done on time. It usually says they have 3 to 30 days (usually on the short side of that total) and that if they can't set up a loan then you have to give them back the car and maybe pay for the mileage you drove on it. Whether or not you get your trade in or down payment back should also be covered. This whole process is called "dehorsing" by the car dealers themselves (you can read a Car Dealer's Slang Dictionary by clicking on the link below) and doing it can be a violation of most state Unfair & Deceptive Acts and Practices laws (there’s a link below for that too). If your amount being financed is less than $50,000 (to find out just look at your finance contract's "federal box" where key finance numbers are stated) then doing this to a consumer very likely is also a violation of the federal Truth In Lending Act too (a law that deals with financing). Some states also have a law that specifically applies to car dealers doing this sort of thing. If you don't have any spot delivery document in your deal and there is nothing on the finance contract that says it is contingent on financing approval and it says on it that the "creditor" is the dealer, then your deal was probably a final contract and if the dealer can't get a lender to finance the sale for you then legally the dealer is stuck having to take your loan payments or else let you out of the deal, but of course they won't tell you that and they will probably deny it. You need to talk to a local Consumer Law attorney who deals with this kind of case (it's called AutoFraud). Call your local attorney's Bar Association and ask for a referral to a Consumer Law attorney near you or you can go to this web site page for a Free Online 50 State National List of Consumer Law Lawyers (there’s a link for that below too) and find one near you (lawyers don’t pay to get listed here and most of them are members of the only national association for Consumer Law lawyers). But act quickly because for every legal right you have, there is only a limited amount of time to actually file a lawsuit in court or your rights expire (it's called the statute of limitations), so don't waste your time getting to a Consumer Law attorney and finding out what your rights are. If this answer was helpful, please give it a “Vote Up” review below. Thanks for asking and good luck. Ron Burdge, www.CarSalesFraud.com
This answer is for general purposes only and does not establish an attorney-client relationship. Click the link to find a Consumer Law attorney near you.
Based upon the actual events of occurance either or of your could be right and the answer is somewhere in the documents which both of you are obligated to abide by (albeit your responsibilities are limited to providing accurate information and making payments). If they are trying set the paperwork aside bc of their error - they are wrong and you should proceed directly to the Consumer Protection Division of the Attorney General's Office.
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