Zarken
Club Member
thanks for the advice.
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Car Dealer/ Personal opinion: input.
- Thread starter Zarken
- Start date
thanks for the advice.
I second that, talk to an attorney. Who cares if they're friendly, it sounds like they trying to F you.
ultradriver10000
Forum Member
I thought financing had to be settle before they let you roll out with the car. I'm guessing someone at the bank saw the amount of negative equity trying to be financed on a focus and said oh heck no. Let us know how it goes.
moneypit
Club Member
Its called a spot delivery, and very common, Lots of dealers do it on Friday late and saturdays
you have a few options
return the car and walk away
sign the new deal
try to get your own loan,
pray they havent sold your trade in
read here
http://www.theconsumerlawgroup.com/library/consumer-law-beware-of-the-spot-delivery-technique.cfm
https://www.michigan.gov/documents/cis_ofis_spotdel_24239_7.pdf
2nd paragraph down
http://www.garmokiste.com/michigan-spot-delivery-and-automobile-dealer-fraud-attorneys/
read this and get ahold of steve
http://www.roadandtrack.com/car-culture/a30303/beware-the-spot-delivery/
car dealers fear him
you have a few options
return the car and walk away
sign the new deal
try to get your own loan,
pray they havent sold your trade in
read here
http://www.theconsumerlawgroup.com/library/consumer-law-beware-of-the-spot-delivery-technique.cfm
https://www.michigan.gov/documents/cis_ofis_spotdel_24239_7.pdf
2nd paragraph down
http://www.garmokiste.com/michigan-spot-delivery-and-automobile-dealer-fraud-attorneys/
read this and get ahold of steve
http://www.roadandtrack.com/car-culture/a30303/beware-the-spot-delivery/
car dealers fear him
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WhiteHawk
Club Member
If they sold your car and take the new one back, it might be a blessing in disguise. If you were underwater on the old one, they will probably try to charge you for the difference after taking the new one back. At that point though, they must rely on collection or court - they can't just take money from you on the spot. You just have to find a new ride.
You can make them work for it at least! You just have to prove hardship to the judge, and he might let you slide with something silly like paying $40 per month until it is paid off.
-Geoff
You can make them work for it at least! You just have to prove hardship to the judge, and he might let you slide with something silly like paying $40 per month until it is paid off.
-Geoff
ultradriver10000
Forum Member
But if they solid it, it was probably auctioned off for less than what he could have sold it for on his own. Most new car dealerships don't sell trade in's unless they are like new.
Y'all posting MI law, he is in Kentucky.
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Tin
Club Member
And you're in Michigan now, we say "you guys". :lol:
hangemhigh
Club Member
And as the saying goes..."If you don't pick up one a month, you're not spotting enough cars"....
4Gas$
Club Member
http://www.lemonlaw.com/spotdelivery.html
Beware of 'Spot Delivery' and Don't be Put on the Spot!
So you purchased a beautiful new car, signed all the necessary paperwork, and drove it right off the lot with a big smile on your face. The dealer got you approved "on the spot" – or so you thought.
A few days or weeks later, the dealer calls and asks you to return to "sign a few more papers." They say, "We couldn't get the car financed, and you need to sign a new loan with another bank," or "You need someone to co-sign," or "Give us another $1000 and we can do the deal," or "We need to increase your monthly payment to get this done."
The dealer may even have delayed paying off a traded vehicle loan or refused to mail registration papers, all to place additional pressure on you to either do as instructed, or face dire consequences to your credit.
Sound familiar? It gets worse.
If you refuse, the dealer may threaten to repossess the car, tell you that you have no legal entitlement to keep it, or even make you wait for hours at the dealership under some excuse, just to wear you down. This situation is most common involving consumers with bad credit, since dealers perceive that such people are vulnerable and easy to take advantage of.
Most consumers assume the dealer is telling the truth and will do whatever the dealer says, resulting in higher payments, additional money being spent over the life of the loan, and/or thousands of dollars in increased "hidden" costs. Those who refuse see their cars repossessed.
What is happening here? It's a scam. Dealer fraud. Unlawful. Illegal.
Call it what you will. The industry has given it a name: Spot Delivery, a description which refers to the dealer placing a consumer in a car "on the spot," to get the sale, only to "yo-yo" them back at a later date for additional funds. Played to perfection, a dealer can reap thousands of dollars in unearned fraudulent gain.
What You Should Know About Spot Delivery
If you signed purchase documents and registration applications and if you obtained insurance for the vehicle, had a new license plate put on the car, and/or had your old plate transferred, the car belongs to you.
Spot Delivery happens to unsuspecting consumers throughout the United States. If you find yourself in this situation, the chances are good that you have legal remedies available to right this wrong.
How to Protect Yourself from Spot Delivery or Dealer Fraud
Remember that if you have signed papers, you own the car, regardless of whether the vehicle has been financed.
Your credit was good or the dealer would not have delivered the car to you at the price you agreed to pay.
A finance document showing payments, deposit, interest rate and other financial items is a binding contract, giving you specific legal rights.
You own the car subject to making payments only. The dealer cannot change that once you take possession.
Keep all copies of your paperwork and anything else associated with the sale (including calendars, photographs, advertisements).
If the finance manager asks for your papers at any time for any reason, refuse! Keep these documents in a safe place (not the car).
If you are called back to the dealership to sign additional papers, either do not go or do so in a different car than the one you bought.
Have a friend or spouse drive you and witness whatever is being told to you. This will prevent the dealer from taking your car as hostage, an all too common occurrence.
If a dispute arises with the dealer over the contract and the dealer demands the car is returned, park it in a garage or remote location until the matter is resolved to prevent it from being taken against your wishes.
Put together a complete time line of everything that happened from the time you thought of purchasing the car until the car was taken away. Try to remember specific names of dealership personnel and any statements that were made to you during conversations with the sales and finance staff.
Keep track of all monies you had invested into the purchase, including registration, insurance, down payment and trade. Never pay cash and always get a receipt!
Kimmel & Silverman are only able to assess Spot Delivery cases in PA and NJ. For other states, please contact your state Attorney General's office.
Beware of 'Spot Delivery' and Don't be Put on the Spot!
So you purchased a beautiful new car, signed all the necessary paperwork, and drove it right off the lot with a big smile on your face. The dealer got you approved "on the spot" – or so you thought.
A few days or weeks later, the dealer calls and asks you to return to "sign a few more papers." They say, "We couldn't get the car financed, and you need to sign a new loan with another bank," or "You need someone to co-sign," or "Give us another $1000 and we can do the deal," or "We need to increase your monthly payment to get this done."
The dealer may even have delayed paying off a traded vehicle loan or refused to mail registration papers, all to place additional pressure on you to either do as instructed, or face dire consequences to your credit.
Sound familiar? It gets worse.
If you refuse, the dealer may threaten to repossess the car, tell you that you have no legal entitlement to keep it, or even make you wait for hours at the dealership under some excuse, just to wear you down. This situation is most common involving consumers with bad credit, since dealers perceive that such people are vulnerable and easy to take advantage of.
Most consumers assume the dealer is telling the truth and will do whatever the dealer says, resulting in higher payments, additional money being spent over the life of the loan, and/or thousands of dollars in increased "hidden" costs. Those who refuse see their cars repossessed.
What is happening here? It's a scam. Dealer fraud. Unlawful. Illegal.
Call it what you will. The industry has given it a name: Spot Delivery, a description which refers to the dealer placing a consumer in a car "on the spot," to get the sale, only to "yo-yo" them back at a later date for additional funds. Played to perfection, a dealer can reap thousands of dollars in unearned fraudulent gain.
What You Should Know About Spot Delivery
If you signed purchase documents and registration applications and if you obtained insurance for the vehicle, had a new license plate put on the car, and/or had your old plate transferred, the car belongs to you.
Spot Delivery happens to unsuspecting consumers throughout the United States. If you find yourself in this situation, the chances are good that you have legal remedies available to right this wrong.
How to Protect Yourself from Spot Delivery or Dealer Fraud
Remember that if you have signed papers, you own the car, regardless of whether the vehicle has been financed.
Your credit was good or the dealer would not have delivered the car to you at the price you agreed to pay.
A finance document showing payments, deposit, interest rate and other financial items is a binding contract, giving you specific legal rights.
You own the car subject to making payments only. The dealer cannot change that once you take possession.
Keep all copies of your paperwork and anything else associated with the sale (including calendars, photographs, advertisements).
If the finance manager asks for your papers at any time for any reason, refuse! Keep these documents in a safe place (not the car).
If you are called back to the dealership to sign additional papers, either do not go or do so in a different car than the one you bought.
Have a friend or spouse drive you and witness whatever is being told to you. This will prevent the dealer from taking your car as hostage, an all too common occurrence.
If a dispute arises with the dealer over the contract and the dealer demands the car is returned, park it in a garage or remote location until the matter is resolved to prevent it from being taken against your wishes.
Put together a complete time line of everything that happened from the time you thought of purchasing the car until the car was taken away. Try to remember specific names of dealership personnel and any statements that were made to you during conversations with the sales and finance staff.
Keep track of all monies you had invested into the purchase, including registration, insurance, down payment and trade. Never pay cash and always get a receipt!
Kimmel & Silverman are only able to assess Spot Delivery cases in PA and NJ. For other states, please contact your state Attorney General's office.
what he said
Zarken
Club Member
At the dealer, tried calling several attorneys today. None called me back. So I stuck to my guns with what I read so far.
the are trying to work a deal where I chip in $1500 and dealer matches and my payment goes down to $333. So cheaper than before. This is with a bank that's already approved me but only for the car not for the negative equity. Should know in the next 30 minutes.
the are trying to work a deal where I chip in $1500 and dealer matches and my payment goes down to $333. So cheaper than before. This is with a bank that's already approved me but only for the car not for the negative equity. Should know in the next 30 minutes.
4Gas$
Club Member
Zarken
Club Member
So, end of the day, 1.5k out of pocket, dealer I am guessing gave up any possible gains on the trade or what ever and was able to make a deal. Previous finance amount was 23.5k new finance amount is 18.9k .
that includes full pay off of my trade in. New payment is lower than previous at 333/m
while I don't like coming off the cash, think in the end, this may be a much better deal as the finance amount is much lower.
All of your input was able to get me to this point. If they weren't able to get this done, I was going to walk
