DS's car loan problem

[JoAnn Senior Member Find all posts View Profile Close JoAnn]

A couple of weeks ago our DS called and said he had bought a 'newer' truck. Traded in a big Dodge truck for a Toyota Tacoma, 2 yo. very clean. Then this week he called me and said that either the loan company or the Used car dealer told him he needed $2500 more, and would get a better interest rate. He told them he didn't have that much. Seems as though the sales man wrote down that Dave made $15 an hour at Publix, when DS told him he makes $10. Now the bank wants more money, because of Dave's hourly pay. Dave did agree to pay them $500 more and get a lower rate, but we don't think this is a done deal yet. They are threatening to come and take the truck back. DH & I think the lying salesman (sort of like a TS salesman) should pay the difference or????? since he is the one who falsified the record. What recourse would our son have? (he is way over 21)

[Spence Super Moderator Find all posts View Profile Close Spence]

What kind of outfit are they dealing with, didn't he have an approved loan when he drove the truck away? I just traded my big beautiful 02 Chevy Silverado extra cab for a 05 baby diesel jeep, dealership was upset that I didn't want a loan. When I went to register it at Motor Vehicle Admin they always seem to act as if it is not natural not to have a lien to register.

[joycapecod Silver Contributor Find all posts View Profile Close joycapecod]

Did you son sign the credit application? If he signed the credit app with the $15 per hour stated he will have no recourse (as far as I know, since state laws vary from state to state). If the credit app was falsified AFTER he signed then he should have recourse.

The issue here is that credit applications are now done on line and the one signed in the finance office may not be the information submitted to the bank.

Have you son ask for a copy of his signed credit application that he should have filled out in the finance office prior to signing a finance contract.

I've been in the auto industry for over 30 years....PM me for my phone number if you need details on what to do and ask for.

Joy

[PigsDad Senior Member Find all posts View Profile Close PigsDad]

A couple years back the local TV news ran a story on this "scam". Car dealers make a deal w/ a buyer, but in the fine print is says the deal basically is not complete until the credit application is approved by the lending institution. All the buyer is signing originally is a loan application, not the actual loan agreement. In the fine print, it states the terms of the loan are subject to change based on approval.

Of course, by the time the loan is approved, the buyer has been driving around their new vehicle for a week or so, and not eligible to simply return it w/o paying for usage / depreciation / etc. Not to mention that they have already turned in their trade-in vechicle to the dealer, and that may be gone / sold already (and you can bet the contract states that the dealer can do that legally as soon as the buyer turns in the trade-in vehicle).

According to the story, there was very little legal recourse for the buyer since it was all spelled out in the contract (in the fine print, or course). Their suggestion is that when you are getting dealer-sponsored financing, you should never take possession of the vehicle until the loan is finalized. Or better yet, come in with your own financing.

I hope that I am wrong, but it sounds like your DS fell into this trap. You need to read the fine print to see what (if any) recourse he may have.

Kurt

[PHILL12 Senior Member Find all posts View Profile Close PHILL12]

This post shows why many of us tax paying families couldn't careless about saving these car salesman jobs!

There the same low-life as timeshare salesmen!

We know they jerk you around and lie to you just to sell you a car but needing cars we buyers have to deal with it.

Last year we decided to buy a second car after giving our daughter our new car. We walked into the Honda dealership and told him what we wanted and will not play games. Told him all he can do is kill a deal so lets work on buying this car.

Two hours later this clown was still playing games with price and my wife asked him if he understood english! Looking at her kind of funny he answered "YES I DO". She then asked why the games with the figures changing everytime we agree on a price and was given the stupid car sales crap "IT IS THE MANAGER THAT WON'T AGREE TO PRICE".

My wife now ticked off said lets get his straight now everytime you come up with price and we agree to terms he says no and sales replied that is it.

My wife got up and said we are out of here.

I turned to this clown and said after me telling you no games you played games just wasting our time and did kill a sale.


As far as I am concerned they can lose their jobs like everyone else the gov doesn't bailout!

PHILL12

[1950bing Senior Member Find all posts View Profile Close 1950bing]

Take the truck back and tear up the contract. Find a better dealer!