Questions on buying Toyotas/Potential Car Salesman Shenanigans

[pokeraz]

It happens. Trade-ins are not supposed to be sold until the contract has actually been funded by the bank. They slip thru the cracks every now and then though. It can get ugly especially if we can't get the guy approved for anything. In that case, you just negotiate a value for the car and realize that guy will hate you forever and you'll usually end up in court defending yourself. You can only recover the value of the car as long as no fraud was involved. In most cases, the dealership will bend over backwards trying to make the customer happy when this stuff happens.

[Bostaevski]

In Washington State the dealership can't do anything with your trade in (aside from getting it ready to sell) until the deal is finalized. Of course, shady dealerships probably sell the car out from under the buyer all the time, or else park it at the sales manager's house, or just put a tarp over it and leave it on the lot.

[spentrent]

[ QUOTE ]
I was a finance manager in a dealership for 10 years.

The laws will vary state to state. I am only familiar with AZ and this is very common here. However, it is not a 'tactic'.

Here, we send people home in cars without having first secured financing. We're pretty good at what we do though and can very accurately judge what banks will approve and what they will not. We'll then write a contract based on that. However, occaisionaly we get it wrong and the bank will require different terms in order to approve a loan. A deal is not a deal until the contract is purchased by the financial institution. So, if the bank approval differs from what the contract is written at, we will need to write a new contract. That often means more money down or a different interest rate or even a change in the number of payments.

Of course, you do not have to sign a new contract. You can give the car back though this rarely happens because as stated above, people fall in love with the car and usually will do anything to keep it.

[/ QUOTE ]

Scumbag.

[OrigamiSensei]

This happened to my wife before we were married. She negotiated and held them off for as long as she could and then simply threw the car back. The dealership wasn't very happy about it but they screwed up. Meanwhile my wife got to drive a new car for a few weeks.

[gusmahler]

[ QUOTE ]
You can give the car back though this rarely happens because as stated above, people fall in love with the car and usually will do anything to keep it.

[/ QUOTE ]
That's odd. If a dealer put my through that, I wouldn't hesitate to give the car back. Then I'd buy a similar car from a different dealer, and set up the financing up front from my bank.

[pokeraz]

[ QUOTE ]
[ QUOTE ]
You can give the car back though this rarely happens because as stated above, people fall in love with the car and usually will do anything to keep it.

[/ QUOTE ]
That's odd. If a dealer put my through that, I wouldn't hesitate to give the car back. Then I'd buy a similar car from a different dealer, and set up the financing up front from my bank.

[/ QUOTE ]

The thing is, if you are ever in this position, it is because you have bad/questionable credit and you will face the same issues no matter where you buy your car. We all use the same banks and buy our cars for the same price from the same manuf. If you don't pay your bills on time and want to finance, you lose some bargaining power.

[moondogg]

[ QUOTE ]
It happens. Trade-ins are not supposed to be sold until the contract has actually been funded by the bank. They slip thru the cracks every now and then though. It can get ugly especially if we can't get the guy approved for anything. In that case, you just negotiate a value for the car and realize that guy will hate you forever and you'll usually end up in court defending yourself. You can only recover the value of the car as long as no fraud was involved. In most cases, the dealership will bend over backwards trying to make the customer happy when this stuff happens.

[/ QUOTE ]

What dealership do you work for, so I can be sure to stay the hell away from there?

[bwana devil]

this sparks a question i have about a friend of mine who bought a car last month. he decided on the car and arranged for financing through his bank. when it was time to do the paperwork it was discovered there was no title. he was in love w/ the car and they sold it to him w/out the title telling him theyd get it for him w/in 3 weeks.

doing it this way his bank wouldnt finance w/out the title so he had to finance through the dealer w/ what he calls a dummy loan.

he says the dealer loan is only good until the title is found and he has verbally been told he wont pay any interest on this dummy loan which has a much higher interest rate than his bank loan. once the title is found his bank loan will take effect. it's been about 6 weeks now and there is no title found yet. i advised him repeatedly not to do this but he fell in love w/ the car and had to have it.

my question: wtf?

what happens if the title is never found? the flip side of that is he's set himself up so they can find it next week, give him the title and tell him he's stuck w/ the dealer loan. anyone have any experience in a situation like this?

[bobman0330]

[ QUOTE ]
this sparks a question i have about a friend of mine who bought a car last month. he decided on the car and arranged for financing through his bank. when it was time to do the paperwork it was discovered there was no title. he was in love w/ the car and they sold it to him w/out the title telling him theyd get it for him w/in 3 weeks.

doing it this way his bank wouldnt finance w/out the title so he had to finance through the dealer w/ what he calls a dummy loan.

he says the dealer loan is only good until the title is found and he has verbally been told he wont pay any interest on this dummy loan which has a much higher interest rate than his bank loan. once the title is found his bank loan will take effect. it's been about 6 weeks now and there is no title found yet. i advised him repeatedly not to do this but he fell in love w/ the car and had to have it.

my question: wtf?

what happens if the title is never found? the flip side of that is he's set himself up so they can find it next week, give him the title and tell him he's stuck w/ the dealer loan. anyone have any experience in a situation like this?

[/ QUOTE ]

Well, I assume the person from whom the car was stolen will show up eventually and take it back.

[oddjob]

[ QUOTE ]
what happens if the title is never found?

[/ QUOTE ]

i believe they register for a new title, possibly a salvaged title, if the car doesn't come up in the database, stolen, it's free and clear.