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Dealership didn't pay off the loan for a trade-in
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01-06-2016, 07:16 PM | #1 |
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Dealership didn't pay off the loan for a trade-in
Hello, I need an opinion or advice with this issue please, so a friend of mine bought a brand new car from a dealership. As part of the transaction, he traded in his car that was still being financed so there was a loan the dealership had to pay off.
It has now been 1 month and the loan on the trade-in remains unpaid, and the dealership said that the cheque to pay off the traded-in car was allegedly sent 2-3 weeks ago to the bank. I'm not sure if anyone has experienced this before but would you trust the dealership and keep waiting to see if the bank receives this cheque? Or do you keep hounding them? Or do you seek legal advice as this appears to be a breach of contract? Any help would be great! Thanks. |
01-07-2016, 12:38 AM | #2 |
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In BC we have the Vehicle Sales Authority of BC and Ontario has the same kind of thing.
Look in the FAQ's here: https://www.omvic.on.ca/portal/Consu...oIndustry.aspx and there is actually a link to this question (Lien on a car traded in that the dealer agreed to pay)... if there is no timely resolution, you can make a claim to the Motor Vehicle Dealers Compensation Fund. I forgot to mention that the OMVIC should cover all 'registered' dealerships in Ontario, it doesn't matter if it's a BMW (or any major brand) dealer or a smaller private one. Good luck! Last edited by hunter82; 01-07-2016 at 10:31 AM.. Reason: additional information |
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01-07-2016, 08:45 AM | #4 |
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Exactly! When I bought my car at BMW dealer, they paid Acura Finance on the same day of the transaction. Sounds very fishy to me. In any situation involving money, if there are delays without a good reasonable explanation... you're being scammed most likely. And "we sent it 3 weeks ago" is not a good explanation at all! For financial transaction like this it should be wired or at the very least sent via registered mail.
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01-07-2016, 03:01 PM | #5 |
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There are a LOT of shady private dealerships in TO.
You may want to start looking at your legal options. Hope all your paperwork is in order or this may get thrown out!
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01-08-2016, 07:48 AM | #6 |
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01-08-2016, 07:51 AM | #7 |
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Do you know what happened to the car that was traded in? Is it on the lot of the dealership where your "friend" traded his car in? The reason I ask is because if the car is on the lot, the dealer is likely waiting to sell the car before they send the money over to clear the lien. Unethical either way...hope you get this resolved asap...
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01-08-2016, 04:14 PM | #8 |
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Interesting article today, you might find it applicable.
http://thegarage.jalopnik.com/how-to...car-1750787632 |
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01-08-2016, 06:51 PM | #9 | |
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Quote:
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01-08-2016, 06:54 PM | #10 | |
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01-09-2016, 04:38 PM | #11 |
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Update:
I went to the dealership with my buddy today and long story short, I spoke with the Manager who advised me that they issued a stop payment on the "original" cheque that was "mailed" to the bank and reissued a new one and hand delivered it on yesterday. So in other words it sounds like somebody just either forgot or screwed up a simple task. Either way we will see if this cheque actually gets received this time. |
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01-11-2016, 07:35 AM | #12 | |
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Quote:
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01-11-2016, 12:50 PM | #13 |
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^ if the cheque ends up in the wrong hands such as mis delivered or the other dealership lost the cheque etc etc
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01-11-2016, 03:55 PM | #14 | |
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01-12-2016, 05:35 AM | #15 |
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aside from this cheque thing ... why would the wholesaler even buy a car still has lien on it to begin with ? That is a complete bs explanation and nonsense.
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01-14-2016, 06:27 PM | #17 |
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Update from today actually:
Dealership has paid off the loan now, it has been confirmed at my friend's bank this afternoon. The only thing is that the loan was obviously paid off weeks later than expected that the balance changed due to the interest on the loan. Meaning, my friend ended up getting less of a refund for the payments he continued to make on the loan while this was all happening. In addition, there was a $30 admin fee through the bank that was charged for paying off the loan...which makes no sense. At this point I feel like there is no point of trying to hound the dealership now to pay back the additional interest that accumulated (roughly $50-60) as I'm sure they would delay payment or make excuses. Just a nice complaint through OMVIC would suffice as I checked my friend's purchase agreement and it shows that the dealership did not abide by OMVIC rules for "all in pricing" |
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01-16-2016, 06:54 PM | #20 |
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01-16-2016, 08:36 PM | #21 |
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01-18-2016, 10:21 AM | #22 |
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I'm glad it eventually worked out in the end! (though not perfect, at least avoided even bigger headaches). GL on the complaint.
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