FlexBaud
Light the Fiber
Premium
join:2004-10-06
Pensacola, FL
clubs:
 ·Cox HSI
|  [Help] Dealership Cosigning????
A customer goes into a dealership and gets a used car and the loan amount is for $18,000. A few weeks later, the bank who the loan is supposed to be through mails a letter saying that the loan was not approved and stated that they have a counter-offer for you at $15,000.
On the paper it states that if one agree's to this (by making a larger down payment) to speak to the dealership within 10 days or the loan request will be closed.
The customer calls the bank and the bank states that the dealership has "cosigned" the difference and the loan cannot be cancelled and is active. The customer was never notified by the dealership of this change and never signed a new contract.
Is this possible and/or legal? |
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no_one
@QWEST.NET
| Did all of the terms stay the same? Did you have to put down the $3000.
If the terms stayed the same. Plus you only owe to the bank the previously agreed amount and nothing extra to the bank or dealership I might think it was nice of the dealership.
That is if everything to you out of pocket now and in the future stays the same.
So correct me if wrong instead of you putting down 3000 more the original loan was guaranteed by the dealership to the bank? If that is the case you got a little extra from the dealership and the car you wanted at the same terms??? |
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FlexBaud
Light the Fiber
Premium
join:2004-10-06
Pensacola, FL
clubs:
·Cox HSI
| Huh? Your post just confused me.
No, The letter arrived today from the bank saying that the loan was denied and we would need to pay more of a down payment because they would only fiance X amount of dollars or we would need to take the car back to the dealership.
However, the customer called the bank and the bank said that the dealership "cosigned" the difference and the loan is still active. If so, wouldn't that void the orgional contract and need to sign a new contract stating that the dealership has cosigned on the loan?
This is all very confusing. |
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X Man
Sober
Premium
join:2005-09-05
USA
| said by FlexBaud  :However, the customer called the bank and the bank said that the dealership "cosigned" the difference and the loan is still active. If so, wouldn't that void the orgional contract and need to sign a new contract stating that the dealership has cosigned on the loan? This is all very confusing. You can demand that the deal be called off. They can't force you to put down more than you agreed to by assuming a "note" for you that you never asked for.
Call the dealer and tell them, no dice.
Mike
--
My Photostream.
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no_one
@QWEST.NET
| reply to FlexBaud
I think the dealership may have just been nice and cosigned. Now you do not need the extra down payment.
That was what I was asking. Do not get mad and cancel just yet. Do you still need the extra down or by the dealership cosigning no extra money down is needed and the original loan is approved???? |
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ropeguru
Premium
join:2001-01-25
Hollywood, FL
clubs:
| reply to FlexBaud
This sounds like to me that the dealership is desperate to offload their inventory. They probably received word that the loan was denied and offered to cosign.
I am assuming from what is written that there was no other down payment needed as it will be the dealership's responsibility for the loan if the buyer does not pay. Just as when a parent cosigns for a child when they don't have their credit built up. |
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FlexBaud
Light the Fiber
Premium
join:2004-10-06
Pensacola, FL
clubs:
·Cox HSI
edit:
July 8th, @03:47AM
| reply to FlexBaud
Well,
This dealership has been nothing but nightmares.
First, they did not give a copy of the contract at signing. Second, $2000 was put down and at signing, it was agree'd that they would wait 30 day's to cash the 2nd check. Got a phone call saying they needed the check sooner. Told them this was not possible and they could have the car back... they agree'd to wait until the orgional date.
Several days later, went to use debit card and it would not work. Checked checking account and noticed they cashed BOTH checks and had $600 in overdraft fee's. Went to dealership and they offered to pay the $600 overdraft fee's, but did not want to give the 2nd check back until orgional date. After lots of yelling at the dealership, they agree'd to give back the check and to give a copy of the contract to customer.
Customer then asked for a letter to be typed stating that this was a error on THEIR part for the customers bank to keep the account in good standing as the account was put on hold due to all of this. The dealership printed the name of the customer wrong on the paper and customer spent 15 minutes telling them their name.
Not to mention, the customer was told that GAP and extended insurance was required (by the bank) and would be added at no extra charge but after getting a copy of the contract 3 weeks later, noticed they charged $2500 for these.
The dealership is NOT listed as "buyer 2" on the contract so I don't see how they were able to "cosign"
Either way, this has been a nightmare from hell.... It's just about time to see a lawyer. |
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BurntCricket
Gotta Do What Ya Gotta Do
Premium
join:2000-09-02
Here
clubs:
·RoadRunner Cable
| reply to FlexBaud
Well to me it sounds like some funny business going on here, from my experience in this(mine and others), the loan is either approved or not and the terms are printed out BEFORE you leave the dealership, you NEVER leave with the vehicle without the loan being approved, we did leave with our truck without paying them a dime but purchase and loan contracts were signed.
The truth in lending laws require them to supply the person with a copy of the contract, and make it available before signing with all information entered in the contract and review with the customer everything entered.
--
If you have to ask, you wouldn't understand. |
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FlexBaud
Light the Fiber
Premium
join:2004-10-06
Pensacola, FL
clubs: | reply to FlexBaud
Yeah. This has been a bloody nightmare from hell. At this point, don't even want the damn car anymore. |
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no_one
@QWEST.NET
| reply to FlexBaud
They are not a buyer just a cosigner so have no interest in the car. They are not co-buying the car just guaranteeing the loan with the bank if you default and the bank can not collect from you.
From what has been said and how it has been said and semi lack of knowledge sounds as if someone may be trying to buy to much vehicle. Living beyond their means. May be wrong just a guess. |
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NS4683
join:2000-08-25
South Amboy, NJ
| said by no_one :
They are not a buyer just a cosigner so have no interest in the car. They are not co-buying the car just guaranteeing the loan with the bank if you default and the bank can not collect from you.
From what has been said and how it has been said and semi lack of knowledge sounds as if someone may be trying to buy to much vehicle. Living beyond their means. May be wrong just a guess.
Agreed. It also seems like "customer" (you perhaps?) wrote checks knowing they did not have funds available. That's illegal, too. |
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Hall
Premium,MVM
join:2000-04-28
Dayton, OH
| said by NS4683 : It also seems like "customer" (you perhaps?) wrote checks knowing they did not have funds available. That's illegal, too. Is it illegal to have an agreement between the parties not to cash a check until an agreed upon date ? Don't think so... This person knew they didn't have the funds at the time it was written but would have it at a later date. |
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Hall
Premium,MVM
join:2000-04-28
Dayton, OH
| reply to FlexBaud
said by FlexBaud : * First, they did not give a copy of the contract at signing. * ...it was agree'd that they would wait 30 day's to cash the 2nd check. * Got a phone call saying they needed the check sooner. Told them this was not possible and they could have the car back... * ...they cashed BOTH checks and had $600 in overdraft fee's. * ...did not want to give the 2nd check back until orgional date. * The dealership printed the name of the customer wrong on the paper and customer spent 15 minutes telling them their name. * ...the customer was told that GAP and extended insurance was required (by the bank) * ...and would be added at no extra charge but after getting a copy of the contract 3 weeks later, noticed they charged $2500 for these. Sounds like a fine, upstanding, and honest dealership there !!  |
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CatSnak
Stick A Fork In Me, I'm Done
Premium
join:2001-05-06
Lakeside, CA
| reply to Hall
said by Hall :said by NS4683 : It also seems like "customer" (you perhaps?) wrote checks knowing they did not have funds available. That's illegal, too. Is it illegal to have an agreement between the parties not to cash a check until an agreed upon date ? Don't think so... This person knew they didn't have the funds at the time it was written but would have it at a later date. Doesn't matter it's still illegal. To put it in the simplest terms possible it doesn't matter what kind of agreement you make, once you put the pen to the check and you do not have the funds to cover said check you are breaking the law.
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Founding member, 2002-2003, 2005-2006 Director of Communications, 2004-2005 Secretary for the Crunchenstein Project |
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FlexBaud
Light the Fiber
Premium
join:2004-10-06
Pensacola, FL
clubs:
·Cox HSI
| said by CatSnak :said by Hall :said by NS4683 : It also seems like "customer" (you perhaps?) wrote checks knowing they did not have funds available. That's illegal, too. Is it illegal to have an agreement between the parties not to cash a check until an agreed upon date ? Don't think so... This person knew they didn't have the funds at the time it was written but would have it at a later date. Doesn't matter it's still illegal. To put it in the simplest terms possible it doesn't matter what kind of agreement you make, once you put the pen to the check and you do not have the funds to cover said check you are breaking the law. We have done this many times in the past at other dealerships without any issues. They just would not allow us to post-date the checks, but agree'd not to cash them until the date agreed upon.
Besides, there was enough money in the checking account to cover both checks (less $50 or so) but that money was reserved for bills so when all the bills started coming out of the checking account, overdraft fee's were assessed.
FYI. This isn't my car. It's my mom's.
The letter from the bank also clearly states that we have 10 days to return the car or to renegotite the contract with the dealership, but the way this place has been, I have a feeling they are going to give us hell as they already sold the trade in. Idiots. |
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FlexBaud
Light the Fiber
Premium
join:2004-10-06
Pensacola, FL
clubs:
·Cox HSI
| reply to FlexBaud
Either way, I've had my own share of problems with dealerships... but nothing like this.
After seeing my mom go through all this, it's really made me decide not to go to dealerships anymore and just pay cash for used cars.
My grandparents drive a 1993 Buick and they have had it for 10 years and only paid $4000 for it... they've taken many many long road trips in that thing without any major problems. They were going to get a new car in a few months, but after hearing about this as well as other family member issues, they have decided to keep their existing car.
I tell ya, I am never going to another dealership. I'd rather pay little repair bills here and there than go through all this stress. They are nothing but scams. |
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3SGTE
ST215W
Premium,MVM
join:2000-11-23
there
clubs:
| I would say that a very large share of the blame rests upon your shoulders.
That is a lot of "creative" financing that you tried to get them to do.
Leaving without a contract? What?
If you are half as confusing in person as you are here, then it is easy to see where the problem is.
Here is another thread if anyone needs a little more perspective:
»Opinion... should I trade?
Is this the Escape replacement?
--
I can stand brute force, but brute reason is quite unbearable. There is something unfair about its use. It is hitting below the intellect. |
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FlexBaud
Light the Fiber
Premium
join:2004-10-06
Pensacola, FL
clubs:
·Cox HSI
| said by 3SGTE :I would say that a very large share of the blame rests upon your shoulders. That is a lot of "creative" financing that you tried to get them to do. Leaving without a contract? What? If you are half as confusing in person as you are here, then it is easy to see where the problem is. Here is another thread if anyone needs a little more perspective: » Opinion... should I trade?Is this the Escape replacement? If you can read, you'll clearly see that I said this is NOT mine, this is my moms car. I still have the escape. I was not there at signing, only my mom was. |
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3SGTE
ST215W
Premium,MVM
join:2000-11-23
there
clubs:
| Throughout this thread you were switching between first and third person.
At times I even wondered if it was hypothetical.
To help you avoid problems like this in the future, you should probably work on your communication skills.
Good luck.
--
I can stand brute force, but brute reason is quite unbearable. There is something unfair about its use. It is hitting below the intellect. |
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mattmag
Premium,ExMod 2000-03
join:2000-04-09
NW Illinois
clubs:
·Mediacom
| reply to 3SGTE
said by 3SGTE :If you are half as confusing in person as you are here, then it is easy to see where the problem is. Aww, take it easy on him man! They're just getting in as deep as possible so they can file bankruptcy....again.  |
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