Something CRAZY happened with me and my car dealership...help.

[DancingQueen1977]

I traded in a car in July and bought a new one. I have a loan with my local credit union. My credit union sent me a statement (they only send them every 4 months) and it says that I still have TWO CAR LOANS!

So, the dealership NEVER sent a check to the credit union to pay off the loan in full for the car that I traded in. WHAT?

Furthermore, the car loan (for a car that I don't have anymore) is delinquent because I have only been making payments on the car loan for the car that I actually DO have (the new one that I bought after I traded the old one in).

Confused yet?

I called the car dealership and they apologized for the mistake. They are going to send a check to the credit union and are offering me $375 more for any late fees/interest payments I accrued.

What the hell? I asked for a flat $500 (saying that $375 was not sufficient). She lady said she had to call the manager to authorize it. He called me back and thinks I am being unreasonable. Am I?

THIS IS INSANE!

$500 is a small price for them to pay for the horrible mistake they made.

My main concern was the possibility that the delinquent loan would show up on my credit report. After speaking to my credit union about this, they said that they will not be reporting anything until the end of November, and if this situation is not resolved, they will have me pay and interest only payment so that the loan is in good standing.

Is there anything different I should do to resolve this? Do you think I should just take the $375 and call it a day? I am not going to spend weeks fighting over the fact that I didn't get $500 obviously...I just wanted to see what you all would do...

Thanks for listening.

[disneysteve]

What is the amount of your actual fees? The dealership should reimburse you that amount. I see no reason why they should give you more than that. You should walk away even with your credit report clean.

[DancingQueen1977]

I guess I expected more for the inconvenience. Maybe I am just being greedy...I don't have my statement with me - but I know the interest amounts to approximately $400.

The fact that I bought the car over three months ago and they still haven't sent a pay off check OR the title for the new vehicle to my credit union makes me unbelievable upset.

This is also the 6th car that my family has bought from this dealership...and we have referred 5 friends to them who have also bought cars. I can say that overall, I'm deeply offended by it all...and feel like they just don't care. Needless to say, I will not be buying another car there nor will I send anyone there ever again.

Thankfully, this should be the last car loan I have. I'm paying cash from now on.

[minnie1928]

I agree with Steve. You should show them the actual fees/interest on the old loan. In fact, ask the credit union to provide you with a new payoff amount and then forward that to the dealership. Beyond what the actual fees are, I don't think you should expect anything else.

[cypher1]

I guess I expected more for the inconvenience. Maybe I am just being greedy...I don't have my statement with me - but I know the interest amounts to approximately $400.

Thankfully, this should be the last car loan I have. I'm paying cash from now on.

I agree with others, don't be greedy. Just get them to pay every cent of fees owed. And the CU gave you a window to work with without impacting your credit report, so the sooner for peace of mind. A stupid mistake on their end. It happens, but you caught it in time. Paying cash is the way to go whenever possible.

[tulog]

If you sue you would be allowed to recover your general damages, plus any consequential or incidental damages reasonably foreseeable resulting from the breach of contract.

Agree that you need to determine your damages first before deciding what to do. Unfortunately 'inconvenience' and generally 'being offended' are not quantifiable as to money damages. But any monies you spent to investigate the errors, communicate the errors, dispute the errors, or correct or fix the errors, would all be recoverable, plus any fees or interest paid because of the errors. I think if you paid money to investigate your credit report entries, that would also be a reasonably foreseeable expense.

[wincrasher]

You are entitled to get anything out of them that you can. There is also the thing called "emotional distress". I'm sure if the shoe was on the other foot, as they say, they would be socking you with all they could, including their time.

If all you are asking for is $500, including these fees, I'm sure they will want to work it out with you. Just be calm, not hysterical. Don't say you will never buy from them. Just repeat how many cars you've bought and how many referrals you've made over the years. How disappointed you are that they would treat such a good customer so poorly. If they know they've lost you, they aren't really inclined to do right by you.

Sueing is certainly within your rights. But the only people who would profit are the lawyers. Only threaten that as a last resort.

I recommend you send them a letter by certified mail. Include the statement from the credit union.
Reiterate what a great customer you have been and how disappointed with them you are. Demand that they payoff the amount due within 10 days and send you a cashiers check for $x for your trouble.

Then see what the response is. Be reasonable, but firm, and not hysterical. You are VERY lucky that your FICO isn't damaged by this. I'd be happy with just that, and maybe a discount coupon on a future purchase.

Good luck!

[bjl584]

This makes a good case for not rolling over auto loans.

[briandownie]

People make honest mistakes, even car dealerships. As long as they reimburse you for any out of pocket expenses that should satisfy you.

I don't think you should sever your relationship with the dealership either. You've had good service in the past, bought many cars and referred friends and family because of the level of service and I don't think I'd let one problem ruin a good relationship.

Besides, better the devil you know than the one you don't. Who knows what treatment you'll get at the next dealership.

Brian