Car Trade-in Payoff

[Mhudson]

My question involves a consumer law issue in the State of: California


I traded in a car that I've owned for a few weeks for a new car at one dealership, with a remaining balance (approx. a few thousand dollars) last thursday. So the dealership appraised my trade-in and deduct this remaining balance from the trade-in value, telling me that they'll take over the loan. Should I receive any proof of loan transfer other than the pink copy of release of liability to the dealership (with the dealership being the buyer stating the purchase amount before the balance deduction)?

Based on this release of liability, will the dealership make the pay-off amount for my trade-in in a timely fashion? Are they required to do so?

What legal safeguards do I have to ensure that they pay the pay-off amount in a timely fashion - even though they are a high-end dealership?

I offered to first pay off my remaining amount before we went ahead with the transaction; but they said they would take care of it. Today,when I checked my account, the balance for the trade-in car is still there, so I am a little concern if they could delay the payment, which would in turn damage my credit score. Or am I off the hook once the release of liability is signed? Since I've already made the last payment (for two full months), the next payment is not due until 6th of june. Please advise.

[Mhudson]

bump for answers?
Thank you.

[Mr. Knowitall]

Why do people find it difficult to follow an explicit, bold-faced instruction not to post the first response to their own thread?

(a) When a dealer purchases or obtains a vehicle in trade in a retail sale or lease transaction and the vehicle is subject to a prior credit or lease balance, all of the following apply:

(1) If the dealer agreed to pay a specified amount on the prior credit or lease balance owing on the vehicle purchased or obtained in trade, and the agreement to pay the specified amount is contained in a written agreement documenting the transaction, the dealer shall tender the agreed upon amount as provided in the written agreement to the lessor registered in accordance with Section 4453.5, or to the legal owner reflected on the ownership certificate, or to the designee of that lessor or legal owner of the vehicle purchased or obtained in trade within 21 calendar days of purchasing or obtaining the vehicle in trade.

(2) If the dealer did not set forth an agreement regarding payment of a prior credit or lease balance owed on the vehicle purchased or obtained in trade, in a written agreement documenting the transaction, the dealer shall tender to the lessor registered in accordance with Section 4453.5, or to the legal owner reflected on the ownership certificate, or to the designee of that lessor or legal owner of the vehicle purchased or obtained in trade, an amount necessary to discharge the prior credit or lease balance owing on the vehicle purchased or obtained in trade within 21 calendar days of purchasing or obtaining the vehicle in trade.

(3) The time period specified in paragraph (1) or (2) may be shortened if the dealer and consumer agree, in writing, to a shorter time period. (4) A dealer shall not sell, consign for sale, or transfer any ownership interest in the vehicle purchased or obtained in trade until an amount necessary to discharge the prior credit or lease balance owing on the vehicle has been tendered to the lessor registered in accordance with Section 4453.5, or to the legal owner reflected on the ownership certificate, or to the designee of that lessor or legal owner of the vehicle purchased or obtained in trade.

(b) A dealer does not violate this section if the dealer reasonably and in good faith gives notice of rescission of the contract promptly, but no later than 21 days after the date on which the vehicle was purchased or obtained in trade, and the contract is thereafter rescinded on any of the grounds in Section 1689 of the Civil Code.

[Mhudson]

Why do people find it difficult to follow an explicit, bold-faced instruction not to post the first response to their own thread?

My apology for not following the instruction. Would the purchase agreement be a form of written agreement where under the section of prior credit or lease balance the my pay off balance is listed (which is then deducted from the trade-in value to reflect the true trade-in value)? Besides this and the release of liability (which indicates the amount of trade-in value before the pay off), I did not receive any other agreement that pertains to the pay off. Is it safe to say I am okay? Again, my apology for not following the forum rule.