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  1. #1
    Join Date
    Jun 2011
    Posts
    4

    Default Dealership Sold My Trade-in at Auction Prior to the Loan Being Funded

    My question involves a consumer law issue in the State of:Arizona. My 22 yr old daughter purchased a new car from a new car dealership using a car I owned as a trade-in. 2 months have passed, she has placed 5,600 mi on the new car and has gotten a chip in the windshield. Dealership contacts her and informs that the lender needs an additional $1,700 deposit, which she does not have. So the dealership has refunded her deposit plus the $900 they claim to have received at auction for the trade in, and sent her on her way with no car. The trade-in surely has a market value of more that $900. The dealership states that they will not charge her for time use or miles driven. The check given to her by the dealership is an out of state bank which her bank is sure to place a 10 - 15 day hold before she can get her money to purchase another car, so she'll have to endure the cost of a rental till the check does clear.
    Has a crime been comitted against her by the dealership. Is there leagal action she or I should take. Thanks!

  2. #2
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Dealership Sold My Trade-in at Auction Prior to the Loan Being Funded

    I don't see any crime involved. Any thoughts as to what you see that you believe might be criminal in nature?

    Personally, I would have questioned the additional $1700. It would be odd to have such a requirement 2 months after the initial contract but as I said, it's a bit late to get into that now.

    to the value of the car: no idea what kind of car it is so no idea what the value might be. What she should have had refunded was the amount that was allowed as a trade in value.

    It sounds like things are way to far gone to really do much about this. All the dealings are done and if she has accepted the deconstruction of the deal as it resulted, then she has no argument about it now unless there was fraud or some other similar behavior taking place.

    as to the hold on the check: I don't know how much money is involved or your daughters relationship with her bank. There are laws regarding how long a bank can hold a check but if she has an established account with her bank, the check should be held no more than 11 days but likely less than that if she has a good standing with her bank. She should speak with her bank to get a more accurate idea of how long her bank will hold the funds.

    Basically, I do not see any actions that you should, or even could take at this time.

  3. #3
    Join Date
    Jun 2008
    Posts
    250

    Default Re: Dealership Sold My Trade-in at Auction Prior to the Loan Being Funded

    I wonder what is going on with these dealers asking for money 2 months after they sell a car.. I see more and more complaints of them doing that. I'm curious as whats behind this scam

  4. #4
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Dealership Sold My Trade-in at Auction Prior to the Loan Being Funded

    She would have negotiated a value for the vehicle when she traded it to the dealership - a mutually agreed value of the trade-in. If that was more than $900, I would push for that amount.

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