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  1. #1
    Join Date
    Mar 2014
    Posts
    10

    Default Dealer is Reducing the Value of a Trade-In Due to the Need for Repairs

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


    I bought a car at Honda on feb 9, 2014 with a trade in of 2007 Mercedes c230. I told the salesman that I did not bring the trade in because it's stuck in the snow from Saturday night but the salesperson said it's ok and just bring it next day. I signed the contract and everything that day. Next day come, I can't start the Mercedes so I called the salesman to let him know that I can't start it. I don't know what had happened to the car. I thought it was too cold from the snow. I asked someone to come take a look at it for me but they can't do it until after 5pm after they get off work. I ask the salesman if I can bring the new car back and cancel the deal because I can't start the 2007 Mercedes. The salesman told me it's ok, it's probably an alternator. He told me to towed it to the dealer anyways. And that's exactly what I did. Later that evening, February 10, 2014, the salesman called me to go in and resign the contract for a better deal so I did. The sales manager called me on Friday February 28, 2014 and say that I have to pay extra because cost of fix on Mercedes is $5500 for the engine or I have to return the new car. I went to talk to them on Saturday afternoon March 1, 2014. I asked them why it took them so long to called and tell me this. I told the manager that the salesman knew everything and he still tell me to towed it in. They want me to pay $$4000 but I did not agreed. They tried to ask me to add to the loans and resign the contract but I said no. I want to come home and think about it. I'm suppose to talk to them again today. What is my right for this situations? Please help.....

  2. #2
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: Dealer Want Me to Pay Xtra Money to Fix Trade in After Over 2 Wks of Contract Sig

    It does not appear likely your contract bound them to a trade amount sight unseen. I suggest you review it.

  3. #3
    Join Date
    Jun 2013
    Posts
    551

    Default Re: Repairs

    What does your sales contract say about the Mercedes, does it describe what condition it was to be in when you traded it in? If the trade in was supposed to be running and in good condition and you instead gave them a car that wasn't running then you didn't fulfill your end of the contract. Even if this is the case you are in a great position to negotiate, especially if you put a significant number of miles on the car in the last month.

  4. #4
    Join Date
    Mar 2014
    Posts
    10

    Angry Re: Repairs

    Quote Quoting brownj12
    View Post
    What does your sales contract say about the Mercedes, does it describe what condition it was to be in when you traded it in? If the trade in was supposed to be running and in good condition and you instead gave them a car that wasn't running then you didn't fulfill your end of the contract. Even if this is the case you are in a great position to negotiate, especially if you put a significant number of miles on the car in the last month.
    It was in a good condition, I drove it to work on Saturday and went grocery shopping afterwards February 8, 2014. Then later that evening it snowed hard so I did not drive the car the whole night and the next day. I went to the gym and drove by Honda Dealer just to check it out cause i been shopping around. I went to BMW dealer with the Mercedes a week before that and the BMW dealer gave me $8000 for the trade after they test drive it and everything. It shows that the bank for Mercedes is paid off already. If I return the new car, Honda told me I have to pay for diagnostic and tow of Mercedes they towed to a mechanic and that would be deducted out from my $2500 down payment before they give me my down payment back. If I keep the deal and negotiate with them they want me to come up with $4000 in 45 days and I don't have that because I even have to stretch my down payments already and 1st payment is coming up. What I don't understand is why it took them that long to contact me about the engine and how do I really know what had really happen to it between those 2 weeks.

  5. #5
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Repairs

    Quote Quoting noyyy
    View Post
    What I don't understand is why it took them that long to contact me about the engine and how do I really know what had really happen to it between those 2 weeks.
    The only people who can explain that to you work for the dealership.

  6. #6
    Join Date
    Mar 2014
    Posts
    10

    Angry Re: Repairs

    In the contract it did not say anything about the condition of Mercedes. it just state the amount trade, payoff, and carryover from old loan



    on the contract it just said:

    1.vehicle sale price: 18200
    sales tax: 1048
    service fee: 150
    =19398

    2. Down Payment=2007 Mercedes c230

    Gross trade-in allowance: 7500
    Less Payoff Made By Seller: 15871
    Equals Net Trade In: 8371
    Cash: 3000
    (If total down payment is negative, enter "0" and see h4) ***Did not understand this one they had "0" there

    3. Unpaid Balance of Cash Price (1 minus 2): $19398

    4f. Government Certificate of Titles Fee: $230
    g. Government license and registration fee: $9
    Total: $239

    h. Other Charges(seller must identify who is paid and describe purpose)
    Capitol One: $5371
    Total other charges and amounts paid to others on your behalf: $5610 = ($239+$5610)
    Amount Financed shows (#3 + #4): $25009???

    IT SHOULD BE $13,637 NOT $25009 FOR MY AMOUNT FINANCED?

    18200+1048+150=19398
    (vehicle sale price + sale tax + Documentary service fee=Total cash Sale Price
    19398-8371-3000 +5610=13,637
    Total cash sale price - trade-in value - down payment + carry over from Mercedes= Total Amount Financed

    Did I calculate that right?

  7. #7
    Join Date
    Jun 2013
    Posts
    551

    Default Re: Repairs

    Your trade in value is shown there as negative.

    Value of the trade in allowance was $7500, minus the amount you owed that the dealership paid off for you of 15871 equals a net trade in of -8371, plus the 3000 cash equals negative 5371. basically your car loan that they paid off was for $8371 more than what they gave you for the trade in.

  8. #8
    Join Date
    Mar 2014
    Posts
    10

    Default Re: Repairs

    Quote Quoting brownj12
    View Post
    Your trade in value is shown there as negative.

    Value of the trade in allowance was $7500, minus the amount you owed that the dealership paid off for you of 15871 equals a net trade in of -8371, plus the 3000 cash equals negative 5371. basically your car loan that they paid off was for $8371 more than what they gave you for the trade in.
    They told me that value of Mercedes is 8371 and 7500 is what will be carry over to the new loan. So this means that I'm not getting what they told me what should be getting?

    18200-7500-3000=7700
    sale price - trade in - down payment = total
    7700+8371=$16071
    total + carryover=total finance

    Amount financed should be 16071 instead of $25,09 correct?
    so even if they were to give me the 7500 trade in, they still over charged me. Am I understand this right? thank you for your time on helping to understand this.

    - - - Updated - - -

    It did not say anything to condition of trade in. it just give numbers on contract seems like im being charged more than I should be.... thanks in advance.

    - - - Updated - - -

    Quote Quoting Disagreeable
    View Post
    It does not appear likely your contract bound them to a trade amount sight unseen. I suggest you review it.

    It did not say anything to condition of trade in. it just give numbers on contract seems like im being charged more than I should be.... thanks in advance.

  9. #9
    Join Date
    Jun 2013
    Posts
    551

    Default Re: Repairs

    Quote Quoting noyyy
    View Post
    They told me that value of Mercedes is 8371 and 7500 is what will be carry over to the new loan. So this means that I'm not getting what they told me what should be getting?

    18200-7500-3000=7700
    sale price - trade in - down payment = total
    7700+8371=$16071
    total + carryover=total finance

    Amount financed should be 16071 instead of $25,09 correct?
    so even if they were to give me the 7500 trade in, they still over charged me. Am I understand this right? thank you for your time on helping to understand this.

    - - - Updated - - -

    It did not say anything to condition of trade in. it just give numbers on contract seems like im being charged more than I should be.... thanks in advance.

    - - - Updated - - -




    It did not say anything to condition of trade in. it just give numbers on contract seems like im being charged more than I should be.... thanks in advance.
    Sales price: 19,398 (tax included)
    Amount left on your Mercedes loan: 15,871
    Trade in value: 7,500
    Cash Down Payment: 3,000
    Other fees: 239

    Sales price + Amount left on loan + othe fees - trade in - cash = amount due
    19398
    +15,871
    +239
    -3000
    -7500
    =25,008

    In your math you are deducting the 7500 twice, you owe 8371 on your car after the trade in.

    They may have told you differently but that is not what the information you posted (and likely the contract you signed) said.

  10. #10
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Repairs

    The contract for purchase of the new vehicle is not the contract governing the terms and value of the trade-in, even if it uses the preliminary figure based upon your representations of the trade-in vehicle's value prior to the dealership's inspection and determination that your representation was incorrect.

    Given that the dealership appears prepared to return the Mercedes, if that's the option you choose, it may be that they're holding off on the payoff of the loan while this shakes out. Have you checked to see if the loan remains outstanding? If the loan hasn't been paid off, more payments will come due.

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