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  1. #1
    Join Date
    Dec 2008
    Posts
    9

    Question Bought New Car, but Dealer Didn't Pay Off Trade-In

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

    I recently traded in a Mercedes for a Jaguar. The Mercedes had an $18,000 balance on the loan. The dealer gave us a trade in value of $14,000 for the Mercedes tacking the difference onto the Jag loan. The finance company for the Merc called me a month and a half after the sale and said that my payment was overdue and in 4 days the account will be delinquent and will effect my credit. I called the dealer they said they sent check a week ago.

    Question:
    1. If I am still liable to the Merc finance company, (I assume I am.. they didn't trade the car) and the dealer doesn't pay the payoff, can I just pick up the car? and get the $4000 difference back that they tacked on the loan for the Merc?
    2. Assuming dealer did send payoff and it gets there too late. If I pay the finance company another payment in order to save credit, can I go after the dealer for that amount?
    3. Assuming dealer did send payoff and it gets there too late. Credit gets scuffed. Do I have recourse and can my demerit be cleansed?


  2. #2
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: Bought New Car, but Dealer Didn't Pay Off Trade-In

    Quote Quoting KruBruder
    View Post
    My question involves a consumer law issue in the State of: Tennessee

    I recently traded in a Mercedes for a Jaguar. The Mercedes had an $18,000 balance on the loan. The dealer gave us a trade in value of $14,000 for the Mercedes tacking the difference onto the Jag loan. The finance company for the Merc called me a month and a half after the sale and said that my payment was overdue and in 4 days the account will be delinquent and will effect my credit. I called the dealer they said they sent check a week ago.

    Question:
    1. If I am still liable to the Merc finance company, (I assume I am.. they didn't trade the car) and the dealer doesn't pay the payoff, can I just pick up the car? and get the $4000 difference back that they tacked on the loan for the Merc?
    2. Assuming dealer did send payoff and it gets there too late. If I pay the finance company another payment in order to save credit, can I go after the dealer for that amount?
    3. Assuming dealer did send payoff and it gets there too late. Credit gets scuffed. Do I have recourse and can my demerit be cleansed?

    The first thing you need to do is contat the TN DMV dealer division.

    They will open an investigation.

    In TN the dealer is required to pay off your trade in within 14 days.

    In order to keep your credit in good standing you may have to make a payment on the old loan and get the refund back from the lender once the dealers check arrives, if it arrives.

    Here is a link for you to contact the TN DMV

    http://state.tn.us/revenue/vehicle/

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