OtherGround Forums Bought a used car. Contract cancelled issue

6 days ago
1/18/06
Posts: 9512
Hi guys,

PREPARE FOR A FRAT-SIZED WORD VOMIT.

Anyone familiar with consumer protection laws in CA for purchasing cars/obtaining financing?

So here's the situation. I applied for and was approved for financing for a small loan on a used car for my wife. The dealership sent their paperwork over to the lender and I went in to sign the lender contracts. Unfortunately the systems were down and I was unable to sign anything and left. The very next day, Saturday, the dealership calls me up and says they'll spot sale me the car if I provide them my downpayment and finish my loan paperwork on Monday. I agree and go and get the car.

Come Monday (through Thursday) there is a dispute with the lender and they try to add 5% to our agreed upon loan terms, which are already outlined on the RETAIL INSTALLMENT SALE CONTRACT in the Federal Truth-In-Lending disclosures. I refuse and back out of the loan. So I contact the dealer to ask them to find me another lender and they agree. A few hours later they call me back and say I just need to return the car, contracts cancelled. I say that is not a problem but I will need my down payment back before I give up any keys. They agree! So off I go driving almost an hour to get to the dealership to return the car.

So I get there and they ask to check the odometer so I put the key in the ignition and let them record it. The representative then removes the keys from the ignition and says he will not give them back to me and I need to pay $500 for restocking or they will refuse to take the car back. I refuse. The GM comes out and gives me my keys back after I explain to him how fucking ODD that was. But then he tells me I have 7 days to pay the FULL financed amount or he will repossess the car. He says I signed a cash contract and it is DUE in full.

What I signed was a 553-CA-ARB-eps-14 RETAIL INSTALLMENT SALE CONTRACT. How are they calling this a CASH contract? It outlines a payment schedule, APR, financing charge, ALL of that. How in the world can this be considered a cash purchase?

I know that if they repossess the car I have a good case for a wrongful repossession, but I would like to avoid ALL OF THAT shit and just get my down payment back.

Any advise on how I could do that or is it a pipe dream without a court?
6 days ago
1/18/06
Posts: 9513
MOVE TO OG PLZ, my fault!
6 days ago
12/9/13
Posts: 4689

Beats me but that’s just one more story to add to my list of why to never finance a car.

6 days ago
7/15/15
Posts: 6849

Name of dealership?

6 days ago
1/21/14
Posts: 5913

Wow that sounds like some serious BS. Which dealership is this and where is it?

6 days ago
3/13/02
Posts: 11324

WTF kind of dealership is this?

6 days ago
5/15/07
Posts: 15639

Sounds like one of those bullshit dealerships that you see around military bases. Sounds shady as fuck. 

6 days ago
7/2/09
Posts: 7587

Tell them you'll pay the restocking fee after they return your full down payment in the form of a cashier's check, then tell them to fuck off.

6 days ago
4/29/09
Posts: 61552

This in MV or of one of those place on the Blvd? I've been wanting something newer but am afraid of this type of shit. That and the no credit thing... 

6 days ago
10/10/05
Posts: 14017

I assume you have copies of all the paperwork? 

6 days ago
7/31/06
Posts: 2021

Can you go to a bank or credit union, finance with them for the agreed upon cash price????

They give you what I think is called an auto check that you make out to them.

This is how I buy cars..

 

6 days ago
4/20/17
Posts: 2676

Pay in full the financed amount? lol that right there is some used car dealer nonsense. Lawyer up.

Edited: 6 days ago
9/8/02
Posts: 22363

It sounds like you went to a 3rd party lender, who agreed to give you a loan for the car. You were then going to use that money to buy the car from the dealership. Once done, that would clear your responsibility to the dealership, leaving you with a payment with the lender.

If that is the case, the dealership treated it as a cash deal, and any obligation you had left was between yourself and 3rd party lender. 

I could be wrong, but perhaps that is case. 

6 days ago
4/20/17
Posts: 2677

Lawyer up and lock the car in a garage. That is some used car dealer nonsense.

6 days ago
1/18/06
Posts: 9515
It was Mercedes-Benz of Escondido in San Diego. Sorry I've been in meetings since posting this.
6 days ago
1/18/06
Posts: 9516
CryLikeAGoat - 

I assume you have copies of all the paperwork? 


Yes, I have the RETAIL INSTALLMENT SALES CONTRACT and all of that.
6 days ago
2/19/14
Posts: 3877

Can't you just get your own financing on the car? Go to your bank or credit union. 

6 days ago
1/18/06
Posts: 9517
eubie5 - 

Can't you just get your own financing on the car? Go to your bank or credit union. 


Yes but my bank offered me a higher interest rate than the lender I was pursuing.

I don't want to pay more. I want to pay what I agreed to pay.
6 days ago
9/8/11
Posts: 5196

This is why I "never" take the car home until everything is complete. Those fuckers always try to send us home with the ride, transfer our insurance, etc.  I flat out say no. Because shit happens. And its easier to walk away without these issues.

6 days ago
1/1/01
Posts: 27165
Car salesmen are scum. I give them nothing until I decide on the car. You know when they ask to hold your license for the test drive. Then power close you for 4 hours.


Give them some money as proof you want it, then you will never get it back

I had friends that sold cars, he said at the end of the day he would have two or three licenses in his pocket because people got fed up and left without it.

One guy said he closed a lady into a car, then she said no at the last minute. They told her to drive it to the back of the dealership so they can put it back in stock. When all four cars leave the lot it is considered receipt of the car. She drove on the side street to the back and they told her she owned it once it was out of the lot. She was in with a lawyer the next day.
6 days ago
4/22/07
Posts: 63954


5 days ago
6/8/10
Posts: 13994
jcblass -

It sounds like you went to a 3rd party lender, who agreed to give you a loan for the car. You were then going to use that money to buy the car from the dealership. Once done, that would clear your responsibility to the dealership, leaving you with a payment with the lender.

If that is the case, the dealership treated it as a cash deal, and any obligation you had left was between yourself and 3rd party lender. 

I could be wrong, but perhaps that is case. 

This 

5 days ago
1/18/06
Posts: 9521
jasperb - 
jcblass -

It sounds like you went to a 3rd party lender, who agreed to give you a loan for the car. You were then going to use that money to buy the car from the dealership. Once done, that would clear your responsibility to the dealership, leaving you with a payment with the lender.

If that is the case, the dealership treated it as a cash deal, and any obligation you had left was between yourself and 3rd party lender. 

I could be wrong, but perhaps that is case. 

This 


How do you treat it like a cash contract when the contract itself is called a Retail installment sale contract, and it outlines a payment plan, apr, financing, etc?
5 days ago
6/13/15
Posts: 14959
jasperb -
jcblass -

It sounds like you went to a 3rd party lender, who agreed to give you a loan for the car. You were then going to use that money to buy the car from the dealership. Once done, that would clear your responsibility to the dealership, leaving you with a payment with the lender.

If that is the case, the dealership treated it as a cash deal, and any obligation you had left was between yourself and 3rd party lender. 

I could be wrong, but perhaps that is case. 

This 

This is exactly what happened.

5 days ago
1/18/06
Posts: 9523
Never_rolled - 
jasperb -
jcblass -

It sounds like you went to a 3rd party lender, who agreed to give you a loan for the car. You were then going to use that money to buy the car from the dealership. Once done, that would clear your responsibility to the dealership, leaving you with a payment with the lender.

If that is the case, the dealership treated it as a cash deal, and any obligation you had left was between yourself and 3rd party lender. 

I could be wrong, but perhaps that is case. 

This 

This is exactly what happened.


Can you help me reconcile how a retail installment sale contract 553-CA-ARB-eps-14 can be considered a cash deal?