Car Dealership Didn't Collect my Downpayment

[hotbuckeyechick]

So I have kind of a weird situation... I just bought a nearly new car from a dealership.. it's the first loan since my bankruptcy, so I had to go with a high interest rate with Consumer Portfolio Services. Well, I was supposed to pay a $1000 downpayment to the dealership. Well, after everything was signed and the car was given to me, no one ever collected my down payment (I didn't offer it either... long story, was upset at the salesman, he wasn't very nice!). Well, they were originally going to let me write them 2 checks for the dp, they would cash one right away and the other in 30 days, but I guess that they have to tell the finance company that I paid $1000 cash up front because the finance company doesn't like the dp to be spread out like that. Well, I have a message from my salesman saying "when the finance company calls you to confirm your info, make sure you tell them that you paid $1000 cash and that we're not holding any checks from you". I've had my car over a month and a half and still no call for the dp. I have a friend who bought a car a month before me and he wasn't asked for his downpayment either.

 

Now my question is has anyone heard of this happening or had it happen to them?? I'm wondering if I may not have to pay it.... My fiance keeps saying to send it in because if not they'll repo my car, but they can't! It's not their car, it's the fiance company's car, and as far as they know, I paid the dp, so it's not like the dealership can call and say "we lied, she didn't pay the dp, can we have the car back"....

[pryan67]

moving this to the auto forum

[hotbuckeyechick]

Sorry!

[NoelleNoelle]

hi Hotbuck...mine did the same thing...i bought from this lil dive, that only had nice cars. I honestly wouldn't have minded driving off in any of the cars they had. I was supposed to pay an 800 deposit. I only had 200 cash on me at the time. They told me pay them back next month...and the same thing about the deposit to the finance guys when they call. All the paperwork showed the full deposit paid. Very odd...I don't know the legalities of it, but I never heard from them again about it and I didn't call them either. Just my experience nothing more. A coworker of mine said some of the shadier places do this...cuz as soon as they get the banks money they're good and pleased. I don't know if that is true or not. Sucks though cuz the car was repoed a couple years later, but for not paying the bastards at UACC.

[hotbuckeyechick]

You know that's what I was thinking too. I mean, don't get me wrong, I'm not trying to rip them off (well, anymore than they rip me off), but what if i didn't pay, I mean, they really don't have a leg to stand on... it's not like they can send me a bill or anything...

[NoelleNoelle]

You know that's what I was thinking too. I mean, don't get me wrong, I'm not trying to rip them off (well, anymore than they rip me off), but what if i didn't pay, I mean, they really don't have a leg to stand on... it's not like they can send me a bill or anything...

 

 

I imagine you are right...hopefully one of the car guys on the board will chime in on this one too.

[mk_378]

It's the dealer's loss if they don't collect the down payment, the finance company doesn't get the down payment money. The dealer keeps it and gets paid less from the finance company than if there was no down. You have papers showing it was paid, and if the dealer doesn't say anything more about it you certainly don't have to pay it.

 

Both you and the dealer are lying to the finance company saying a down was paid when it wasn't. The finance company often specifies that a cash down payment be part of the deal because that shows better creditworthiness of the buyer. Someone who can save up some cash to pay down towards a car is probably more financially responsible than someone who can't. So if they find out about this scheme, they'll likely refuse to fund the deal, and then the dealer will of course want the car back.

[hotbuckeyechick]

Well, this company must do it more often than not because I have a friend who had the same thing happen. I'm sure that the finance company can't cancel the deal now because it's already tagged and the dealership is paid, etc. I don't think there's a way to "refuse the deal" now... And it's not like I didn't have the downpayment... heck, it's still sitting in my checking account! I just don't want to do their work for them and offer it... they were really shiesty about the sale anyways and my salesman was not nice!!

[SCFireFighter]

For however long as they'll let you keep the money, (or if you decide to keep it period), put it away in an ING or HSBC savings accoun and forget it exists.

[hotbuckeyechick]

For however long as they'll let you keep the money, (or if you decide to keep it period), put it away in an ING or HSBC savings accoun and forget it exists.

 

 

Great Idea!! I will check into that!

[Dennine34]

For however long as they'll let you keep the money, (or if you decide to keep it period), put it away in an ING or HSBC savings accoun and forget it exists.

 

 

 

 

 

We had a similar event happened, But We paid our required $1000 down. The Dealer lied to the credit union and said we put $1500 down. And asked us to lie as well if they asked. We have signed al the papers and even sent of our first car payment. Now out of the blue someone from the dealership is calling and asking us for the $500 dollars we never agreed to pay in the first place and the Salesman who was one of the managers who set up this deal made it clear that they didn't expect anymore then the $1000 dollars from us.

 

Can they repo since they are asking for it???

[hotbuckeyechick]

No way I don't see how the can repo it... the car does not belong to them, it belongs to the finance company.

[Dennine34]

No way I don't see how the can repo it... the car does not belong to them, it belongs to the finance company.

 

 

 

That's what we thought, I wonder why some dealerships are so underhanded and sneaky. Thanks for your help

[PsRumors]

Back in '93 I purchased a foreclosure from Fleet Finance. I gave them $5000 in ernest money which was to apply towards the purchase price at closing. It took about 5 weeks to close, the whole time my check for ernest money was never cashed. They were also financing the piece of property. We closed and all paperwork was in order and numbers were correct showed my ernest money and all.

 

I figured once we closed that check would get cashed. Never did. 6 months after closing the check came in the mail. I called THEIR closing attorney, he said send him the check and he would have it taken care of. 6 weeks late I received the same check AGIAN.

 

Never did hear from Fleet after that. I sold the property 8 months later for a $10,000 profit on paper but with the $5k extra was really $15,000. All on a $37,000 note. Wish I could make more deals like that.

[hotbuckeyechick]

I just can't believe this type of thing happens so often... I thought I was the only one! I'm hoping they are just happy with the $$ from the bank... I mean, if they send me a bill or anything like that, then they'll be at risk for getting in trouble with the financing companies they deal with, which would cause them to lose money on high risk customers....

[MarvBear]

To answer the original poster's question.

 

As a dealer, I would simply put a second lien on the vehicle if you did not pay the down payment.

[SCFireFighter]

To answer the original poster's question.

 

As a dealer, I would simply put a second lien on the vehicle if you did not pay the down payment.

But Marv, in the situations cited above there is no paperwork that backs the downpayment, or the additional $500 or whatever amount that was. It was part of a fraudulent scheme to lie to the financing company in order to get financing. I think they would have a hard time proving anything.

[hotbuckeyechick]

That's right... according to all of my paperwork, I paid them $1000 cash. The told the financing company that I paid them $1000 cash, and they left me a message saying I paid them. I would think if they tried to collect now, they would risk losing their relationship with the lenders, which would cause a major $$ loss..

[mixer99]

Even if this is not a question of legality...It is a question of morality. If you are to have paid $1000 to the dealership for the downpayment on the car, then you should honor your obligation and pay it. This forum is for folks to help rebuild and maintain their credit and other credit related chat, and we help anyone from the 350 credit score all the way to the super elite 800 folks. I don't think you will ever hear anyone advocate not paying their debt or obligation. Just go to the dealership, talk to the GM and explain there was a mixup, and pay it. You will feel better in the morning, I promise!

[hotbuckeyechick]

So you're telling me I should feel bad, when I was treated like an salamander because I'm a woman.. my salesman actually walked away because he thought I was being too difficult because I was wanting to know what the asking price of the car was and what interest rate they were figuring my payments on (as opposed to just showing me what the payments would be and wanting me to accept that)... the salesman walks away mumbling under his breath "what a b$%@#" amongst other things... so I go to the GM and he says "well, he's pretty new and is just frusterated and trying to do his job. When customers ask too many questions that the salespeople don't know, they make it hard for them to do their jobs".... The only reason I went with this place is because they could get me the financing and I HAD to get a car... so you're saying I should feel guilty that they aren't doing their job?? I should feel guilty and do it for them?? I found, by searching the VIN number online, that they purchased the car from another dealer for $3,000 less than I paid for it.... but you want me to call them and ask them why they aren't asking for my money? Sorry, but I can't feel guilty about that. At the cash register if they ring your item up wrong, do you correct them and say "I'm sorry but I think I owe you more money than that"???

[MarvBear]

I have no intentions of moderating either ethics or morals.

 

My only comment was to answer the original poster.

 

If the downpayment was not forthcoming from the buyer of the vehicle, I would put a 2nd lien on the vehicle. One way or another I would get what is owed to me.

[hotbuckeyechick]

Well, anyways, I would give the $$ to them if they called or asked for it. I was asking this question to find out basically why they haven't called and if it had happened to anyone else. Thanks for your replies!

[Dennine34]

Well, anyways, I would give the $$ to them if they called or asked for it. I was asking this question to find out basically why they haven't called and if it had happened to anyone else. Thanks for your replies!

 

 

I don't owe anyone anything, The dealer lied to the credit union and knew we were only putting down $1000 dollars. He told them $1500 and then told us to lie too. And said he didn't expect anymore money from us.It was just to get it Financed. Then they call us a month later and ask for the extra $500. That is not right and I will give them back their car. We never agreed to pay that. We will be going there today and if they still say we owe them. I am going to call the Credit union and tell them the whole thing.!!! People really should know a situation before saying stuff like nobody wants to pay. Dealerships should get their crap together before selling a car and make sure it is all legal. Not intended for Marv. I know you were just giving an example of what you would do if someone owed you.

[hoapres]

Well, anyways, I would give the $$ to them if they called or asked for it. I was asking this question to find out basically why they haven't called and if it had happened to anyone else. Thanks for your replies!

 

 

I don't owe anyone anything, The dealer lied to the credit union and knew we were only putting down $1000 dollars. He told them $1500 and then told us to lie too. And said he didn't expect anymore money from us.It was just to get it Financed. Then they call us a month later and ask for the extra $500. That is not right and I will give them back their car. We never agreed to pay that. We will be going there today and if they still say we owe them. I am going to call the Credit union and tell them the whole thing.!!! People really should know a situation before saying stuff like nobody wants to pay. Dealerships should get their crap together before selling a car and make sure it is all legal. Not intended for Marv. I know you were just giving an example of what you would do if someone owed you.

 

 

An allowance buy using a non-existent trade ??

 

i..e. You buy a car for $15,000 and have for argument sake a worthless tradein but the dealer sells you the new car for $18,000 and allows you - i.e. gives - $3,000 for your tradein making the sales price being $15,000

 

While this has no effect on the purchaser, it may make loan approval easier as the lender believes that a downpayment via a tradein was provided.

 

In OP's case the price of the car was simply bumped up using a non-existent downpayment ??

 

 

[Leeware]

Well, anyways, I would give the $$ to them if they called or asked for it. I was asking this question to find out basically why they haven't called and if it had happened to anyone else. Thanks for your replies!

 

My father has worked for various dealerships for the past 24 years and I will guarantee you that your downpayment was worked into your finance contract somehow. If I were you, I'd look for either a padded cost for the vehicle, extra service contracts from the dealer (which won't amount to a hill of beans) or some other innocent looking charge. Thats where your downpayment is, I bet money on it! ESPECIALLY since you had to go with a subprime lender. Salesperson probably made you feel like he was doing you a favor.