Bought a car cash from a dealer and traded in my car with a lien left over of $1100 dollars. We agreed after negotiations on buying used car for $23K and they would accept my trade for $5500 leaving $1100 remaining from my payoff. I kept reminding the sales agent, sales manager and financing manager that there was a lien left over and we would be paying it off here on site to completely rid of my old car. They accepted the deal and upon reminding them of the lien Left over, where told don't worry about it we'll take care of it by the sales agent, sales manager and finance manager. Basically begging them to charge us to rid of that old loan. We ended the deal paying all cash for the new used car. Signed all paper work . Got copies of paper work and slapped my old tag on the new one. Drove off. 10 days later they want us to return the car and said if not we owe them $5500. Said the lien on the car won't allow them to get the title. Duh! That's what I was telling them before we finalized the deal. They want to negotiate a finance for the $5500 , I said no. They want me to return the car and give mine back, I said no. Isn't our deal finalized by us paying straight cash for the new car and all papers signed? Isn't the lien their problem now? I'd be happy to pay off what's left on the lien . Not an issue. Plus they charged us private tag fees of $600 and title registration fees of $90, when I already have a tag. I don't think I need to return the vehicle and tell them tough cookies. Just need another vantage point before I lawyer up.
2 Answers
It seems that you expected to pay the $1100 to the dealer, together with the tradein, so they could pay off the loan and have clear title.
If they took your $1100 and didn't pay off the loan, you'd have a valid complaint. But they didn't take your $1100, so you still have it.
What you need to do is use that $1100 which is still in your possession, for the purpose you already earmarked it for: paying off the loan. If you do that in person, you'll get a payoff letter on the spot (insist that the lender gives you this). If you do it electronically, the letter will be delayed in coming. Either way, as soon as the loan is paid off you then call the dealer and tell them, so they can apply for title again.
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I don't see the problem. The dealer will get the title to the trade-in once they pay off the loan. This is the deal both parties originally agreed to. There is no action you need to take on your part other than asking them to send the signed agreement where you previously agreed to finance $5500. If this signed agreement does not exist then all they can do is call and harass you hoping you give in.
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