Buying A Truck And Trading In.

[J Francho]

So, he pays the loan off, and still has a 50,900 loan.  So they still got the Fusion for free, if I understand correctly.  He better check the math on this one.  All said and done, the truck cost him 50,900 + interest.

[Fishing Rhino]

Original post.

 

So, he has a fusion that he owed roughly $7400 on.

He bought a truck for $43,500 with Tax and ever other fee included.

They told him they would give him $7400 for the trade in, therefore paying off the existing debt on the fusion.

After everything is said and done, the paper that he signed says the principle amount of money owed on the new loan is $50,900, and the dealer now has the ownership of the fusion.

 

The truck was 43,500 total including all taxes and fees.  That was with his Fusion as a trade in.  I don't know what their title procedure is in Canada, but if it's like here in the states, the lender will have his name on the title as a lienholder.  They will not release the lien until the vehicle is paid for.  That means the dealer cannot sell the car until they can provide a clear title.

 

Let's assume that the title is still in limbo because the lien has not been released.  Yes, the lender can go after the buyer for the 7400, but he can tell them to repo the car which should be at the dealers since it has no clear title to transfer.  I don't know why the dealer would be so foolish as to give him the money, and not get a clear title and be left with a vehicle they cannot sell.

 

Not only must the lender release the loan, but the friend must assign title to the car as well.  It makes no sense that the dealer would not pay it off.

 

So the first lender repos the car.  The friend is stuck with the 50,900 dollar loan, but he can reduce that by the 7400 dollar check. 

 

This leaves the dealer with no car and the 50,900 dollars from the loan.  But since they gave the friend a 7400 dollar check they only net 43,500 and the car is gone.

 

The friend is left with the truck and a balance of 43,500 on his loan, which is what he bargained for.

 

What a nightmare.

[J Francho]

I thought the truck's price was 43,500.  So, you're saying the truck's price is $50,900?  Even so, never mind the hit on your credit rating for the repossession, huh?

 

Buying a car:

 

What's the price?

What are the fees and taxes?

How much am I putting as a down payment?

How much is being financed?

What is the length of loan?

What is the interest?

 

I stay out of the trade in a car not paid for part.  I'll sell that thing on the side, pay off the loan and any extra can go toward the down payment.

 

Anything outside of ti, I walk, and call bs on the dealer.  No surprises, no weird math.

[Fishing Rhino]

I thought the price was 43,500 dollars, and they would pay off the balance on his fusion.  When all was said and done, he would be left with the truck and a loan for 43,500.  The dealer would own the car.  We don't know the sticker price, so we don't know what he realized from the trade in.

 

Now, as far as repossession goes, I mentioned it only as a possibility, and the consequences that would befall the dealer.  The reason is that unless the dealer paid off the balance they would never get a clear title on the fusion.  Therefore it would make no sense for them not to pay it off, particularly when they cut a check for 7,400 dollars to make the friend's purchase price 43,500 dollars.

 

The dealer cannot do anything with the Fusion unless and until the lienholder is paid off and he releases the title.

[J Francho]

I'm not sure you can make those assumptions.....  This is how people get tricked when buying a car.  It's also why we need the full story.  So far, no one's answered my question.  Something doesn't make sense.

 

This stuff makes my head spin, lol.

[gardnerjigman]

He is still hosed for extra money. You say sweet he got the $7400 check, so he will throw that at the principal to take it down to the asking price of the truck. BUT.... If he does that then there is a $7400 loan on the fusion in satisfied still. Either way, he is hosed for an extra $7400 bill.

Not trying to be rude, but I'm not sure what is worse, the deal your friend made, or your story detail giving.

[deaknh03]

Wait a minute..hold on. I figured this out. The guy buying the truck signed papers commiting him to almost 51k for a 43k vehicle, signed over his existing car for free..then his buddy had to pull a benny hill routine to get the value of the car that was given away for free. Everybody follow so far? Heres where it gets tricky..the guy that signed the papers overpaying and giving away his car, he's an idiot.

[F14A-B]

Lol.. Benny Hill huh? Lmao! Oh lord ...

[J Francho]

You can't give a car with a lien away....

[JeziHogg]

The Truck cost $43,500, they said they would give him $7400 (out of there own pockets) to pay the rest of the loan on the Fusion as a trade in (which they did). The final bill of sale ended up being $50.9k. They tried to scam a free car out of him by rolling over the $7400 onto the new loan, hoping he wouldn't notice. He got $7400 after I talked to them, therefore getting what he bargained for the truck and trade-in if he uses the $7400 towards the $50.9k, and yes I don't disagree that he's an idiot. Its not the first time hes  been ripped off. Hes an impulse buyer and never looks over the important things - See's something shiny and wants it.

[F14A-B]

Wait a minute..hold on. I figured this out. The guy buying the truck signed papers commiting him to almost 51k for a 43k vehicle, signed over his existing car for free..then his buddy had to pull a benny hill routine to get the value of the car that was given away for free. Everybody follow so far? Heres where it gets tricky..the guy that signed the papers overpaying and giving away his car, he's an idiot.

I might argue, it's more like Inspector Clouseau.

[gardnerjigman]

The Truck cost $43,500, they said they would give him $7400 (out of there own pockets) to pay the rest of the loan on the Fusion as a trade in. It final bill of sale ended up being $50.9k. They tried to scam a free car out of him by rolling over the $7400 onto the new loan, hoping he wouldn't notice. He got $7400 after I talked to them, therefore getting what he bargained for the truck and trade-in if he uses the $7400 towards the $50.9k

Who paid the $7400 Lien then!!!

Focus has $7400 lien

New truck costs $43,500

They rolled the "trade in to make it $50,900.

Your buddy got a check for $7400 that will HAVE to pay off the lien on the focus or hello bad trouble for your friend. Plus the $7400 your friend is already "upside down" on his new vehicle.

[Fishing Rhino]

The Truck cost $43,500, they said they would give him $7400 (out of there own pockets) to pay the rest of the loan on the Fusion as a trade in. It final bill of sale ended up being $50.9k. They tried to scam a free car out of him by rolling over the $7400 onto the new loan, hoping he wouldn't notice. He got $7400 after I talked to them, therefore getting what he bargained for the truck and trade-in if he uses the $7400 towards the $50.9k

 

I'm going to take an excedrin.  Make that two excedrins. 

[JeziHogg]

The trade in was paid off the loan for $7400 was paid by the dealership and like I said before, on the paper work it even said it was paid off by the dealer. The dealer readded the $7400 on the new loan, therefore trying to scam him.

[gardnerjigman]

The trade in was paid off the loan for $7400 was paid by the dealership and like I said before, on the paper work it even said it was paid off by the dealer. The dealer readded the $7400 on the new loan, therefore trying to scam him.

Dealers roll over stuff like this all the time. It's a business tactic. One of several. Just like the adds you see where they say "we want any trade, push pull or drag it in and we will pay $6k). In reality they give you up to $2k actual trade and roll the remaining on the note.

[JeziHogg]

Dealers roll over stuff like this all the time. It's a business tactic. One of several. Just like the adds you see where they say "we want any trade, push pull or drag it in and we will pay $6k). In reality they give you up to $2k actual trade and roll the remaining on the note.

Ya, but there wasn't suppose to be any rollover.

[flyfisher]

Think of it as two different transactions

 

truck purchase is 43k

Fusion loan is 7400

 

He signed a loan for 51k 

they gave him 7400 back but he still has the loan for 51k

 

he should have a loan for 43k and a paid off lien...if the loan is higher than the 43k he got ripped off, plain and simple as that is the cost of the truck. 

 

He should have walked out with a new truck and a loan for 43k and the dealership should have a fusion which has a paid off loan.

[gulfcaptain]

Had a friend that worked as a car salesman, here was the advice he gave me.

 

#1 Never buy new.

 

#2 You find a used car you like, look it up on KBB and see what the trade in value is.....this is what the dealership has into the car at the 

      most.  You can see how much the mark up is on it from that point.

 

#3 NEVER tell them what you plan on putting down or say you're going to pay in cash, they will use that info against you.  Only tell them 

     after you have gotten the price where you like it.

 

#4 If you don't like the price or the deal, get up and walk away.  They will call you back and tell you they "talked" to the powers that be            and are able to do the deal you want although they didn't do anything.  And most times when they walk into their manager's office, it's      to BS and done for show.  This way you think they are doing something for you even though they aren't.

 

The first car I bought after this advice it ended up being totaled by someone who fell asleep at the wheel as it was parked outside.  After the loan was paid off, still got an additional $500 on top of it for the value of the car above the loan amount.

 

I would have gone back, had the contract re-written as well and had them wire the other company the $7400 to insure the loan was paid off and ask for conformation.  

[slonezp]

You're in Canada. Was the truck bought from the Snidely Whiplash Automall?

[SirSnookalot]

I don't think any scam was intended, it really looks to me as no more than a clerical error.  Discussing liens and repos is getting way ahead of the situation.  Used car vs new car isn't pertinent to this saga, or selling the old car on your own.

I think everyone would agree that the old car should have been paid off and the new vehicle should be $43,500, with the buyer not owing 1 penny more.

The resolve should be fairly simple, just a matter of the buyer meeting with business manager of the dealership, the wrinkle is Canadian law without the 3 days to think it over.  

 

All that being said, there just may be some facts we are not privy to and the sale is perfectly legitimate.  I'm not so quick to condemn any one without seeing the paper work myself.