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Discussion Starter · #1 ·
ok here's the situation,i went to a small "shady" dealer to buy this car i found in the auto trader. long story short they were asking more for the car than it was worth but i nedded to finance and the price of the car was less than any normal bank would finance. $6500 for a 97 vr6 gti. well i went down and signed the paper work and drove the car home putting down $1300 down on the car. 2 weeks later i get a letter in the mail from the bank they used saying that they declined my application, for some un-stated reason, my credit is a little below average but not bad. any way i've found that the car has considerable problems and that it has been in at least one major accident(the whole left side of the car has been resprayed), so i really dont want the car any way. further more i found a service reciept in the glove box showing more miles on the car than are on the odometer disclosure on the sale of the car, its only 1200 miles but still it means the odo was rolled back at some point. i have not yet called the dealer, but i'm sure that they have gotten the same letter and have not tried to contact me. do i have the legal right to return the car and get my deposit back seeing as how the bank they said would finance me didn't?
 

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Re: need help on returning a used car (STRMTROOPER)

If you signed a contract, it should have been with a specific lending institution. If that bank has turned you down, then I believe the contract is no longer valid and you should be able to get your deposit back.
 

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Re: need help on returning a used car (STRMTROOPER)

Quote, originally posted by STRMTROOPER »
further more i found a service reciept in the glove box showing more miles on the car than are on the odometer disclosure on the sale of the car, its only 1200 miles but still it means the odo was rolled back at some point.

Proven odometer fraud can get the dealer in heaps of trouble, so the dealer will probably be quite willing to completely undo the deal...
Lesson #1 to be learned: never trust the odometer unless there is verification in the form of recent service records or recent registration / inspection records that indicate that the odometer is true. You got lucky that you found a receipt proving the fraud -- many people never know that they've been scammed because there is no proof.
Lesson #2 to be learned: learn how to detect severe repaired crash damage and other problems, or take used cars for independent inspection before buying.
 

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Re: need help on returning a used car (tjl)

I'd say you probably have an "out" due to the odometer thing, unless there is some plausible explanation for it.
But the contract ... I'm guessing the lender has provisos in there to assign the contract to whatever credit institution they choose where you're approved. May not be the one you discussed with them, may not be the first one they submitted they submitted your application to ... hell, the dealer can even carry the contract themselves if they so choose. Not many want to tie up their $$ though, unless it's a real sled lot.
Read your contract carefully. Odds are, the dealer has the option of shopping that contract around up until the first payment due-date. But if there is ugliness with the odometer situation, you can probably bet on them taking the car back and washing their hands rather than involving the powers-that-be.
edit: rereading your post .. if you believe there was a odometer rollback due to a service worksheet that shows a different mileage, you may simply be dealing with a typo when the order was written up.
Also, the "unnamed reasons" for your decline are probably based on the credit report that was pulled on you; the lender cannot disclose the exact reasons since they are not the credit reporting agency. You'll need to contact the bureau (on the decline letter) directly for that info.




Modified by Magnificent_Bastard at 12:03 PM 4-3-2006
 

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Discussion Starter · #6 ·
Re: need help on returning a used car (Magnificent_Bastard)

ok little update and more help needed. turns out they submited my application to 3 different companies, the rejection letter was from the only company that wouldn't finance and the contract has the actual company listed that did in fact finance me. here's the twist. the car company called me and told me they made a mistake on the odo reading on the contracts and sent me out all new paper work for me to sign and mail back, this place is in tucson and i'm in mesa so they didn't want me to come all the way back to resign. the new contract is dated on the day they sent it to me. now obviously the old contract is void because of the incorrect odo reading. would i be able to just tell them i'm not signing the contract and they can pick up the car?? i use the car for work so i have already put on 4800 miles and one of the back tires(which i mentioned to them was bald but they said it had enough tread to sell) blew out so am i responsible for any depriciation or replacement of the tire. the other thing that i really need to know is that i put down a large down payment, but they didn't want to do the contract when i put the money down because they still had to fix some things on the car so they wrote it up as a deposit. they have a sign posted that says all deposits are non-refundable, but i made sure to write deposit/down payment on the check. the check has already cleared so can they legally keep that money if i return the car?? sorry its a lot of questions but i really need to know before i sign the new contract and send it back.


Modified by STRMTROOPER at 11:29 PM 5-2-2006
 

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Re: need help on returning a used car (STRMTROOPER)

Demand nothing less than a full refund. Something smells about this whole deal. Be very clear about the issues you uncovered (especially if it was sold as being accident free). Also be very clear about the fact that you will let the media know about this dealer. Believe me, local media loves and easy target for those consumer action stories. Another avenue is to let the finance company know that you have uncovered odo fraud. I have a feeling they will drop this loan like a hot potato. Lots of options, get busy!
 

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Re: need help on returning a used car (STRMTROOPER)

The car dealer noticed the error, and are making efforts to correct. Is that a problem? Nope. They're holding up their end of the bargain.
Old contract is technically void, but you did enter into an agreement for purchase with the dealership. Materially, the deal did not change. And, you've placed 4800 miles on the car. Can't just decide you "don't like it anymore and come pick it up".
Had there been some actual manipulation of the odometer reading, and from what you've written it was merely a typographical error, then you might have an out. As it stands, based on what you've told us, you bought a car. Sign the new contract, and realize buying tires, fuel, and windshield wipers are all part of car ownership. Certainly hold them to the items they stated they'd repair in the original agreement, but you must give them the opportunities to make those remedies.
The down payment/deposit thing is a little murky. The only thing I can think of is they wanted to keep to a lending program's minimum amount financed. But that money is either accounted for in the price OR listed on the contract, correct? Has to be disclosed one way or another (although AZ may be a little different in their disclosure requirements).
 

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Re: need help on returning a used car (STRMTROOPER)

Well, is the odometer problem just a paperwork error (but the car's odometer is correct, based on evidence from the receipts you found in the car), or is the car's odometer incorrect?
If the latter (i.e. actual odometer fraud), it is best to undo the whole deal. You don't want such a car if you paid more than beater price for it.
 
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