Have you called the dealership yet? Why not at least ask them to confirm the contents of the letter?
You can also ask the dealer for a copy of the letter denying financing at the agreed-upon terms.
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Anthony,
That would work if it wasnāt for the LoJack they install on all their cars. Iāll get some answers tomorrow. From the logo it looks like youāre in the business.
Do you know how long it typically takes for the ownership of the car to transfer from the dealership to the finance company after approval?
Hi Stark,
Normally I would just call a business to clear up any confusion. After hearing a few stories of dealers requesting the car back, I know itās in my best interest to contact the finance company first to confirm my loan. They were closed over this three day weekend. I also found some new Yelp reviews for the dealership confirming I should be prepared if this isnāt a mistake.
Iām going to make a few calls first thing in the morning and then Iāll contact the dealership. Iāll post an update when I know more.
Thanks for your comments.
So, a bit more research shows that the dealership has 10 days to cancel, but it seems their cancellation rights are predicated on a failure to get financing for your lease. I donāt know that there are other justifications for rescinding the contract. It would certainly appear that they have gotten financing for your vehicle, so that justification would seem not to apply here. One hopes it is just an error on their part. The letter you quoted addresses the failure to get acceptable financing, but again that seems in error.
So, either an error or they are just trying to jerk you around and get you to come back in and pay more, accept a lower trade value, or something else. Once you speak with Hyundai Finance, then youāll be in a much better position to speak with the dealership. Also, look at the contract details (I guess on the back of your yellow lease contract) to see what it says about rescission or cancellation of the contract. Or, after you speak with Hyundai, call a lawyer. I found several lawyer web-sites in Cal. that address car dealer lease cancellation, fraud, etc. Depending on how good your deal is, spending a couple of hundred dollars on a legal consult might make sense.
Good luck.
Good Morning Leasehackrs,
Problem Resolution!
After spending more than an hour on the phone with 4-5 people at Kia Cop and Kia Finance and being transferred numerous times, I confirmed my financing. Ever person I dealt with today was very helpful and consfused by my situation.
I called the dealership today and spoke to someone who clearly had me on speaker phone and sounded a little nervous. I told him I recieved the Notice of Contract Cancelation and that I had spoken to the corp office. He immediately told me that everything was ok. He said the dealership always sends this lettter out to ācover their buttsā if they havenāt received financing by the tenth day of the contract. Noteā¦ I was able to see my account online on 1/9/17.
He apologized and said that the person who did my paperwork should have warned me that this was a common practice. He was going to have a conversation with that individual. Just a side noteā¦ The gentleman that did my financing told me he had been in this business for 25 years, so this seems like a stupid āmistakeā for a veteran to make.
In the end I am happy with the result. I do wonder why I wasnāt called and told everything was ok (from 1/10-1/17) and to disregard the two letters sent to my home.
I would like to thank everyone who took the time to respond to my question this weekend. It shows what a great community Leasehackr has created.
Thank You!
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What are the chances it was a āmistakeā?
Ha, the dealer decided to eat a small loss instead of opening a big can of worms.
Itās possible that they have an automated system that generates these letters on the 10th day. So if someone did not mark OPās lease as accepted, then no one realized for 7 days that the letter was sent out. Just saying, not defending the dealer.
given kia dealersā reputation and their āwillingnessā to make deals, this is possibleā¦
As I suspected, a clerical error. Much ado.
Now take that LoJack out of the car
Regardless of the dealer admitting the āmistakeā, they still attempted to commit a spot delivery scam. You should really report this to the attorney general of your state for the sake of others. The explanation is entirely suspect. The consumer should never be on the hook for such a financial arrangement. The financing company approved you, you signed an agreement, the financing company now owns your car and has entered into a leasing agreement with you. Assignment of the note is not your concern. They wanted to change the terms of your agreement under duress, which is fraud.
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@bblades He was never on the hook for anything because he had account opened. Read again what OP said:
Couldāve easily be a mistake and/or sloppiness on their part. They did not threaten or harassed OP, just sent their standard letter. Ever give a benefit of a doubt to others, even if they are car dealers?
The intent of the letter is fraudulent, duress is not limited to physical threat. If a dealership says unless we renegotiate the deal we will have to take the car, thatās duress. There is no circumstance in which these letters should be going out.
Where do you see fraud or duress here? Or ādealership says unless we renegotiate the deal we will have to take the carā? After account was opened, the dealership could not do anything. Like I said before - probably mistake/sloppiness and nothing else there. Relax, OP is all good.
You fail to realize that the letter is a classic Spot Delivery scam setup. There is never a reasonable excuse for such a letter being sent unless it is to defraud customers. It is naive to chock it up to sloppiness. It is a akin to saying the Nigerian prince mistakenly sent you the email that he is giving you $5 million, it was meant for someone else.
given that you had a hell of a week and countless hours invested in this, iād contact the dealer back and ask how theyāre going to make up for this? Give them an opportunity to āmake it rightā, explain to them you had to take time off work to deal with it etc and you have loss of income blah blah blah. If not, tell then youāll detail your experience in the survey which goes to corporate (you get a survey sent to you within a few weeks of leasing a new car). Dealerships HATE a bad survey.
LOL
You do realize that IF dealer knew the account was created, they could do absolutely nothing to OP because the car belongs to the leasing company? So why bother then?
Yes, OP please report this to your AG. I believe this has all the hallmarks of a yoyo scam.