Is this luxury of “dealer remorse” available to the common man?
Can I sell my car below market and then 24 hours later give you a call and repo the car back from you?
The dealer probably has buried in the long contracts he makes you sign, clauses about ownership interest, subject to funding clauses, assignment of title etc etc. Besides, the car is not titled in your name. Whereas a private party trading in just hands over title and does not have those clauses.
Pushing the snark in the wrong direction brother.
IIRC it’s part of the lending agreement.
I’ve seen it happen a few times but my market was common for income problems.
hate those situations. my coworker just had a lease rewrite which almost NEVER happens. it’s super simple. an approval is based off the information provided when submitted prior to finance… but the deal won’t get funded to the dealership if something isn’t right…and it gets kicked back to the dealership to get rewritten or unwound. this can include 100 different reasons of signatures/waivers/proof of residency/whether it be inaccurate income, too high payment, etc.
the real deal is… they made money off the warranty in the lease. maybe if it was a low payment lease or “good deal”, that was their only saving grace to make the deal positive. then you turn around and want to cancel it. so finance manager be like okay fine… do that but lets bump the rate. depending on the lender though, some legit give you better rates for buying warranty’s/GAP.
bummer. should just go in and talk to the GM and straighten it out.
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Had one like that - my old store had a deal get rejected on income. They didn’t stip it on approval but reneged and asked for proof of income and residency.
She was light on her income, yada yada, changed the structure and lowered tier.
We called her to tell her we could lose on the car but her payment would go up to … she said no.
We asked her to return the car … she says she was out of state. We gave her 10 days, which she stopped answering or returning our calls.
It was reported stolen and about 30 days later she got pulled over and arrested. The plates didn’t match the unit since we unwound that too.
Posted it as a repo … stubborn won’t get you anywhere when you lack leverage. Her gripe was with the finance company - not us.
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I didn’t want to go back and read the whole thread but the one that came to mind was the comment about the repo going on his credit. As someone mentioned, if the car has not been financed, it will not go on your credit. Sure, you can repossess a car. You can even take someone to court and make them pay for their insolence but all you would get is a judgement - not a repo. Even if you do happen to get a repo on someone’s credit, all they have to do is dispute and it will be taken off. You can’t report just the bad on someone’s credit 9i.e. they would have to have a credit relationship with the dealer and that would only happen if they happen to make some payments to the dealer before being repossessed).
The other one you just reminded me about is the “dealer on the hook for first payment” This is only the case if the dealer has bad or no “credit” with the lender. It typically only happens with small independent dealers and with smaller sub prime lenders. Some agreements state the buyer has to make three consecutive payments before the contracts is fully vested. There is a term for this type of lender agreement but I can’t remember at the moment.
This does not happen at franchised dealers. If it does, it is because the dealer is a POS and constantly forges or slams people in loans that should not get loans. I mean, they have to be serious delinquents to get to that position. Once the car goes off the lot and the deal is funded, the lender owns the contract. First payment or not. I mean, unless it is proven that he dealer committed fraud by say padding the income or time on the job, etc. the bank is on the hook.
I think you misinterpreted what he’s saying. All of the dealers (with very few exceptions) go to the same lender, which is the main one for their brand as in Nissan = Nmac, Mercedes = Mercedes Financial, it isn’t like they have a wide variety of lenders. When a client wants to sign a lease The dealer goes to the bank to get someone approved, but the everything isn’t finalized until a month after the signage date and the client has made their first payment. Hence, the dealer is on the hook for the first payment. They can’t slam people in loans that shouldn’t get them as they aren’t a bank. They have to submit documents to the bank( bank changes according to brand).
In simple terms - dealer owns a car until financing company accepts a contract and takes the ownership of the car, right? So, of course that dealer is on the hook until then.
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I’m not sure on your experience or experiences on this area so I’ll respectfully disagree here.
I have seen it done a few times, re: my previous comments.
This was during my time @ Alpha store or CDJR store.
Perhaps its a Michigan thing but I do not think that is the case.
I can respect that. I am certainly not an expert and certainly not familiar with how it’s done in Michigan. In California, you don’t own the loan until the first payment gets made. Once the deal funds it funds. And if the OP would have had his car picked up, a repossession would not be listed on his credit.I speak from experience also, FWIW.
I think New York is the same as Michigan as well. Probably a west coast thing.
He’s not in California - he’s somewhere east coast.
I’m not sure on California does it either - car sales is an odd game… everyone thinks it’s very coordinated and really, everyone is just winging it.
No doubt. A bunch of knuckleheads in the business. I mean, I am guessing that what happened was, this manager the OP dealt with rolled the deal without having it fully approved (including the back end). The kid was 18 or something - first time buyer, probably not solid income, etc. Get’s it approved on a wing and a prayer, then gets his ego bruised when the kid cancels the warranty and brings in second base. The rest was just everyone making the situation worse. But hey, it all turned out well for them.
I could see them doing a spot at the last minute … I believe he said it was the last day of the month too.
If we couldn’t get an analyst on the phone - we just let it go.
Chevy sales girl and Benedetto are too honest and nice to work in the car industry. You guys should move on to real estate 
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Probably should be another post, but how often do spot deliveries happen in a franchised dealership and the percentage that go wrong? I understand that there is a risk/reward situation in regard to the dealer doing this, but I would assume he’s not going to let someone drive off with a shaky background. Then again, I’m not involved in car sales either outside of being interested.
IThis is the most clear and straight forward recommendation.
The OP’s misguided claim that he doesn’t have to return the car until he given the $500 first is:
- Incorrect
- Puts his sibling at risk of legal action by the dealer.
Best thing is return the car and get written documentation the entire deal is mutually being unwound. They give you back your money (in person or by mail) and won’t hold you liable for the mileage.
As a side note: your little brother should learn a valuable lesson since (to me) this is all his fault for being irresponsible and not reading his contract.
Edit: finally got to the end. Glad it worked out for OP. Hope the kid learned a lesson.
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I would say all the time. Any manager worth his metal can tell if a bank will approve a deal and at what structure without having to send it in to the bank.
Again, this may be different in other states. However, the risk for a spot delivery is minimal now. I would say all dealers (all franchised dealers at least) have a portal to the banks and can submit deals to the bank even before a customer agrees to the final terms. Hence, the deal is approved prior to leaving the lot and a good dealer would collect any and all bank required documentation prior to delivery.
Sometimes the deal gets approved automatically (no matter the time or day) other times an analyst has to look at the deal and make the call, which means they would have to wait for the bank to be open. If the deal was done last day of the month as the OP stated, maybe late at night, and the kid was an 18 yo first time buyer, the dealer probably delivered the car thinking it would get approved when the bank opened (which it did apparently). However, he probably miscalculated the approval tier or down payment stipulations and had to re-contract under the correct terms. But I digress.
To answer your question, it should happen regularly as dealers often sell cars late at night and on holidays, etc. How many come back depends on the experience of the manager or finance director but if you spot deliver say 100 cars and have 5 come back, you are probably okay. If you sell 100 cars and have 10 come back then you are probably on your way out. If you sell 100 cars and 0 come back, you aren’t trying hard enough, stretching the bank enough, and leaving money on the table.
Is there a law in Florida that they can’t do this after ten days?
Our dealer now says we have to “agree” to a $300 disposition fee or bring the car back…
This sounds fishy…
Would love some feedback.
First payment was made when we drove off the lot.