Advice Sought: Traded-in car has not been paid out

Tavers · 19-01-2009, 01:04 PM

I have an issue and need some advice. This is an issue that has been going on for over a month now.

Back in Nov I decided to get a new car from a dealer. I went in, got my car valued for trade and decided to proceed with the purchase.

The loan was settled for the total amount of the car with the understanding that the dealer would settle the traded vehicle.

Around 3 weeks ago I look at my bank account and notice a debit for the amount of my old car loan has been debited. Puzzled I call the financier to be told the car has not been settled.

I call the dealer, speak to one of the staff members there who apologises and tells me that they will settle the car.

Fast forward to last week, I call the financier to be told that no, the car had not settled yet. I called the dealer, was told they were sorry, and it would be done in the next few days. Call back on Fri, get told that the owner is aware and would be making the payment. Call back today to get told the owner is sorry, some story about staff leaving and it would be done.

I went off telling this was the same old story they have told me over and over and it was not good enough.

What can I do? I am mighty tempted to get a friend to take it for a test drive, and keep it till it is paid out. But that might be a little over the top.

The next payment is due and I don't really want to spend more money on a car I no longer have.

Laminge · 19-01-2009, 01:51 PM

Under what name is the car currently registered?

I would be walking back in demanding the return of the car if it is yours, failure to hand over I would call the cops, yes I am suggesting wasting their time shock horror, and get your car back

Damn thats is not acceptable at all

R-series · 19-01-2009, 02:06 PM

yeah mate thats not cool , sounds like they are holding off till they sell the car for triple your trade in price lol , just out of interest where abouts are you, what was the car and how much did you get for it ? or were supposed to get ?

Tavers · 19-01-2009, 02:13 PM

Quote:

Originally Posted by Laminge

Under what name is the car currently registered?

I would be walking back in demanding the return of the car if it is yours, failure to hand over I would call the cops, yes I am suggesting wasting their time shock horror, and get your car back

Damn thats is not acceptable at all

Well, I have to check the documents, but I am fairly sure when I signed the contract for the new car, it is also for the ownership change. But what you're suggesting is tempting.

Quote:

Originally Posted by R-series

yeah mate thats not cool , sounds like they are holding off till they sell the car for triple your trade in price lol , just out of interest where abouts are you, what was the car and how much did you get for it ? or were supposed to get ?

They can't legally sell it, as it's encumbered and a REVS check would show this.

You would think it's in their best interest to pay it off so they can sell it. But in todays market I am sure they figure they can wait as it won't sell all that quickly.

I'm in Brisbane. It was an 02 BA XR6. I traded it in for $8K and I owed $9700 on it.

Seeing as I made a payment, the payout figure changes. They longer they wait, the more I am out of pocket.

R-series · 19-01-2009, 02:20 PM

i would definitely be going and taking it back , by any means necessary - they wont renegotiate your payment details to allow for that and losing more than you already have, you will find more than one person to buy it for 8 any day of the week essentially you have just given it away :(

Wally · 19-01-2009, 02:53 PM

Block the transfer, tell the finance company and they will retrieve it.

4Vman · 19-01-2009, 03:00 PM

Do you have your new car yet?

Tavers · 19-01-2009, 03:11 PM

Yes, I collected the new car the same day I handed the keys and the bank cheque over.

Looking back I wish the bank drew up two cheques; one for the payout and one for the balance of the car.

4Vman · 19-01-2009, 03:14 PM

Quote:

Originally Posted by Tavers

Yes, I collected the new car the same day I handed the keys and the bank cheque over.

Looking back I wish the bank drew up two cheques; one for the payout and one for the balance of the car.

That would have been a better thing to do, the car yard has no vested interest in paying for your car quickly........
They'll be trying to sell it before paying for it.
Effectively you're funding their yard stock for them.
Hit them for interest through consumer affairs...

Tavers · 19-01-2009, 03:20 PM

Thing is, legally they are unable to sell it till it has been paid out. But you're right, they have no interest in paying out the car.

I do wonder if the bank can do anything like grabbing the money for the old car back from the dealer. It was on the invoice what portion was to be used to pay out the car.

73gscoupe · 19-01-2009, 05:29 PM

Dealer not about to go bust is it?

I would be worried they actually dont have the liquidity to pay you.

But its probably just incompetence on their part...

geckoGT · 19-01-2009, 05:39 PM

The bit that concerns me is you are still liable for the interest due on that loan until they pay it out. Then you will have to take them to court to get it back, which will take for ever and they will probably bury you in paperwork.

I would be calling fair trading and get some advice.

By the way, om QLD rego papers it clearly states they are not proof of ownership. The proof of ownership is the bill of sale that your finance company holds over it on your behalf. This can not be challenged unless they have a reciept. You could not repossess it, but your finance company could as they hold the bill of sale on it. Might be worth a talk to them.

Smoke Pursuit · 19-01-2009, 05:45 PM

are they a big well known dealership?

This happened to me at Zupps a few years ago when we traded one of our Focus's in on a new V8 Calais for the old girl... Took them a few weeks to pay out the residual left on the Focus... Got to the point where I nearly went up there and gave them a bit of trouble, a few threats were made and they paid it out.... Most dealers will pay out residuals by next business day... They can't do anything with a car that they dont legally own...

Smoke Pursuit · 19-01-2009, 05:51 PM

Quote:

Originally Posted by geckoGT

The bit that concerns me is you are still liable for the interest due on that loan until they pay it out. Then you will have to take them to court to get it back, which will take for ever and they will probably bury you in paperwork.

I would be calling fair trading and get some advice.

By the way, om QLD rego papers it clearly states they are not proof of ownership. The proof of ownership is the bill of sale that your finance company holds over it on your behalf. This can not be challenged unless they have a reciept. You could not repossess it, but your finance company could as they hold the bill of sale on it. Might be worth a talk to them.

Depends on the finance held over the vehicle... They are all different..

FPV+fteT3 · 19-01-2009, 05:59 PM

Went to a yard once to buy an xr for 30k did a revs check found out it was in the yard under consignment was owned by someone who owed ford credit 28k told the yard owner that i would not buy the xr till it was revs cleared it was like pulling teeth the yard owner was winging about if i pay it out for the 3rd party and you decide not to buy i am out 28k...........Simple you pay it out I buy the car took about 2 or 3 weeks to buy the xr this could be what they are doing with your trade inn be careful.

Pedro · 19-01-2009, 06:05 PM

You can get free advice from the Citizens Advice Bureau ...http://www.accc.gov.au/content/index.../whichType/org

Or Dept. Fair Trading ... http://www.fairtrading.qld.gov.au/oft/oftweb.nsf

Tavers · 19-01-2009, 06:45 PM

Thanks for the replies guys, I really appreciate them. Will make some additional calls tomorrow.

On a side note, the car listing has been removed from their website, and the other car sales sites. Wonder what that is all about.

Dave_au · 19-01-2009, 07:25 PM

Quote:

Originally Posted by Tavers

Thanks for the replies guys, I really appreciate them. Will make some additional calls tomorrow.

On a side note, the car listing has been removed from their website, and the other car sales sites. Wonder what that is all about.

Probably saw this thread and didnt want to be publically shamed.

cycle myth · 19-01-2009, 09:52 PM

The dealer is "floating" on your funds.

It means one or more of the following -

1) the dealer has crap admin

2) the dealer is in financial difficulty

In hindsight the best thing to do is payout the car yourself directly with one of the cheques you drew.

If push came to show you would be the one with the penalty interest for late payment.

SOMETHING TO WATCH FOR: - if your next monthly payment for the old car is due before the dealer pays it out it will draw - my suggestion is cancel any direct payments - and watch out for penalties for no payment.

If you get no joy tomorrow from the Dealer - I would suggest you cancel the cheque with the bank - draw another and payout the bank directly.

Dob the dealer in for some attention to its trading licence - it deserves it now.

R-series · 19-01-2009, 10:10 PM

i say publicly shame the dealer here then hope as many of us as possible ring up or even go in to "buy" your car , asking that it be revs cleared before we draw up a cheque ? i know i would just to get some back on the caryards

philfree · 19-01-2009, 10:23 PM

i would demand the car back since they don't actually own it

Tavers · 19-01-2009, 10:30 PM

Quote:

Originally Posted by cycle myth

The dealer is "floating" on your funds.

It means one or more of the following -

1) the dealer has crap admin

2) the dealer is in financial difficulty

In hindsight the best thing to do is payout the car yourself directly with one of the cheques you drew.

If push came to show you would be the one with the penalty interest for late payment.

SOMETHING TO WATCH FOR: - if your next monthly payment for the old car is due before the dealer pays it out it will draw - my suggestion is cancel any direct payments - and watch out for penalties for no payment.

If you get no joy tomorrow from the Dealer - I would suggest you cancel the cheque with the bank - draw another and payout the bank directly.

Dob the dealer in for some attention to its trading licence - it deserves it now.

It's a little too late to cancel the cheque as this has been going on for almost 6 weeks now.

I am hoping it's not option 2. I have another payment due in a week. I have asked GE to remove my direct debit as I don't want to make another payment for it till this is settled. I am fine with penalty interest, but not the complete payment.

cycle myth · 20-01-2009, 11:13 AM

6 weeks!

I suggest you take control of this now.

See if the cheque has been cashed.

Speak with your bank on what are you options.

You may not be worried about penalty interest however the financier will be considering you late - if you are late over 30 days that is not good - over 60 and they can mark your credit file.

There will be penalties beyond just late interest.

Speak with the respective authorities - better now then later.....

Assassinbm · 20-01-2009, 02:16 PM

Quote:

Originally Posted by cycle myth

You may not be worried about penalty interest however the financier will be considering you late - if you are late over 30 days that is not good - over 60 and they can mark your credit file.

& if the finance company repossess the vehicle with your name on finance, there goes another black mark on your credit rating

R-series · 20-01-2009, 02:39 PM

today tonight, 60 minutes, and current affair then if that fails try judge judy works over much more petty crap so they should definitely bite for this lol

Tavers · 20-01-2009, 03:26 PM

I spoke to MTAQ, but since the dealer isn't a member there, they are unable to assist. I then spoke to fair trading. I need to check my contract and then give the dealer X amount of days in writing saying they have breached the contract before I am able to proceed.

I just spoke to GE, but they weren't much help. I checked with them, and there has not been a transfer of ownership of the vehicle, so it is still in my name as far as they're concerned.

4Vman · 20-01-2009, 03:28 PM

Quote:

Originally Posted by Assassinbm

& if the finance company repossess the vehicle with your name on finance, there goes another black mark on your credit rating

and they'll wholesale it for half its payout figure and bill you for the difference....

whales · 20-01-2009, 03:54 PM

I'd get legal advice straight away before you cop all thats been mentioned previously.

Tavers · 20-01-2009, 04:27 PM

I'll work something out with GE so it doesn't get to a stage where my credit is affected.

I think I'll go to the dealer in person tomorrow to try and get a resolution. I'd be interested to see if the car is still there considering they have removed the listing.

Gaz · 20-01-2009, 06:09 PM

In WA you only have a week or 2 after selling a car to notify the transport people? If your to slow ya cop a fine or something

Most states similar?