used car contract...please help!!!

[James Pound]

What is the name of your state? I live in Arkansas but the car deal was in Mckinney Texas.

Approximately 3 weeks ago I found a 1998 Corvette on Ebay for sale at a car dealership in Mckinney Texas. I called the dealer and asked them to hold the vehicle until I come to look at it. They wanted $200.00 up front to cancel the a auction so I agreed to pay them prior to purchase. It was a gamble I was willing to take. When I arrived I found several problems with the vehicle even though I was told that it was immaculate. However, the dealer agreed to fix the problems if we made a deal. A $4,000.00 down payment was required for me to take delivery of the vehicle. I would also be trading in my current vehicle. I only had $800.00 at the time and the dealer told me that I could put that money down until I get the other $3,000.00 within a few weeks. They wanted me to go ahead and sign all of the paperwork including the finance contract, as is no warranty paper, agreement for the dealer to payoff my existing vehicle, and an agreement to arbitration form in case of dispute. This was supposedly to prevent me from using a lawyer if needed. The paper work was signed at this point so that when I came back with the downpayment that I would simply turn over the $3,000.00 for the rest of the downpayment and then be out the door. After about two weeks I had decided against this deal and had accepted the fact that I will lose my $1,000.00 security deposit or partial downpayment if I did not return. I found another vehicle that was a much better deal in Missouri. I drove up to the dealership there and made the deal, or at least attempted to. They called to payoff my vehicle and informed me that it had been paid off by the dealership in Texas two days earlier. I then found out that they intiated the vehicle loan through the finance company as well. I did sign the papers, but none of this was to take place until I made the downpayment and took delivery of the vehicle. The dealership in Texas is not cooperating and are threatening to come and take my current vehicle that they paid off and telling me to come and get my corvette off of their lot. The finance company tells me that it is in between me and the dealer and that I owe them $27,000.00 since I signed the papers. Currently, the title of my vehicle I am driving is still at the bank and has not been sent to Texas yet. I have asked them to hold on to it until I work this out. Do I have any rights here. This is fraud in my opinion. I don't even have one copy of any of the contracts that I signed because I was informed that it was not a done deal until I make the downpayment. The dealership tells me I now own the Corvette and to come and get it and to bring them my car that they paid off. If I own the Corvette now, then does that mean that I do not owe the car lot the downpayment? Any help would be greatly appreciated. Thanks!

 

[shortbus]

When you start signing your name to things, that's a good sign it's a done deal.

It doesn't matter what they told you in person. The written agreement supercedes any of those terms. I'm guessing your paperwork doesn't say you have the right to back out of the deal.

Looks like you own a nice used Corvette in Texas.

 

[itsacatsworld]

" I called the dealer and asked them to hold the vehicle until I come to look at it. They wanted $200.00 up front to cancel the a auction so I agreed to pay them prior to purchase. It was a gamble I was willing to take.".....You won a vette. I hope you had it checked out and it hasnt been wrecked, nice car to drive.

 

[James Pound]

Update on car contract

I sent identical emails out to the dealership owner, general manager, finance manager, and the sales manager telling them that they have committed fraud by initiating the contract and paying off my current vehicle without holding the papers until I return with the remainder of the down payment or without having taken delivery of the vehicle. I explained to them that I would be contacting the attorney general of the state of Texas, the better business bureau, and that I would seek out certain forums on the internet in which customers complain about dealership problems. I also explained how potential bidders of their vehicles through online auctions may wish to be educated in detail about past customer transactions. I did not threaten them, but I did advise them on how powerful the internet can be and how complaints can be devestating to their future sales. I gave them a very short time frame to contact me regarding this issue and that this time they will not have the liberty of telling me what I am going to do, but rather they will be telling me how they plan to resolve this matter in my favor and in their best interest. I received phone call from them within a few hours and they were very willing to work this problem out with me. They chose to reverse the transaction immediately and told me that they prefer to have happy customers and that they do not want to do anything that would be damaging to their new franchise.

Sometimes, we must explore every possible angle when dealing with people like this and exhaust all resources available to us if necessary. With research, good advice, and a little luck, your chances of walking away with a Cinderella story will increase significantly. And as for the dealership, they did the right thing and because of this, they will be very successful in the future with new customers. As for myself, I have learned a valuable lesson, do not sign on the dotted line if you see a red flag and always keep in mind all of the "What if's".