Carmax bought leased car then claimed there's $19K unpaid balance

[doanthaitu]

I want to express my gratitude in advance to anyone who will contribute their help.

I live in Southern California, Orange County, City: Buena Park.

This is my first time leasing a car and also my first experience with Carmax. I came to them because they advertise that they will make our buying/selling car experience much easier.

My lease was 3 years, but I sold it to them at year 2. They made me wait for 2 hours because they needed to contact Audi Financial to obtain payoff info. When I asked why it took so long they told me they need to verify by phone AND by fax.

When they done, they offer to by my car for $30,000 and the payoff was around $12,000 then they cut me a check for $18,000. I signed the contract, deposit the check, payoff my credit cards, get another car, pay personal loans....

They called me in about 2 weeks and told me they made a mistake and I now owe them $16,000. I was shocked, how can they made this kind of mistake? I mean both Carmax and Audi, this wasn't the first time they do transaction like this, and they did verify by phone and fax, how could this be? I took my car there because they advertise it will be easier, but this is too much hassle.

Now they sue me, I answer to the complain, show up for case management.. I just receive Request for Admission and Request for Production.

Request for Production:

1. Produce YOUR copy of the CONTRACT
2. Produce all DOCUMENTS relating to any payments made by YOU on the CONTRACT
3. Produce all DOCUMENTS between YOU and PLAINTIFF relating to CONTRACT between November 1, 2014 and the Present.
4. Produce all DOCUMENTS which evidences payments made to PLAINTIFF pursuant to the terms and conditions of CONTRACT.
5. Produce all DOCUMENTS that YOU relied, are relying, or will rely upon for YOUR Statue of Frauds Affirmative Defense as alleged in ANSWER TO COMPLAINT to PLAINTIFF'S COMPLAINT.
6. Produce all DOCUMENTS that YOU relied, are relying, or will rely upon for YOUR Unjust Enrichment Affirmative Defense as alleged in ANSWER TO COMPLAINT to PLAINTIFF'S COMPLAINT.

Request for ADMISSIONS:

1. ADMIT that you executed the CONTRACT.
2. ADMIT that YOU failed to make payment on the CONTRACT dated November 24, 2014.
3. ADMIT that YOU owe the amount of $16,000 on the CONTRACT as of January 15, 2015
4. ADMIT that the CONTRACT allows collection of attorneys fees and costs in the event of default of the CONTRACT.

Can someone please help me to answer these Requests?

I also would love to send them the same as to obtain Documents that they used to obtain the payoff amount from AUDI Financial, and their procedure of handling buying leased car so I can see how did they make this kind of mistake in the first place.


Please help. Thank you very much, I really appreciate your help.

 

[FlyingRon]

Well, you should read the contract. Almost certainly it gives them the right to come after you if the loan/lease balance isn't what you said it was in the contract. I'm confused how we got to $16,000 here. It sounds like the amount in contest would be the difference in what the payoff amount was stated in the contract and what it actually was (if I understand you, should be closer to $3000 not $16,000).

Generally, you answer this by making copies of whatever they ask for that you DO have and answer that you DENY each point that they requested admission. I'm also curious about the missed payment on the November 24th.

With this much involved you should probably consult an attorney.

 

[doanthaitu]

Thank you for your respond. I did consult the attorney, all they do for me was to send offer letter to Carmax to ask to reduce the payoff amount, and they charge me $1000 for that. Carmax refuse, and there goes $1000.

On November 24th, I sold the car to them, they said they will buy my car for $30K, payoff was $12K, they cut me a check for $18K, then later said payoff should have been $28K, so they want me to pay them the different, which is $16K.

I am not trying to win this case, I just wonder why do I have to go through all this hassle bc of their mistake? How did they make that mistake in the first place? And even if I lose, I can still negotiate payment term with them. I am single mom and have been unemployed since giving birth to my daughter since I can't find anyone to take care of my daughter, so no income right now, I live by getting support from friends and family, I can't afford to pay $16K now.

I guess I ask for your help on how to answer the 2 requests from them, and when I go up to the judge, do I have any defenses?

Thank you very much for your respond again.

 

[Zigner]

Thank you for your respond. I did consult the attorney, all they do for me was to send offer letter to Carmax to ask to reduce the payoff amount, and they charge me $1000 for that. Carmax refuse, and there goes $1000.

On November 24th, I sold the car to them, they said they will buy my car for $30K, payoff was $12K, they cut me a check for $18K, then later said payoff should have been $28K, so they want me to pay them the different, which is $16K.

I am not trying to win this case, I just wonder why do I have to go through all this hassle bc of their mistake? How did they make that mistake in the first place? And even if I lose, I can still negotiate payment term with them. I am single mom and have been unemployed since giving birth to my daughter since I can't find anyone to take care of my daughter, so no income right now, I live by getting support from friends and family, I can't afford to pay $16K now.

I guess I ask for your help on how to answer the 2 requests from them, and when I go up to the judge, do I have any defenses?

Thank you very much for your respond again.

The $12k probably represented the payoff for the lease. You still owed the agreed value of the car.

 

[LdiJ]

The $12k probably represented the payoff for the lease. You still owed the agreed value of the car.

That is what I was thinking as well.

 

[doanthaitu]

But is it in their nature of doing business to buy leased car by paying the customers with the different between the buying price and the payoff lease price then seek legal action against customers to recoup payoff value of vehicles every single time they buy leased cars? This is my question.

Second of all, I'm not trying to deny that I owe this money, I just want to say that this situation has put me in a very difficult position financially. I can lose this case, I want to work out a payment plan with them, which they refused when I hired an attorney to do so, so it's more affordable to me.

Do we have any possible defenses?

Thank you for your respond.