Dealer changed appraisal on a car i already traded in and is making me pay the difference

[Jac477]

Englewood, colorado
I traded in my car into a used car dealership and they appraised my car at 5,000$ which I agreed to, (note i owed 6,500 on the lease which rolled the remaining 1,500 into the new used car lease)
we filed paperwork and they handed the keys to me and I went on my way in my new used car.
About one week later I get a call from the dealer telling me the car I traded in has frame damage which I had completely no idea it had such a thing, I had the car for less than a year and it had no issues and no accidents which I can prove through carfax and insurance . Now the dealer told me that my car went from its 5,000 value to half of that and they want to add the 2,500 to the new used car Ioan. I did tell them everything the car had wrong and I signed a disclosure form truthfully without knowledge of the frame damage. Can they do this? Do I have to pay?

 

[quincy]

Englewood, colorado
I traded in my car into a used car dealership and they appraised my car at 5,000$ which I agreed to, (note i owed 6,500 on the lease which rolled the remaining 1,500 into the new used car lease)
we filed paperwork and they handed the keys to me and I went on my way in my new used car.
About one week later I get a call from the dealer telling me the car I traded in has frame damage which I had completely no idea it had such a thing, I had the car for less than a year and it had no issues and no accidents which I can prove through carfax and insurance . Now the dealer told me that my car went from its 5,000 value to half of that and they want to add the 2,500 to the new used car Ioan. I did tell them everything the car had wrong and I signed a disclosure form truthfully without knowledge of the frame damage. Can they do this? Do I have to pay?

What do the documents you signed say? Was the trade-in value that was cited contingent upon a mechanic's inspection of your vehicle?

If there were no conditions on the appraised price given you and upon which your new vehicle financing was based, I would say that the fact that the dealership's original appraisal was faulty should not be your problem.

 

[Zigner]

What do the documents you signed say? Was the trade-in value that was cited contingent upon a mechanic's inspection of your vehicle?

If there were no conditions on the appraised price given you and upon which your new vehicle financing was based, I would say that the fact that the dealership's original appraisal was faulty should not be your problem.

I recently traded in a car and had to sign a statement that there was no prior frame damage. If frame damage is discovered after signing such a document, then it's understandable that the dealer would seek the difference in value caused by such a false representation.

 

[NeilTheCop]

If the frame damage was so slight that they overlooked it when they conducted the first appraisal, and I know from experience that the mechanic who checks the car has a list of items to check and makes notes of anything found, then there must have been a second inspection, possible by a body shop who checked it on an alignment jig.
Contact the dealer and ask for copies of both inspections and ask if you can have an independent inspection.

 

[quincy]

I recently traded in a car and had to sign a statement that there was no prior frame damage. If frame damage is discovered after signing such a document, then it's understandable that the dealer would seek the difference in value caused by such a false representation.

I don't disagree that the dealership would want an adjustment if there was an intentional misrepresentation.

 

[adjusterjack]

Can they do this? Do I have to pay?

You have a purchase/trade in contract. I can't see it. All I can do is speculate and I won't do that. Read it thoroughly and carefully and see if there were any inspection contingencies or frame damage statements (as previously alluded to). If you can't figure it out, then take it to a lawyer for an opinion.

Or, you can just tell the dealer to pound sand and see what happens. Up to you.

 

[Jac477]

Well they had a guy test drive and check the car out and when he came back from checking the vehicle that's when he gave me the appraisal. They also did made me sign disclosure forms saying the car has no interior/exterior issues and I signed unknowingly aware the car did have car frame damage.

 

[adjusterjack]

Did you keep copies of the disclosure forms?

Would help to know if they said something like "to the best of my knowledge."

 

[LdiJ]

Well they had a guy test drive and check the car out and when he came back from checking the vehicle that's when he gave me the appraisal. They also did made me sign disclosure forms saying the car has no interior/exterior issues and I signed unknowingly aware the car did have car frame damage.

Was this a big time car dealer or one of those small (and possibly shady) ones? I could see some used car dealers play tricks like claiming frame damage in order to get more money out of someone. You might want to ask them to show you the actual damage on the car.