Dealer never cashed the check

[belliebean517]

My husband traded his car for a truck in September. We filled out all of the paperwork and our bank sent them an electronic check. Since then, the dealer paid off his car but never cashed the check for the loan. Our bank called us in October to let us know the loan was going to expire soon. We then called the dealer and told them they needed to cash the check. They told us they were behind on paperwork and that they would take care of it. November came around and still nothing happened. When we spoke to the bank they said they had 30 more days to cash the check and the loan would still be good. It is now the end of December and the dealer called saying they tried to cash the check and it did not clear. We called to re-instate the loan and now the bank will not approve us for another one. We have already put over $1000.00 into the truck and do not want to have to give it back. What legal action do we have if any?

 

[mightymoose]

The dealer blew it. You don't have any legal action to worry about. The dealer will have to provide the financing with the same terms as your original loan. Don't let them put the responsibility on you, and don't let them stick you in a situation where jacked up interest rates will have you paying more then you originally signed on for. It is entirely their problem to solve.

 

[ashmom123]

I used to do the accounting at a dealership. This shouldn't have happened and yes, the dealer should provide you with the same terms. On that note, most dealerships do what they call a "floor plan" and a most of the vehicles on the lot are owned by the bank and the bank is paid interest every month. When the vehicle is sold, the bank is to be paid. Make sure the truck you purchased is not still on a floor plan and owned by the bank!

 

[jharris352]

I own a dealership so I can speak to this: What a stupid load of crap! If it was my dealership I would come close to firing the whole accounting department!

The dealership can't finance you on their "floorplan" but they do have options. A floorplan is a short term financing for the dealership. However the dealership can get you financing if they want to, and in this case they NEED to. The dealership can literally co-sign for you by agreeing th a buyback of the note if you default. Any bank will take the note as long as the dealership's credit rating is not foul.

Once more, what a load of crap!

 

[ashmom123]

jaharris I didn't say that the dealership should finance then on their floor plan, I said that they should get them the same financing!!! Should it be thru a local bank or gmac or ford motor credit ect!!! They should have their finance department working for them. And I wanted to make sure that the bank that they had a floor plan on didn't have a claim to the truck that they bought. I guess I should have worded my response better. At the dealership I worked at we made sure the check was good and was processed before the customers drove off the lot.

 

[jharris352]

My mistake. I wasn't really disagreeing with you anyway. The point of my post is that dealerships can sign the buyback agreement anytime they MUST get financing for a customer.

 

[ashmom123]

it just sounds like a shaddy dealership. I know if I let that happen when I was doing the dealership accounting I would have been fired on the spot.

 

[jharris352]

I totally agree ash, I think I would have fired the accountant when I first got the report that we had a check for 45 days without cashing it. That check should be in the bank within 3 days.