No information for Financial Institution carrying loan

[karmenchavarria]

Hello, I recently purchased a new vehicle. Actually I signed paperwork on May 28th 2014. I have had nothing but headaches since. Before they will release the vehicle they ask for all kinds of documentation to verify income, residence etc. I provided all the documents. I had a trade in and they gave me $8k for it (which I was still owed). Later I received a call from the finance company stating that they needed more proof of income. So they sent me some paperwork for me to sign and get that information released. Well our employers tool longer than expected but they finally returned the information requested. When I signed the paperwork I was told that Kia would be financing the vehicle so I insured the car with Kia as the lien holder. On the 19th of the following month a payment was drafted from my account for my trade in that I no longer had. I called the dealership and they stated that I would get my money back as soon as the back paid them and they would mail the difference to me.

After 30 days my temp license expired so I went in again to try to collect my money and get my plates but I was unable to resolve either issue. They promised that they would have the money soon and they printed another temp plate. Two days before my payment was due (now we are talking 10th of July) I went in and asked the finance manager who financed the vehicle because I had not received any information at all and my payment was due in a couple of days. He went into his office and brought a number that I should call for KIA. I asked about my money and again he said that I would have it when they got paid.

I went in again on July 14 and asked about my money and the finance company and they told me to come back the following Tuesday. I was out of town so I did not make it until July 18th. They gave me the run around again. I called on the 23rd and asked about my payment and lien holder and they insisted it was KIA. I called KIA and they said they did have the loan but there had been some changes and they no longer had the loan. They gave me another number to call and I called and it was another institution.

I called the dealership again and they insist that it is KIA that is financing but it isn't. I have my vehicle insured with KIA as the lienholder. The dealership stated that they had made my first payment and that I owed them that amount. OK. I do.

When I signed I thought I was signing with KIA. They insist it is KIA but I already verified and it is in fact someone else. I still don't have plates and I have not gotten my money but since I owe them money now they want me to come in.

Is there anything I can do about this issue? Could I take the car back due to a breach of contract? The terms I signed do not match what the other finance company has? I did not receive any paperwork for the other bank?

What can I do if anything?
Thank you in advance.

 

[Michael Wechsler]

Sorry nobody got back to you earlier... must have slipped through. What a terrible situation at the car dealer. Auto financing can be a confusing mess. There is no way to know which party is the holder without seeing the documents. It seems like KIA may be using a financial institution to manage the financing, which makes sense in a way since KIA wants to make cars, not finance them, so they have another company that they may use. Perhaps it is a sister company, I don't know.

The real question is who is responsible for you to get your car and plates? If you bought it from the dealer, they should be helping you get the car asap. If the terms don't match, you don't have an agreement. The question is, who did you purchase the vehicle from? It seems like you purchased the vehicle from the dealer and that another company was agreeing to finance and using the car as collateral or security. What is odd is that KIA is the lienholder, not the financing company? I am wondering whether that is because of what you put on the insurance policy.

A mess. I hope you got it worked out.