When the Dealership Steals Back the Car They Just Sold You

"SteveLehto" (stevelehto)
09/22/2014 at 13:00 • Filed to: None

254

You bought a car and a couple days later the dealership comes by in the middle of the night and steals it back from you. Surprised? It happens all the time.

JT went to a car dealer and found a late model used vehicle he liked. His credit was okay – not stellar – but good enough to allow him to finance the car without getting a co-signer. The salesman and the others involved in the deal kept coming and going from the desk where he was sitting, bringing papers and talking about different lenders but assured JT they could get him financed. He had $1,000 for a down payment. As closing time at the dealer approached, they put some papers in front of him and said they had worked everything out. He signed and gave them the $1,000. He got in his new (but gently used) car and drove home.

A few days later, the salesman called him and told him there was a "problem" with the paperwork. Could JT come back to the dealership? JT went in and found his salesman who took him back to see the finance people. They told him that the bank which had approved his loan the other night had reneged. The good news is that they had found him a new bank and this one would move forward with a loan – even though JT already had the car – and only at a slightly higher interest rate. The papers were all filled out for JT's signature. They wanted to tear up the paperwork from the other day.

I have heard from many consumers who sat down and signed the new papers at this point. Instead, JT said words to the effect of, "Gentlemen, I believe you are attempting to be dishonest with me. Hence, I shall exit now." I wasn't there so we'll go with that.

The next morning he looked at his driveway and his car was gone. He called the police to report the stolen car. Shortly after, he was notified that the car wasn't stolen; it had been "repossessed" by the dealer. When he called them, his salesman said they were forced to do that when JT had refused to sign the new papers. All he had to do to get the car back was sign the new papers and pay the towing bill. The car was at the dealer. If he did not want to do that, they would simply keep his down payment for their troubles.

JT called an attorney and brought in all of his paperwork. Please keep in mind that this transaction took place in Michigan and this is an area of law that varies wildly from !!!error: Indecipherable SUB-paragraph formatting!!! to !!!error: Indecipherable SUB-paragraph formatting!!! In JT's case, there was a !!!error: Indecipherable SUB-paragraph formatting!!! which was signed by both parties. And then there was a finance contract. That contract was typical for Michigan in that it said that the buyer and seller agreed to a financial arrangement (down payment, monthly payments etc) and that the dealer was then authorized to assign the loan to a lender. But, it was the seller who was initially lending JT the purchase money.

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What had most likely happened was that the assignment of the loan had failed. The dealer hadn't gotten anything approved and just hoped they could find a bank willing to take over the deal. Or, they had planned on ripping off JT all along. Interestingly, this meant JT could simply make his monthly payments to the dealer until they managed to reassign his loan and he would not be in breach. Of course, the dealer was not trying to reassign the loan; they were trying to shake him down for more money.

I advised JT to make his monthly payments to the dealer and we filed suit. The transaction JT saw is sometimes called a !!!error: Indecipherable SUB-paragraph formatting!!! – although those are quite often cases where the vehicles are given to the buyer without even pretending there is financing in place. In JT's case, they told him the financing was there. These deals are also sometimes called "Yo-Yo Financing" for obvious reasons.

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Our lawsuit was simple: JT owned a car. The dealership stole it. We sued them for theft. Michigan has !!!error: Indecipherable SUB-paragraph formatting!!! that allows you to sue a thief for treble damages. And those can be construed as the value of the goods at the time of the theft. So, the moment we filed suit, JT was into this for $1,000. Each month he made a monthly payment. But our lawsuit named a sum closer to $50,000 (three times the purchase price of the car). The statute also allows for the recovery of court costs and attorney fees. It's cases like these which defendants are not wise to drag out. And they didn't. A short while later, they agreed to settle.

JT didn't get a gigantic windfall but he did get all his money back and something for his trouble. His attorney fees and court costs were likewise paid. During the case, I took the deposition of one of the dealership's finance people. That is, I got to question him under oath in front of a court reporter about the case. A few months after the case resolved, I saw the man in a restaurant and he came over and said Hello. He said he no longer worked at the same dealer. I asked him about JT's case. How common was something like that?

"Grabbing a car to get more money? They did it all the time."

"No, I mean that you guys settled with us?"

"Oh, that never happens. No one ever sues us. Most everyone just paid to get the car back. Why do you think they keep doing it?" He gave me his card.

There are many variations on this scam but the upshot is that the buyer is asked to come back to the dealer after the deal has been finalized, to "correct" or "redo" some paperwork. And it happens all the time. Search the term "spot delivery" on the interwebs if you are curious.

I implore you: If this ever happens to you, call an attorney before you go back to the dealer. Simply do a web search for an attorney who handles "auto fraud" or even "lemon law" (the fields are closely enough related) and simply ask for some free advice. It might mean the difference between you keeping the car or walking home from the dealer.

A few readers will gripe about my "call an attorney" advice here and ask if there isn't some self-help they can resort to. No, there isn't any simple advice I can give you like that. The laws on this really are different from state to state. Further, there are a variety of other laws which might prove helpful in your case that were not mentioned above, both Federal and state. Depending on how your situation unfolded, there might be violations of the Truth in Lending Act, Equal Credit Opportunity Act, the Motor Vehicle Sales Finance Act (a state law in Michigan but most states have a similar one) and the Fair Credit Reporting Act, just to name a few. A local attorney who is versed in them is the best place for an aggrieved consumer to start.

Follow me on twitter: !!!error: Indecipherable SUB-paragraph formatting!!!

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Steve Lehto has been practicing consumer protection and !!!error: Indecipherable SUB-paragraph formatting!!! for 23 years in Michigan. He taught Consumer Protection at the University of Detroit Mercy School of Law for ten years and wrote !!!error: Indecipherable SUB-paragraph formatting!!! . He also wrote !!!error: Indecipherable SUB-paragraph formatting!!! and !!!error: Indecipherable SUB-paragraph formatting!!!

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DISCUSSION (100)

Bandit > SteveLehto
09/22/2014 at 13:04

Again man, another excellent article.

mr_gofast > SteveLehto
09/22/2014 at 13:05

Kinja'd!!!

SteveLehto > Bandit
09/22/2014 at 13:05

Thanks!

SteveLehto > mr_gofast
09/22/2014 at 13:06

Thanks! And Thanks!

Jordaneer, The Mountaineer Man > SteveLehto
09/22/2014 at 13:16

That is why you should save up and buy in cash, but that is really obnoxious for a dealership to do.

Its the evils of business, they all want more money, so they scam you in any way possible.

SteveLehto > Jordaneer, The Mountaineer Man
09/22/2014 at 13:18

Yes. They usually do this to people who are a bit disadvantaged (as they say) and those who do not know their rights (surprise surprise!)

Jordaneer, The Mountaineer Man > SteveLehto
09/22/2014 at 13:21

Oh my gosh, scamming people who don't know their rights out of money.

seems like the normal thing to do.

SteveLehto > Jordaneer, The Mountaineer Man
09/22/2014 at 13:22

Funny how that works, right? Apparently the story ("The bank reneged") makes JUST ENOUGH sense for some people to think it's true.

thevoid > SteveLehto
09/22/2014 at 13:25

Choctaw Bingo?

Jordaneer, The Mountaineer Man > SteveLehto
09/22/2014 at 13:27

aren't banks supposed to follow through if they promise to finance someone?

SteveLehto > Jordaneer, The Mountaineer Man
09/22/2014 at 13:33

Yes, but the dealer claims the bank backed out. Often, the bank never knew about the loan or denied the application in the first place.

SNL-LOL > Jordaneer, The Mountaineer Man
09/22/2014 at 13:35

True, but at the same time so many manufacturers are offering 0% APR. One would be a fool not to take the free money.

Although, it's safe to assume these outfits aren't there to ensnare the 800 FICO people.

MontegoMan562 is a Capri RS Owner > SteveLehto
09/22/2014 at 13:38

Oh man those little B lots can be worrisome places sometimes...

jariten1781 > SteveLehto
09/22/2014 at 13:42

In the same vein as something that happened to a co-worker of mine. I got a call around 9pm and apparently they were finalizing his financing on the new car but they wouldn't be able to get bank approval until Monday morning at the earliest. They wanted him to sign some stuff and take the car then they'd let him know if there were any issues later. I told him that I'd wait until there was final paperwork. Went back on Monday and they claimed the offer was no longer valid for some reason or another and the price (or financing terms, don't remember) had gone up not insignificantly. He, finally, became uncomfortable and walked.

Wonder if they were trying to pull this kind of thing.

CAR_IS_MI > SteveLehto
09/22/2014 at 13:42

I know out here in NV the law states that the dealer has 3 business days to make changes to the finance agreement (if per say the bank did fall out), and if that were to happen, and the purchaser did not agree to the new finance agreement, the dealer legal has to refund and return all monies and items accepted in the agreement (I forget the legal speak but I bought my last car late on a Friday night so the finance guy made me aware of all that just in case).

SteveLehto > CAR_IS_MI
09/22/2014 at 13:53

Some states have laws that KIND OF allow this to happen. These guys wanted my guy to lose his downstroke.

SteveLehto > MontegoMan562 is a Capri RS Owner
09/22/2014 at 13:54

You're in MICH, right? This was a HUGE place you have heard of. One of the biggest.

SteveLehto > MontegoMan562 is a Capri RS Owner
09/22/2014 at 13:54

You in MICH? This place is huge. You HAVE heard of them.

SteveLehto > jariten1781
09/22/2014 at 13:55

Probably. Thanks.

CAR_IS_MI > SteveLehto
09/22/2014 at 13:56

So how would their scam work had he just signed the papers for the higher payment?

Would they just play the "oh crap, that bank fell out too" game, or would they just put him to a bank where they get a lower buy rate and make good money off his interest?

SteveLehto > CAR_IS_MI
09/22/2014 at 13:57

I assume they were going to get a slice of the financing. I have also seen it where they say "the bank" needs more money down.

CAR_IS_MI > SteveLehto
09/22/2014 at 13:59

May I ask, was this a buy here pay here store? They seem to have a penchant for ripping people off in the name of giving them automotive "freedom".

SteveLehto > CAR_IS_MI
09/22/2014 at 14:00

In this instance, No. It was a huge dealership. HUGE.

timle > SteveLehto
09/22/2014 at 14:01

If you finance a vehicle (and I have several times) bring in your own already approved financing. Sure it might be a bit more inconvenient for you - but it reduces the complexity of actually buying the car to

Them: This is how much the car is - do you want any of this extra BS that if you financed through us we would just update the loan amount.

You: No thanks to the extra BS stuff. Here is the money.

MontegoMan562 is a Capri RS Owner > SteveLehto
09/22/2014 at 14:01

Yes I am I'm sure I probably have which means they probably aren't a full on B lot.

I've had some issues with used dealers before and them hiding stuff wrong with a vehicle, but man playing with finances is MESSED UP.

SteveLehto > timle
09/22/2014 at 14:01

Yes. That is the best way to go if you can swing it. Great advice.

Thanks!

SteveLehto > MontegoMan562 is a Capri RS Owner
09/22/2014 at 14:02

They know that a lot of people worry they won't get financing so they use this as the last chance to wring a little more out of the deal.

timgray > SteveLehto
09/22/2014 at 14:03

Are you under a non disclose order? how about letting out the court case number so some of us can look it up.

SteveLehto > timgray
09/22/2014 at 14:04

Sorry, I can't do that. But there's no need to. This happens all the time. A lot of dealers do it. My client's case was not that unusual at all.

timle > SteveLehto
09/22/2014 at 14:06

I should have added - great article! I've really been enjoying your articles - especially this one, the Z28 one, and the fatal sentence one. Thanks for the valuable insights!

MontegoMan562 is a Capri RS Owner > SteveLehto
09/22/2014 at 14:06

Man, that sucks. I'm thankful I've never been in that situation.

And a lot of the time I scam them right back so I lower my payment a week or so after I leave the lot.

I get whatever deal they'll give me by using their financing and then a week later turn around and re-finance with my credit union who crushes whatever rate they gave me.

Goes something like - "I'll go with your financing if you take another 1k off the price." "I think we can work something out!" Aaaand a week later I'm off to the Credit Union. Pay to get the title re-done with a different Lean Holder and I'm set.

Thankfully I'm lucky to have good credit so I can do this. I would have said something of the sort of what the guy above had said if they asked me back like this though.

SteveLehto > timle
09/22/2014 at 14:06

Thanks. And if you are the Twitter thing, follow me there: @stevelehto

SteveLehto > MontegoMan562 is a Capri RS Owner
09/22/2014 at 14:07

That's a good approach. I like it!

EV-Expert > SteveLehto
09/22/2014 at 14:07

Yep, it's easier to bring your own financing to the table. I was financed through the bank (Credit union) at a much lower interest rate than the dealer.

So, by working out a new budget and making some extra payments, the car was paid off in 2 years.

SteveLehto > EV-Expert
09/22/2014 at 14:08

Fantastic! Like I said, this is often targeting people who cannot afford to do that but it is a good thing to keep in mind.

Watch4BlueShells > Jordaneer, The Mountaineer Man
09/22/2014 at 14:08

In a slightly related note, the best car deal I ever negotiated was when I was paying cash. You have a better negotiating position and can literally shop anywhere. Don't have to worry about financing, trade in values & costly add on's.

MontegoMan562 is a Capri RS Owner > SteveLehto
09/22/2014 at 14:11

Feel free to share the strategy with whoever you like, it's worked great for me over the years.

A friend of mine who did the same thing and refinanced had a dealership call them awfully pissed off. It was the height professionalism if you ask me. I'm not even sure why they called because it was financed through a bank they put them through, not something like Ford Credit. So the company/dealership didn't really lose anything.

The bank must give them kickbacks if the loan stays for a certain amount of time.

I'm curious as to whether the dealership name (despite many brands) shares a name with the largest of Chevy SUV's? I understand if you can't answer my not so vague guess.

01NB, Enjoying F10 DeMuro Style > SteveLehto
09/22/2014 at 14:12

Someone I know has had the "bank reneged" deal happen to them... TWICE.

They don't have stellar credit which is probably the reason. In both cases, they told the dealer to honor the terms as negotiated or they would return the car and want their down back. In both cases, they returned the car and got that $ back.

FWIW - this happened in California, and it's been 5 or so years.

SteveLehto > MontegoMan562 is a Capri RS Owner
09/22/2014 at 14:13

No, it's not them but it's close! And yes, they often get a piece of the financing so they may be losing money when you refinance.

SteveLehto > 01NB, Enjoying F10 DeMuro Style
09/22/2014 at 14:13

Good thing they stood their ground. A lot of people would have caved and paid.

Michigander > SteveLehto
09/22/2014 at 14:17

Does the lot owner's name start with T and end with erry Hanks?

MontegoMan562 is a Capri RS Owner > SteveLehto
09/22/2014 at 14:18

HMMMMMM

I don't think I have a vague way of guessing the other dealer name.

I'm guessing it's an actual brand network because I was close with my first guess.

IF it was Snethkamp I wouldn't be surprised or shocked, they're the ones who scammed us on damage to the vehicle. Which we finally after harassing them for a month got all the issues resolved (on their dime)

BoyGenius > SteveLehto
09/22/2014 at 14:20

I encountered something similar once.

I bought a car at a credit union's special member sale. Several new car dealers were present. I took delivery of the car, and got a phone call from the credit union the following Monday, saying that there had been a mistake and that the car had been sold for $1,500 less than it was supposed to be sold. How is that my problem? I had submitted an offer, the credit union accepted, and we signed a contract.

I got a call from someone else at the credit union telling me that I needed to pay the additional, or they were going to personally have to pay it out of their own pocket. Fine, I said. I'll bring the car back and return it to you. I'll buy a new car elsewhere, and you can have what is now a used car to sell for a depreciated value.

I got a third call from the credit union telling me that my "offer" had "been accepted" and I could keep the car at the agreed-upon price.

It was all nothing more than an attempt to shake me down for a few dollars more.

SteveLehto > BoyGenius
09/22/2014 at 14:24

Funny how that works. Thanks for the note!

SteveLehto > Michigander
09/22/2014 at 14:25

No, but it is a person's name.

The Gray Adder > SteveLehto
09/22/2014 at 14:25

That's the biggie. IF you can swing it. A lot of the people who go to those other places like the one you're probably talking about can't.

David > SteveLehto
09/22/2014 at 14:27

Interesting. I am in FL, and I got a call back saying that the dealer found me a better loan, with lower interest rates, plus they threw in tire insurance and 6 months additional free service (they had already given me 2 years)... I wonder...

TractorPillow > SteveLehto
09/22/2014 at 14:28

This was a good read. Keep these posts coming!

Jeff H > SteveLehto
09/22/2014 at 14:29

What is the point in being coy about the name of the dealer? Isn't the lawsuit public record anyway?

SteveLehto > David
09/22/2014 at 14:29

Had you already signed the documents? I have never heard of such a thing but then again . . . anything is possible. Thanks for the note!

SteveLehto > TractorPillow
09/22/2014 at 14:30

Thanks.

Racescort666 > SteveLehto
09/22/2014 at 14:30

I'm really glad that I finance through my credit union.

SteveLehto > Jeff H
09/22/2014 at 14:31

Parts of the suit are public. Parts are not. This happens so often it doesn't matter who the dealer was.

In a Mini; let them mock me as My Mini Countryman is higher than you > SteveLehto
09/22/2014 at 14:32

Kinja'd!!!

Simeon Yetarian exists in real life?!

Jim is one of KFCs secret ingredients > SteveLehto
09/22/2014 at 14:35

1. Know your credit score and where you fall in the spectrum (Prime, near prime, subprime, etc)

2. If you're a subprime borrower, never accept a spot delivery.

SteveLehto > Jim is one of KFCs secret ingredients
09/22/2014 at 14:36

Concur.

Alex Kayl > SteveLehto
09/22/2014 at 14:37

This story makes me sick, I am glad your client was made whole!

drdude > SteveLehto
09/22/2014 at 14:38

All this can be avoided by just doing your own loan and paperwork. Its not hard, or very involved... and you get your plates/title/etc quicker than the dealership too. Not to mention, you can buy from individuals, and they tend to be cheaper.

SteveLehto > Alex Kayl
09/22/2014 at 14:38

Thanks!

guppysb > SteveLehto
09/22/2014 at 14:39

I don't know where else on the internet someone actually provides great helpful advice like this (related to motoring). Usually it's an advert for the individual themselves, but you actually post some really really really helpful stuff. Keep up the good work!

Kevin Barrett > SteveLehto
09/22/2014 at 14:39

This happened to my brother the first time he tried to finance a car. He ended up dodging a bullet, though; the car the dealership took back was a Golf VR6.

PartyPooper2012 > SteveLehto
09/22/2014 at 14:40

sounds like an introduction of Michael Townley mission...

SteveLehto > guppysb
09/22/2014 at 14:40

Thanks. I'm glad people read it! And (shameless plug!) if you are on twitter, follow me: @stevelehto

945T > SteveLehto
09/22/2014 at 14:40

Typically the spiff is $300-750 from the bank depending on car value, etc...

Mike D F > timle
09/22/2014 at 14:41

I actually financed my car through a third party company a couple of months ago. You just send them your info and they (claim to) give you the best terms according to what you're looking for. It was actually pretty painless. They show up at the dealership and you sign all the papers right there and they give the dealer the money.

jimz > SteveLehto
09/22/2014 at 14:41

does it happen to be in Sterling Heights?

SteveLehto > jimz
09/22/2014 at 14:41

No, although there are some questionable dealers over that way . . . .

Hoser Dave > SteveLehto
09/22/2014 at 14:43

Mel Farr SUPERSTAR! Imagine paying 11% on a Ford Escort? Baby Jesus!

Kinja'd!!!

BugeHalls > SteveLehto
09/22/2014 at 14:43

One of the few cases where someone is actually more conniving and disgusting than an attorney - the car salesman! They get out of bed every morning knowing that their job is to swindle as much money as they can from someone!

Ben90X > SteveLehto
09/22/2014 at 14:44

There really needs to be a new way to buy cars. I absolutely cant stand this whole haggling process, then dealing with the shady finance guys who try to make you buy all that extra BS warranty stuff that's absolutely unnecessary but jacks up your monthly payment buy like $100. I want to be able to like, go online, pick the car I want, add the options I want and then buy/finance/lease. Click check out and pick up at some place or something. Is that too much to ask?

SteveLehto > Hoser Dave
09/22/2014 at 14:45

You have no idea how much money that family made me . . . .Thanks for the note.

jimz > SteveLehto
09/22/2014 at 14:45

I think I know who it is. I'll keep it to myself.

I looked at a couple of trucks at one which was part of a company which owns a large number of dealers in the area. Place skeeved me out because all of the sales people looked like (and probably were) college kids and the sales manager fit the stereotype of the "used car salesman."

plus I also figured there was a reason all of the Ford trucks I found with the 6.0 Powerstroke had just above 100,000 miles, so I got a lightly used Ranger instead.

SteveLehto > BugeHalls
09/22/2014 at 14:45

Ironically, you may have to hire an attorney to undo what the salesman did.

Thanks for the note (even though I am an attorney)!

SteveLehto > Ben90X
09/22/2014 at 14:46

No, and I bet it's coming. Look how many other industries are getting shaken up by the internet and all.

Arrivederci > SteveLehto
09/22/2014 at 14:48

Great advice, Steve. Years ago I worked in the commercial deposit area of a bank and some of our clients were these smaller (non-franchise) dealers. After developing a rapport with their finance guys, they started talking about their little schemes, this one included. People don't typically sue or don't think they can afford to do so and won't retaliate against the dealer even though they're in the right.

Just as bad and eerily similar is the buy here pay here scheme. That traditionally involved the dealership financing the car for weekly payments, pushing folks into more car than they could afford. As soon as one weekly payment was missed, the car was repo'd and the dealership would then resell it to the next person. They'd have collected the large downpayment (which typically equaled what the dealer had in the car) and any payments as gravy. Some cars would get resold two or three times.

Ltd783 > SteveLehto
09/22/2014 at 14:48

A few readers will gripe about my "call an attorney" advice here and ask if there isn't some self-help they can resort to.

I do primarily criminal defense, and I can all but guarantee you these are the same kind of people who think they can resolve every legal situation themselves by just talking to the police. The same kinds who believe the police when they say things like "I'll just toss the weed in the trash and not arrest you, if you just show me where in the car it is." Everyone hates us until they need us...

My X-type is too a real Jaguar > SteveLehto
09/22/2014 at 14:49

When I was buying my Jag, I initially went to Rick Case to buy and RX8, their finance computer was down, and they offered to spot me the car, I told them no, and gave them a $500 deposit. their finance guy told me he would call on Monday, well 5 days passed and he did not call, so I went to Carmax and bought my Jag, then rolled up to Rick Case in my shiny new Jag to get my deposit back, the finance guy was standing there with the manager when I asked for my deposit back, the finance guy said he couldn't get me financed on the RX8 and only a Mazda 3, I asked him why he didn't call me and he said he figured I'd be back in. The manager had seen what i drove up in and I told him the price and the mileage, the price was more than the RX8 I wanted, he got pissed and started dressing down the finance guy right and front of me for being a lazy SOB and costing him a deal. The finance guy responded, "well he wouldn't let us spot him a car so I couldn't do anything." Oh and it 3 weeks to get my $500 back.

That is why i will never buy a car from Rick Case.

SteveLehto > Arrivederci
09/22/2014 at 14:49

Thanks for the note. I remember reading an article a while back about those car places in CA that did that. Some of their junk wound up earning them more than if they were selling brand new sports cars.

Thanks for the note.

interceptor > SteveLehto
09/22/2014 at 14:50

Good, useful and interesting article.

Ben90X > SteveLehto
09/22/2014 at 14:50

Hope you're right!

R W > SteveLehto
09/22/2014 at 14:51

there really should be a right to legal and financial advisement and planning at any time for any citizen.

SteveLehto > Ltd783
09/22/2014 at 14:51

Concur. I get a few comments on every piece I do telling me that this is a cop out.

Like going to the doctor with cancer but asking him if there is some non-mediciney thing we can try first.

Thanks.

Arrivederci > In a Mini; let them mock me as My Mini Countryman is higher than you
09/22/2014 at 14:52

Yep and he sent Franklin and Lamar to get Steve's client's car back!

dsicle-dallas > SteveLehto
09/22/2014 at 14:52

Can't believe I'm saying this, but I think your articles are quickly becoming my favorite thing about Jalopnik.

SteveLehto > My X-type is too a real Jaguar
09/22/2014 at 14:52

Amazing how some of these places operate. Thanks for the note.

SteveLehto > interceptor
09/22/2014 at 14:53

Thanks!

450X_FTW > SteveLehto
09/22/2014 at 14:53

Michigan has an interesting law that allows you to sue a thief for treble damages.

Does that mean if say someone steals your car, crashes it, you can sue them and make them pay for all the damages and towing fees? And your insurance wouldn't have to pay anything?

SteveLehto > R W
09/22/2014 at 14:53

Damn.. They should have put THAT in the Constitution!

Jon Lohr > SteveLehto
09/22/2014 at 14:54

Is one of the names a nick-name for Richard?

El-Verde > SteveLehto
09/22/2014 at 14:54

People. Get your financing before you go to the dealer. Even if they are offering some promotional 0% rate, go to your credit union and get financed first. You will get a pre approved check which you can write for the full amount of the purchase.

Don't give these "finance" people the chance to run your credit and make you an offer unless you have a backup plan from an independent third party first. It eliminates almost all of these problems.

SteveLehto > dsicle-dallas
09/22/2014 at 14:54

BELIEVE IT! Thanks for the note.

davedave1111 > SteveLehto
09/22/2014 at 14:55

Is there no crime being committed, then? Or just one that you're not going to be able to prove? I can see the triple-damages being a reason to prosecute privately rather than call the police, but otherwise?

450X_FTW > SteveLehto
09/22/2014 at 14:55

My guess is Szott's, I've heard from other dealers that they always had shady car deals

SteveLehto > 450X_FTW
09/22/2014 at 14:55

The laws would overlap in that case. That is, you could still file your insurance claim (probably faster than litigation but you never know) AND sue the thief for treble damages. If you collected from the thief, the insurance company might come looking for some of their money back. But no, the law does not let the insurance co off the hook.

SteveLehto > Jon Lohr
09/22/2014 at 14:56

No.

McMike > SteveLehto
09/22/2014 at 14:56

I have heard of this before.

A few times over the years, I have come across a "My sister/girlfriend/friend got scammed" thread and it goes on for several pages with armchair lawyers and internet tough guys arguing about what the law is/isn't. We never hear the end result.

I'm guessing we never heard back because either the poster was in jail for burning the dealership down, or they were too embarrassed to come back and say "It was really me, and I just paid them to get my car back."

Even though this varies from state to state, thanks for the info.

Ltd783 > SteveLehto
09/22/2014 at 14:57

You're welcome, these pieces are fantastic. Keep it up, you're inspiring me to branch out with each article. Don't worry, I'm not licensed to practice in Michigan :-)

SteveLehto > davedave1111
09/22/2014 at 14:57

The police would say that this is tough to prosecute if the dealer honestly believed they were in the right. Hence, they would tell you it is a civil matter.

Arrivederci > El-Verde
09/22/2014 at 14:57

Did this when I bought my BRZ this weekend. Subaru was offering 0%, but I still brought in the best new car offer I could scrounge from a third party (1.9%). Fortunately the dealer didn't pull any shenanigans and I qualified for the promotional APR. Free money is the best money.

SteveLehto > 450X_FTW
09/22/2014 at 14:58

I've dealt with them before but not on one of these.