So I purchased my 2015 xlt sport about a month ago with a trade which we financed through a bank from dealership. After a week, someone hit me. Have been constantly calling up there about getting the payoff sent to us. Well finally, we got in touch with someone who knew what was going on. Apparently, they aren't wanting to give us the rate that we signed for. That is not happening as the deal was made at the specified rate. Back and forth between us and the dealership, they are just going to take the truck back and give my trade back and I will be truck shopping again. Has anyone had any similar experience to returning the truck. Anything I should watch out for when signing the truck back to them and getting my trade back? Any help is appreciated.

 

I am no lawyer, make sure your insurance company knows what is going on, take your copy of the sales contract to a lawyer and have him review it and ask him how to protect your self in this situation.

 

Call your state's Attorney General, and ask what can be done about "bait and switch" lending tactics.

I assume you have something in writing showing the agreement at a (presumably) lower rate. And now they're trying to renege on the deal and get you to a higher rate loan?

I wouldn't accept that BS. Someone needs to eat that, and it shouldn't be YOU.

 

Am I missing something here?

First question: Is the truck totalled?

If no, the truck needs to be repaired. I don't see why the dealer would take the truck back in this situation. The payoff shouldn't matter as the vehicle VALUE is what determines total loss.

If yes, start with insurance. Do you have new car replacement? If no, does the insurance company's payoff cover your balance? Do you have gap insurance on the loan to cover any remaining payoff that the insurance payout will not cover? At that point, you'll know what insurance will cover as far as you getting into another truck. If you're going through the same bank, I wouldn't be surprised if the rate went up given that the hard inquiry on your credit could affect your score and thus your rate. If it's not a local credit union with a human being who you could talk to, it's an uphill battle.

Something is not adding up...you just traded into a new truck, which you own as soon as you sign the papers and drive off the lot. You got hit, and now the dealer is going to take your accident damaged truck back and give you back the vehicle you traded in? I've never heard of such a thing and I don't think you're explaining this entirely.

 

the car was hit in the front passenger side. Just body damage. The truck has been fully repaired will all new OEM parts.
I have the original paperwork showing the interest rate that we signed for the truck for. The bank wants to go back and say that after they approved us previously for that rate, they want to change it and charge us a higher one. Told the dealership that, that is not what we agreed upon and they said that they will just return the truck and give my trade back.
When I go with the next truck, I will be going with a local credit union so we won't have to go through this again.

 

Doesn't add up.

So the accident/repair are completely out of this then.

You signed paperwork and it has your interest rate on that paperwork. That rate is provided after your credit is pulled and you're approved for the loan. Period, the end. You sign it, it goes into effect. There's no way for that to change.

If you have your paperwork stating that rate on it, and not just word of mouth, go into the dealer with paperwork in hand and show them that's what you signed. Go into the bank and show them that's what you signed. To renege on that is illegal and a breach of contract and you should sue the bank.

Another option is that the dealer wrote up the paperwork with the lower rate assuming you'd qualify for it and after the bank processed the application the rate was actually higher. This would be a rare case and in this situation you should force the dealer to make it right given they falsified a legal binding document. In this situation I'd take the slightly higher interest rate and make the dealer give you the cash difference in the interest over the life of the loan, plus some for your troubles. They don't play ball, you sue. This seems more likely since the dealership is so willing to take the truck back (they NEVER offer that so easily).

Final option I can think of is that you missed the rate on your paperwork (happens quite frequently) and the dealership told you one rate but you actually qualified for a higher rate once your credit went through. You should have picked up on it as a slight change in the monthly payment, but you may have missed it. Double check the paperwork. If it reflects the higher rate, that's on you and if the dealer really is willing to take the truck back at full purchase price, IMO you should run, not walk, down there and do it right away. You'd be saving yourself the initial depreciation and additional depreciation of an accident damaged vehicle, and getting into a new one, essentially a total do-over.

 

Dealership sounds fishy to me. Why would they take back now what is a used wrecked vehicle, if the bank is the one who is in disagreement over the rate? I know dealers are bad about selling you a truck before they have an interest rate locked. Is it possible the dealer in fact promised you a rate so you would buy but the bank did not agree with the dealers to good to be true rate. My credit is over 800 and I got a 2.99% through chase for example. If it was me, and trust me I had a horrible experience with compass on the new construction home. I would raise some hell. Do your homework and catch them in a lie and then go to town!

 

With 800+ credit you should have been able to get a 1.9 easily, even 0.9 or 0% as ford is currently advertising. I agree I think the dealer gave them one rate to get them to jump and the bank's giving a 'no way jose'. Shouldn't be able to happen given how the process is set up, but who knows.

 

Yes, I have the paperwork saying the interest rate along with the payments. A payment hasn't been made on the truck yet as they said the bank never would finance it. They sat there for an hour and tried to come up with something(I assume the cash difference option that you stated) They came back with they would give back my trade, down payment, and they would take the truck back. Maybe they would be losing more than selling otherwise??
I'm perfectly fine with taking the truck back as long as I get my down payment/trade back. I prefer that actually, as you said...the depreciation etc from the wrecked truck. I just didn't know if there was some paperwork to watch out for. I'll be sure to read over anything that they give me for returning it..etc.

 

Why not just ignore the dealership and the bank for the next week, call the credit union and refinance the truck at a lower rate (as you suggested you could)? This way everyone gets off of your back and you keep your truck.