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Lustine Toyota Dodge Complaint - Don't Buy From Them - Sales/Financing

Review by crazy4cowboy on 2007-10-04
WOODBRIDGE, VIRGINIA -- Went in , spent most of the afternoon looking for and arranging finance for a car with a payment we could afford. Signed all paperwork and left with a new Caravan. 27 days later was called to come in to re-do some of the paperwork because of an interest rate change. BIG LIE. The original contract "FELL THROUGH" and they wanted the van back. They didn't attempt another finance company, hadn't payed off our trade and now 2 months behind in payments on the car we traded in (traded it in on the day payment was due and was summoned back to the dealer on the day the next payment was due). We weren't expecting to make a payment for 45 days from purchase. We left the dealership on the day of purchase with a congratulations on your new car and hope you enjoy. 27 days later we find out they GHOSTED the loan and ruined our already blemished credit rating. When confronted, they acted like it was our fault and didn't we know we were responsible for paying payments until they paid it off.

We told them that we left the dealership with a signed contract and told we had a new car, why would we think that we had to continue making payments? Very hostile and unfriendly. Amazingly on the day we were asked to come in and "fix" the contract, the salesman and finance officer we dealt with were taking a day off.

DON'T GO HERE TO BUY A CAR!!! We are seeking legal action.
Comments:9 Replies - Latest reply on 2007-10-05
Posted by bho55 on 2007-10-04:
I would not take the car back to them. I would call them and say either fix the loan, or make my car payment for me, before I bring your car back. See what they say then...
Posted by Anonymous on 2007-10-04:
You probably need a lawyer here.
Posted by Timboss on 2007-10-04:
The car 'technically' still belongs to the dealer, the loan was denied. You can return the new car and get your old car back. Contact the lending company on your old car and explain exactly what happened and, of course, make the back payments. The new car is NOT yours until you sign new loan papers. Take the car back, get your old car and go to a reputable dealer (if one exists).

And just a note of caution, in your case the dealer doesn't pay off your old car with his money, they simply roll that amount into your new loan. So now your new loan amount is very likely higher than the car costs new. I think this is called upside-down in the loan, something you never want to do. Best of luck.
Posted by WhineX on 2007-10-04:
I'd agree that you were likely ill-served by a dealer eager to make a sale, but there is one undeniable fact here: as signer on the loan, it is your responsibility to know the terms, no matter what the dealer tells you. Instant credit is only good if your loan goes through. Next time, arrange financing before stepping foot on a sales lot.
Posted by steve101 on 2007-10-04:
This is a typical scam that many dealerships use. Its called spotting. They give you the car at a specific rate then call you two weeks later and tell you the deal fell through, then re-write the financing at a much higher rate.The reason for this is that the profit on a new car sale isn't great so they make it up by spotting and keep the additional interest payments which can add up to many thousands over the life of the loan. Always get your financing in place from your bank or credit union before you walk into a dealership or you will get raked over the coals.
Posted by Aerocave on 2007-10-04:
What the dealership did here (I am assuming anyway) is ran your credit bureau and made a judgement call on the approval, without actually having one. We will do this sometimes on a Saturday if the banks are closed, but the customer has to have a respectable credit rating, a decent downpayment and/or trade, and basically the deal must be a "no brainer" for credit approval. Also, we will have the customer sign a statement "This deal is being delivered pending formal bank approval" which will at least let the customer know upfront that the contract still needs to be approved. Some F&I managers simply take too big a risk in order to make a sale, ultimately causing a mess like this.

My guess is your credit is subpar, you owed a lot a money on your trade-in, and the original terms were denied. I am not sure why it took 27 days to make the "feared" phone call, but I assume after shopping the loan around they could not obtain credit approval anywhere near the original terms. As far as your trade and the late payments, I agree with Timboss; contact the bank/finance company of your current loan and explain what happened, and MAYBE they will take off the late fees...although, as an added ammunition, I would be prepared to pay both late payments immediately, possibly by check over the phone.

This situation is really more about a poorly operated dealership that is willing to take the "roll the deal and worry about it later approach" in order to get a sale--than the typcial "scam" comments I read about all the time...And as far as financing cars, many customers walk out of my dealership with better rates than their bank or credit union--in fact many tell us that the bank told them we can get them a better rate. And, I'm sorry, I have to add that in my 14 years in sales and management at an auto dealership, I have never heard of "spotting" as Steve101 describes...when you have indirect financing set up with outside lenders (as the case with auto dealers), the dealer does not "keep the additional interest payments." It simply does not work that way. Spot delivering is car dealer lingo for the situation when a customer buys the car and takes it along on the same day, which more and more customers are doing.
Posted by yoke on 2007-10-05:
aero, dealerships should not be able to allow you to drive off the lot unless financing is 100% approved, even if it means coming back in a day or 2. It is a scam. The customer gets all excited that they have a new car and then 3 weeks later are told, sorry. If anything the dealership should have been responsible for the payments not made while the car was in their possession. When trading in a car you sign it over to the dealership, they owned the car for 27 days.
Posted by Anonymous on 2007-10-05:
I'm siding with yolk on this one.
Posted by Aerocave on 2007-10-05:
I agree that it should not have taken 27 days...And I agree that situations like this should never happen. Sometimes, however, customers push us to take delivery that day...and as I stated, we will not allow it, unless we are 99.9% sure it will be ok--and even then we attempt to cover ourselves and be upfront.

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